Eversheds equity partners will share out £12.5m in extra profit over the next eight years thanks to new accounting rules.
The firm has benefited from the recently implemented FRS5 accounting rules with the £12.5m uplift in recognised income – around 4 per cent of this year’s total income of £323m.
The uplift will be accounted for in Eversheds’ profit and loss account, but will be distributed to partners over a period of eight years in order to spread out the benefit. Each partner is likely to receive an average of around £7,000 per year as a result.
Eversheds’ chief executive David Gray said the uplift was a result of the firm’s work in progress being more valuable than at first accounted for.
FRS5, relating to the way profit and work in progress are calculated, was introduced in January 2004, but relatively few firms have made any changes to their accounts as a result.