Lane Clark & Peacock, the investment consultant, believes that UK corporate profits will be hit hard when FRS17, the new accounting standard covering pension costs, comes into force.
FRS17 starts coming into force for accounting periods finishing after June 30. A spokesperson for Lane Clark & Peacock said: "Balance sheet figures will be volatile from year to year. The importance of this balance sheet item must not be underestimated. A sufficiently large FRS17 deficit could lead to a company being unable to distribute a dividend."
