Company Announcements

IASB Accounting Interpretation

Source: RNS
RNS Number : 6295Q
Hammerson PLC
22 February 2023

Hammerson plc ("Hammerson" or the "Group")

IASB Accounting Interpretation and Impact on 2021 Income

22 February 2023


In October 2022, the IASB IFRS interpretations committee finalised an agenda decision in respect of 'Lessor forgiveness of lease payments (IFRS 9 and IFRS 16)'. 

This stipulates that losses which were incurred on granting rent concessions, which for the Group occurred during the Covid-19 pandemic, should be charged to the income statement in the year they are granted.    

In its 2021 audited financial statements, the Group's treatment of Covid-related concessions, consistent with certain other companies within the sector, has been to recognise these as lease modifications such that the impact was initially held on the balance sheet and then spread forward into the income statement over the lease term or period to first break. 

The impact to be reflected in the forthcoming 2022 full year results is that 2021 figures have been restated as set out below:



As originally reported






Gross rental income




Adjusted Net rental income




Adjusted earnings






The change of policy will also benefit 2022's adjusted net rental income and adjusted earnings by c.£2m. There are no other material changes to the Group's income, net assets, or cash flows.

The Group's earnings expectation set out in the Q3 trading, operational and rent collection update dated 8 November 2022 remains unchanged with adjusted earnings not expected to be less than £100m.

The Group will present 2021 and 2022 figures on this basis at the forthcoming 2022 full year results on 9 March 2023.


For further information contact:

Josh Warren

Director of Strategy, Commercial Finance and Investor Relations

Tel: 020 7887 1053

Natalie Gunson

Communications Director

Tel: 020 7887 4672

The announcement above has also been released on the SENS system of the Johannesburg Stock Exchange and on Euronext Dublin.

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