British Petroleum is expecting to be
hit with a $1.5bn (£1.1bn) one-off accounting charge following new US tax
reforms championed by President Donald Trump.
Though it expects the changes to be
positive in the long-run, the oil giant said the cut in corporate tax from 35pc
to 21pc will force it to revalue deferred tax assets and liabilities on its
balance sheet and pay the hefty charge in its fourth quarter.
BP said: “The ultimate impact of the
change in the US corporate income tax rate is subject to a number of complex
provisions in the legislation which BP is reviewing.”
The FTSE 100 firm reported a profit
after tax of $172m last year.
The news follows similar
announcements by BP rival Shell which expects a $2bn-$2.5bn hit.Barclays
expect £1bn charge.
Barclays also warned its Common
Equity Tier 1 (CET1) measure - which was brought in to help make banks more
resilient after the financial crisis - would fall by 20 basis points as a
consequence of the changes.
The US Tax Cuts and Jobs Act was
signed into law on December 22 despite fierce opposition by Mr Trump’s
opponents and some in his own party.
Telegraph
No comments:
Post a Comment