GSK makes changes to financial reporting framework

GlaxoSmithKline has announced that it will be making a number of changes to the format and content of its financial reports from Q1, 2017.

A summary of the changes are as follows:

– Core results will be renamed Adjusted results and will include ‘ordinary course’ legal charges

– GSK will continue to present Total results before Adjusted results and provide a reconciliation between the two.

– Charges and expenses arising from Significant legal matters will be aggregated into this reconciliation and reported in a new column, ‘Divestments, Significant legal charges and other items’.

– Adjusted results will now exclude the following items and their tax effects:

— Amortisation and impairment of intangible assets (excluding computer software) and goodwill;

— Major restructuring costs, including those costs following material acquisitions;

— Transaction-related accounting adjustments for significant acquisitions;

— Significant legal charges (net of insurance recoveries) and expenses on the settlement of litigation and government investigations, and

— Other items, including disposals of associates, products and businesses, and other operating income other than royalty income.

At 2:11pm: (LON:GSK) GlaxoSmithKline PLC share price was +8.75p at 1646.75p

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