FTSE 250 investment management company Brewin Dolphin Holdings has changed its accounting policy, and made retrospective adjustments to its October 2007 opening reserves, after the financial reporting watchdog raised concerns. The adjustments, following a review of Brewin Dolphin's accounts by the Financial Reporting Review Panel, include a consequential reduction of net assets by £2.2m as at 1 October 2007. The FRRP flagged up Brewin's practice of not separately recognising customer related intangible assets in the purchase of investment management businesses. IFRS 3, Business Combinations, requires an acquirer to recognise intangible assets separately if they meet the definition of an intangible asset in IAS 38, Intangible Assets, and their fair value can be measured reliably. In a trading update published today, Brewin indicated that it will change its accounting policy for the next set of financial statements, for the period ended 27 September 2009, so that intangible assets representing client relationships will be recognised separately from goodwill. As a result, opening reserves at 1 October 2007 will be adjusted to reflect the accumulated amortisation that would have been recognised from the date of transition to International Financial Reporting Standards of 25 September 2004 to 30 September 2007. Net assets at 1 October 2007 will be reduced by £2.2m to £113.1m. In the 2009 financial statements, the comparative figures for 2008 will be amended to include a total amortisation charge on intangible assets of £4.2m.