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WPP Plans To Restate Certain Financial Statements To Comply With Accounting Rules

Advertising major WPP plc (WPP.L,WPPGY) said that it plans to restate its financial statements included in its Annual Report on Form 20-F for the year ended 31 December 2019 and its report on Form 6-K for the six month period ended 30 June 2020 to comply with IAS 32 and IAS 39.

But, the company said adjustments will not impact its headline results, operating profit, net debt, net assets, net current liabilities or statement of cash flows.

WPP said certain aspects of its financial statements for the years ended 31 December 2017, 31 December 2018 and 31 December 2019 were not fully in accordance with the accounting regulations.

According to the company, the presentation of cash and overdrafts within notional cash pooling arrangements did not meet the requirements; Net investment hedging was inappropriately applied against certain foreign exchange exposures.

The company plans to change its cash pooling arrangements during 2021 such that certain cash and overdrafts will be settled or offset, mitigating the impact of the above in future periods.

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