During the year the Directors reviewed properties held within inventories and are now of the opinion that given the complexity and the nature of the developments at Wilton Park and Cheshunt it is more appropriate to capitalise interest in accordance with IAS 23 Borrowing Costs in relation to the properties at Wilton Park and in the Cheshunt joint venture. Further information on this assessment can be found in notes 1 and 3. A prior year adjustment of £1,298,000 has also been made to recognise an additional deferred tax liability relating to the revaluation gains on investment properties following a review of the Group's capital losses available for set off against future capital gains that were erroneously calculated in the prior year. The financial impact of these adjustments is shown below:

As previously statedAdjustmentsRestated
2016
£000
2015
£000
2016
£000
2015
£000
2016
£000
2015
£000
Deferred taxCapitalisation of interestCapitalisation of interest
Group Income Statement
– net interest(6,948)(8,172)849691(6,099)(7,481)
– profit before tax32,88434,16384969133,73334,854
– income tax(3,543)(5,078)(1,298)(4,841)(5,078)
– profit after tax29,34128,950(1,298)84969128,89229,641
Earnings per share
– basic earnings per share in pence14.2314.67(0.64)0.420.3414.0115.01
– diluted earnings per share in pence13.6014.20(0.61)0.400.3313.3914.53
Group Statement of Financial Position
– deferred tax asset due in more than one year338548(338)548
– total non-current assets54,80139,669(338)54,46339,669
– inventories146,825121,0311,613764148,438121,795
– total current assets183,840150,4071,613764185,453151,171
– retained earnings56,37228,806(1,298)1,61376456,68729,570
– total equity attributable to shareholders116,03288,797(1,298)1,613764116,34789,561
– deferred tax liability due in more than one year960960
– total non-current liabilities33,82125,00196034,78125,001
– total equity and liabilities238,641190,076(338)1,613764239,916190,840
Group Statement of Cash Flows
– profit for the year before tax32,88434,16384969133,73334,854
– interest expense7,4258,373(849)(691)6,5767,682