LONDON, Nov 30 (Reuters) - British defence group BAE Systems said on Thursday its transition to a new accounting standard was not expected to have a material impact for its 2018 year and beyond.
BAE, which is moving to the International Financial Reporting Standard (IFRS) 15, said the switch would have no impact on the way it managed its contracts. The group will use the new accounting system for the first time when presenting its half-year 2018 results.
BAE also said on Thursday it had agreed with the trustee boards of its defined benefit pension schemes to increase by 15 million pounds ($20.19 million) the amount it pays each year to reduce the deficit, taking the total annual figure to around 220 million pounds in 2018.
At the March 31 2017 funding valuation date, the aggregate of the deficits across the UK schemes was 2.1 billion pounds, broadly similar to the position at the last valuation in 2014.
$1 = 0.7431 pounds Reporting by Kate Holton; editing by Jason Neely