Warehouse takes $23m hit

The Warehouse said its net profit after tax in the year to August 1, 2010 will be reduced by a $23 million accounting item relating to government tax changes.

The deferred tax liability adjustment is a one-off, non-cash accounting entry which has no impact on underlying profitability, cash flows or dividend policy.

A number of companies have already disclosed similar deferred tax liabilities and more are expected to follow.

- NZPA