Frontier Smart Tech reveals accounting error after healthcare disposal

Frontier Smart Technologies Group announced on Tuesday that in the last week, as part of an internal reforecasting exercise, the board had become aware that an intercompany debtor of £1.67m recorded in the balance sheet at 31 December should have been provided against as part of the disposal of the healthcare business.

The AIM-traded firm said that, had that provision been taken, the loss from discontinued operations would have been disclosed as £15.84m rather than the loss of £14.17m included in its accounts.

“This charge is not a cash item and the board [does] not consider this anticipated adjustment to be material in the context of the 2016 accounts and the discontinued business,” the Frontier board explained in a statement.

“Furthermore, there is no impact on the profits or cash of the continuing consumer audio business.

“The precise accounting treatment will be determined during 2017.”