Finance: A Thorny Problem of Standards Industry Benchmarks May Be of Little Use When Differences in Workingpractice Are Taken into Account. Roger Trapp Reports on the Wider Implications

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Benchmarking and other comparisons within industry sectors are all the rage at present. But, quite apart from any management reluctance there may be to go along with such initiatives, they may be of limited use - for the simple reason that different companies may have significant differences in approach towards accounting policies and the like.

A report just out from the accountants Arthur Andersen makes the point vividly with regard to retail companies. For example, the research undertaken by the firm's UK retail group indicated a certain variation in the way that the pre-opening costs of new stores - such as rent and rates, staff recruitment, training and advertising …