Accountancy Age articles from February 2009

Accountancy Age archives from February 2009

The great divide.
February 5, 2009... Byline: Keith Nuthall The great divide Back in November 2008, long before the accession of Barack Obama to the US presidency, world leaders gathered together under the G20 banner to forge a common response to the ongoing financial...

An unfair cop.
February 5, 2009... Byline: McGrigors An unfair cop According to figures from BDO Stoy Hayward there has been a 14% reported increase in corporate fraud in 2008. This is likely to grow as the recession deepens and fraud and its detection increases. ...

routes out of trouble.
February 5, 2009... Byline: Bhaljinder routes out of trouble A significant number of professional partnerships are currently facing financial pressures, including a significant number of small to medium sized firms. Professional partnerships such as...

Recovery process.
February 5, 2009... Byline: David Jetuah Recovery process Two visitors to Zolfo Cooper Europe's HQ cast a critical eye around the offices. 'Not much change as far as I can tell,' says one. For Simon Freakley and his 200-strong team, it's exactly that:...

Parachuted in.
February 5, 2009... Byline: Smith and williamson Parachuted in In these turbulent times, all kinds of businesses are prone to finding themselves in some degree of difficulty. Although crisis events are unpredictable, in the context of the present...

Go with the flow.
February 5, 2009... Byline: bdo stoy hayward Go with the flow As we all know only too well many businesses are facing difficulties in the current economic climate. A reduction in the supply of readily available funding means that many companies of...

To boldly go.
February 5, 2009... To boldly go Risk has become a dirty word. In the current economic climate, many firms instinctively seek to protect past successes instead of commercialising radically new products. But businesses bold enough to develop a...

Honourable members?
February 5, 2009... Byline: Various Honourable members? MPs do not pay tax on their reimbursed expenses -- and that's right as long as those expenses were properly incurred. With no obligation to retain receipts as evidence of the expenses they have...

Taxman treads a fine line on debt.
February 5, 2009... Byline: Judith Tydd Taxman treads a fine line on debt Tax Judith Tydd As the recession deepens MPs are asking whether HM Revenue & Customs is doing enough to help struggling businesses that are falling behind on their taxes....

Every little helps.
February 5, 2009... Byline: Gavin Hinks Every little helps Laurie McIlwee has landed the biggest FD's job in UK, if not world, retail in becoming group finance director of Tesco. But as glamorous as that sounds, becoming FD of a [pounds sterling]47bn...

Eat iti?1/2.
February 5, 2009... Byline: Kevin Reed Eat ita[bar] The Fishbourne Inn, Isle of Wight There's often nowhere better to conduct an informal business chat than a quiet country pub.The Fishbourne Inn was certainly that. On the day of our visit we were...

Pre-pack administration Catch-22 flagged up.
February 5, 2009... Byline: David Jetuah Pre-pack administration Catch-22 flagged up David Jetuah A lack of legislative support in pre-packaged administrations has been criticised, but the effort to draw up rules governing there use has been branded...

Hitting the wall.
February 5, 2009... Hitting the wall Back in November 2008, long before the accession of Barack Obama to the US presidency, world leaders gathered together under the G20 banner to forge a common response to the financial crisis. As all accountants know, a...

COMPANY REPORTS.
February 5, 2009... COMPANY REPORTS Regulation fears dismissed Concerns over regulation levels increasing drastically as a result of the financial crisis are unfounded, as regulation has only increased by 6% year on year, according to a survey by BDO...

Time to rethink bank audits, says accounting professor.
February 5, 2009... Byline: Christian Doherty Time to rethink bank audits, says accounting professor Audit Christian Doherty Are the labyrinthine structures of high street banks, and their exotic financial instruments, becoming too complicated...

on the money with Gavin Hinks.
February 5, 2009... on the money with Gavin Hinks Sam DiPiazza, CEO of PwC International, has been in India trying to sort out the firm's involvement in Satyam's $1bn accounting fraud scandal. He didn't go when the news broke, despite...

Time to rethink bank audit from scratch The auditing of banks is under the microscope and last week the House of Commons Treasury committee heard some radical proposals for dealing with it. Effectively the proposal, from professor Prem Sikka, at Essex Uni.
February 5, 2009... Byline: Accountancy Age Time to rethink bank audit from scratch The auditing of banks is under the microscope and last week the House of Commons Treasury committee heard some radical proposals for dealing with it. Effectively the...

Sock it to i?1/2em.
February 5, 2009... Byline: TS Sock it to 'em Of course it's all in a day's work for an administrator to squeeze every last drop of value out of a collapsed business by flogging, if at all possible, everything down to the last paper clip. (Did all...

Profits could take massive hit from final salary changes.
February 5, 2009... Byline: Nick Huber Profits could take massive hit from final salary changes Nick Huber Proposed changes to final salary pension accounting rules could wipe out tens of billions of pounds of company profits, a pension expert has...

Record online filing response.
February 5, 2009... Byline: Judith Tydd Record online filing response Judith Tydd HM Revenue and Customs has exceeded its forecast for online filing of self-assessment tax returns by about half a million. A total of 5.8m taxpayers filed online by...

Rival backs Sage on security.
February 5, 2009... Byline: Rachael Singh Rival backs Sage on security Rachael Singh After a security scare forced it to withdraw a new web software product, Sage has received support from an unlikely source -- one of its rivals. Last month...

Satyam scandal casts shadow over PwC India.
February 5, 2009... Byline: Raghevendra verma and Gavin Hinks Satyam scandal casts shadow over PwC India Raghavendra Verma and Gavin Hinks The PricewaterhouseCoopers partners arrested in connection with the $1bn ([pounds sterling]700m) Satyam...

Tax haven hedge funds threatened.
February 5, 2009... Byline: David Jetuah Tax haven hedge funds threatened David Jetuah The head of restructuring giant Zolfo Cooper expects thousands of hedge funds to fold in 2009. Simon Freakley told Accountancy Age that the company, which has...

Parmalat ruling leaves global networks exposed.
February 5, 2009... Byline: David Jetuah Parmalat ruling leaves global networks exposed David Jetuah A US ruling that Deloitte could be liable for the actions of its Italian network over the Parmalat fraud will make global firms more vulnerable to...

sit-in continues at Waterford factory Workers at Wedgwood Waterford were continuing on their sit-in protest at the pottery and glassware factory as administrator Deloitte carried on talks with possible buyers, as Judith Tydd writes. A spokeswoman for Del.
February 5, 2009... Byline: Judith Tydd sit-in continues at Waterford factory Workers at Wedgwood Waterford were continuing on their sit-in protest at the pottery and glassware factory as administrator Deloitte carried on talks with possible buyers,...

R&D tax credits attractive to business Cost savings delivered by the research and development tax credit have doubled since 2005, according to a survey by the CBI. The R&D credit reduced cost savings by 4% in 2005. The figure has since increased to an ave.
February 5, 2009... Byline: Judith Tydd R&D tax credits attractive to business Cost savings delivered by the research and development tax credit have doubled since 2005, according to a survey by the CBI. The R&D credit reduced cost savings by 4% in 2005....

Firms to get top dollar from administrations.
February 5, 2009... Byline: David Jetuah Firms to get top dollar from administrations David Jetuah PricewaterhouseCoopers and Deloitte have raked in more than [pounds sterling]50m between them to unravel two of the biggest and most high profile...

Channel 4 probes ageism in accounting.
February 5, 2009... Byline: Gavin Hinks Channel 4 probes ageism in accounting Gavin Hinks A TV investigation into age discrimination will feature a 56-year-old accountant competing against his 25 year-old daughter to see who gets the most job...

KPMG moves to encourage more staff to sign up to four-day week.
February 5, 2009... Byline: Nick Huber KPMG moves to encourage more staff to sign up to four-day week Nick Huber KPMG has sweetened the terms of its four-day a week flexible work offer in a bid to encourage more of its UK 11,000 staff to sign up. ...

UK accountants near top of international stress league.
February 5, 2009... Byline: Nick Huber UK accountants near top of international stress league By Nick Huber British accountants are more stressed about their job prospects and the economy than most of their international counterparts, according to a...

Bid for a star turn.
February 5, 2009... Byline: TS Bid for a star turn Accountants are a square-jawed, firm-buttocked bunch in TS's eyes, but Digita, the accounting software provider is offering a digital makeover to make them look like their favourite pop star. ...

View from the board: Kings of the hill.
February 12, 2009... Byline: mark freebairn view from the board: Kings of the hill The market looks pretty interesting right now -- can't raise money, cash is king, private equity sitting on their hands. Surely it's time for everyone to head for the...

Now and then: a day in the life . . .
February 12, 2009... Byline: various Now and then: a day in the life... 1969 Barry Lewis Talk to Barry Lewis about 1969 and it's clear he fondly remembers a year when the Beatles topped the charts with Get Back, film fans queued to see The...

confidence trick.
February 12, 2009... Byline: andrew butter confidence trick The first time mark to market was put into the spotlight was when Enron collapsed; a key tool deployed for this confidence trick was 'marking to market' the value of future revenues from gas...

doorstep challenge.
February 12, 2009... Byline: Kevin Reed doorstep challenge sub-prime doorstep lenders shouldn't be thriving in the current climate. kevin reed discovers how Provident Financial FD Andrew Fisher is bucking the trend A debt collector with a...

People and moves...
February 12, 2009... Byline: Kevin Reed People and moves... Job to die for: Medicash FD Michael Lawrie-Simmons takes on the finance director role at Medicash, the not-for-profit healthcare cash plan provider, to get our gong for job of the week. He...

uncomfortable truth.
February 12, 2009... Byline: Gavin Hinks uncomfortable truth John McFall, chairman of the House of Commons Treasury committee, is supervising its examination of banks in the financial crisis. But this also includes the system of bank audits. His...

Wedgwood sit-in is the first of many.
February 12, 2009... Byline: David Jetuah Wedgwood sit-in is the first of many insolvency David Jetuah The occupation of a Waterford Wedgewood factory by workers in protest over the company being put into administration represents a new worry for...

Revenue authorities clash over unpaid tax from transfer pricing.
February 12, 2009... Byline: Bob Reynolds Revenue authorities clash over unpaid tax from transfer pricing tax Bob Reynolds Tax disputes over multinationals' transfer pricing schemes are usually tortuously complicated and protracted. Now bickering...

China cautious over Westi?1/2s fair value stance.(use of international financial reporting standards)
February 12, 2009... Byline: Mark Godfrey China cautious over West's fair value stance Though its top trading partners continue to stick with the fair value or mark-to-market accounting principle dictated by international financial reporting standards...

Short-sighted solution.(management of business enterprises)
February 12, 2009... Byline: Robert Bruce Short-sighted solution If there is one thing we are all supposed to have learned from the credit crunch, it is that short term is bad and long term good. Or, to put it in a rather more sophisticated way, while...

Fraud on the increase as recession takes hold.
February 12, 2009... Byline: Judith Tydd Fraud on the increase as recession takes hold Judith Tydd Finance directors need to ensure their internal controls and risk management systems are robust as experts predict the level of corporate fraud will...

Taking liberties.
February 12, 2009... Byline: David Vine Taking liberties It's no surprise that Harriet Harman wanted to exempt MPs' expense claims from the Freedom of Information Act. Permitting taxpayers to see how their money is spent within a fundamentally flawed...

CIOT passed finalists.
February 12, 2009... CIOT passed finalists PRIZEWINNERS The Institute Medal for the best overall performance across all four papers: Benjamin Carlyle Grist (Dixon Wilson Chartered Accountants, London). The Ian Walker Medal for the paper on General...

eat it...(Bertorelli)(Restaurant review)(Brief article)
February 12, 2009... Byline: Kevin reed eat it... Bertorelli, Plough Place, London EC4 In an area thick with accountants and lawyers, this branch of upmarket Italian chain Bertorelli should be offering a superior business lunch. On our visit, though,...

ONLINE.
February 12, 2009... Byline: Nick Huber ONLINE This week's top stories on accountancyage.com/sector BDO grows China presence BDO International said it has more than doubled its presence in China, after Shu Lun Pan Management Co, one of...

expert help.
February 12, 2009... Byline: Gavin Hinks expert help What skills are needed? Martin Williams, managing director at credit information specialist Graydon UK To win this war of creditability, you have got to be realistic and have an understanding...

Diva Dave leaves it late.(Dave Hartnett arrives late at Commons committee meeting)(Brief article)
February 12, 2009... Byline: Judith Tydd Diva Dave leaves it late Scheduled to address a discussion at a recent Commons committee meeting, chairman Edward Leigh MP was none too impressed by a notable absentee -- HMRC's permanent secretary for tax, Dave...

on the money with Gavin Hinks.(Brief article)
February 12, 2009... Byline: Gavin Hinks on the money with Gavin Hinks I am left quite unsettled by the conclusions of Channel 4's investigation into age discrimination on Monday (9 Feb). It asked Martin Lloyd-Penny, a friend of...

COMPANY REPORTS.(Unilever Group opts not to issue company report)
February 12, 2009... Byline: Nick Huber COMPANY REPORTS Projections in the dark Unilever has decided not to issue performance projections because of the uncertainty in the economic climate. The FTSE100 company said it would not be releasing...

Keeping up standards.(Letter to the editor)
February 12, 2009... Byline: various Keeping up standards While I support global reporting and auditing standards and, in principle, would like to see a level playing field for other market regulation, I am not convinced that any global regulator or...

Accountants given green reporting guidance.
February 12, 2009... Byline: Rachael Singh Accountants given green reporting guidance Rachael Singh Accountants are being encouraged to improve their knowledge about environmental reporting as companies and public bodies face growing pressure to...

Go on the charm offensive.(Brief article)
February 12, 2009... Byline: TS Go on the charm offensive If the recession has been making you think twice about whether you should spend money on that cab home from the party, or grab a quick pint in the local or even whether you should have that extra...

Squatters defeated in foamy war.(eviction of squatters in company property)(Brief article)
February 12, 2009... Byline: TS Squatters defeated in foamy war Who'd be in administrator? If you haven't got to deal with irate creditors and unions, there's the added threat of cheeky blighters squatting on company property. One IP recalls a...

Fisher on...(portfolio management)(Brief article)
February 12, 2009... Fisher on... His rolea[bar] Take a look at my portfolio. It's everything from tax to treasury, to accounting to the whole of the legal function to investor relations, so it is a pretty full portfolio. A fundamental -- and early --...

ICAS disaster.(use of Scotland's currency)(Institute of Chartered Accountants of Scotland)(Brief article)
February 12, 2009... Byline: Kevin Reed TS has it on good authority that disaster has struck at ICAS's 'garrison' in London. Its business centre at No 1 Cornhill, in the City, took a distinctly Sassenach approach to one of its members last week. The said...

Restaurant reviews.
February 12, 2009... Byline: Kevin Reed What's up with you miserable lot? OK, so we're in a recession, but that's no excuse for you not getting out there hob-knobbing with your more-valuable-than-ever clients and -- perish the thought -- potential new clients....

Short-termism hits marketing morale.
February 12, 2009... Byline: Christian Doherty Short-termism hits marketing morale Christian Doherty Marketing staff within firms are suffering from low morale as the recession bites, with nearly a quarter actively looking for a new job. Eighty...

Tant heads KPMG audit.
February 12, 2009... Byline: David Jetuah Tant heads KPMG audit David Jetuah KPMG has appointed Oliver Tant as its UK head of audit. He takes over from Richard Bennison, who recently became chief operating officer of KPMG Europe. 'I'm proud to be...

Consultation to start on taxpayersi?1/2 charter.
February 12, 2009... Byline: Judith Tydd Consultation to start on taxpayers' charter Judith Tydd The long-delayed taxpayers' charter has moved a step closer after the government said it would consult the public on its plans. The charter, which has...

Mazars forced to axe jobs.
February 12, 2009... Byline: Kevin Reed Mazars forced to axe jobs Kevin Reed Mazars has become the latest firm to announce plans to cut jobs as it predicts flat growth for 2009. The top 20 firm has begun to make a 'less than 5%' reduction in its...

Brittaini?1/2s defection is a major coup for Deloitte.
February 12, 2009... Byline: Rachael Singh Brittain's defection is a major coup for Deloitte Rachael Singh Louise Brittain, one of the UK's highest profile personal insolvency specialists, is to leave Baker Tilly to join Deloitte. Brittain, who...

HMRC defends debt collection outsourcing.
February 12, 2009... Byline: Judith Tydd HMRC defends debt collection outsourcing Judith Tydd A proposal by HM Revenue and Customs to outsource some of its debt collection service to private-sector suppliers could force struggling businesses to close,...

Half-year reports improvement.
February 12, 2009... Byline: Christain Doherty Half-year reports improvement Christian Doherty UK companies are producing half-year reports more quickly and in a greater depth, according to Deloitte. On average it takes 49 days to...

Litigation fear drives up cost of PI insurance.
February 12, 2009... Byline: David Jetuah Litigation fear drives up cost of PI insurance David Jetuah Firms are likely to see a rise in the cost of professional indemnity insurance this year, as clients resort to litigation against their advisers. ...

Profession profits from soaring insolvencies.
February 12, 2009... Byline: David Jetuah Profession profits from soaring insolvencies David Jetuah Firms expect to make record revenues from their business recovery arms as the economic climate worsens. Insolvency Service figures released last...

Satyam picks KPMG for clean-up job.
February 12, 2009... Byline: RAGHAVENDRA VERMA Satyam picks KPMG for clean-up job Raghavendra Verma KPMG has won a contract to clean up the accounts of scandal-hit Satyam, the Indian IT outsourcing giant that has been hit with an alleged $1bn...

m&s tastes victory in teacake case Marks & Spencer has won a long-running battle to be fully repaid for mistakenly charged VAT on its teacakes. HMRC had earlier agreed that it had wrongly classed M&Si?1/2 teacakes as biscuits between 1973 and 1994, during whi.
February 12, 2009... Byline: Judith Tydd m&s tastes victory in teacake case Marks & Spencer has won a long-running battle to be fully repaid for mistakenly charged VAT on its teacakes. HMRC had earlier agreed that it had wrongly classed M&S' teacakes as...

Out of the frying pan into the fire as resturaunts begin to feel the crunch.
February 12, 2009... Byline: Judith Tydd Out of the frying pan into the fire as Restaurants begin to feel the crunch The hospitality sector is being hit hard by the credit crunch and several high-profile restaurateurs are feeling the pinch, writes Judith...

Huge demand for flexible working at KPMG.
February 12, 2009... Byline: Nick Huber Huge demand for flexible working at KPMG Nick Huber Nearly 80% of KPMG's 11,000 UK staff have applied to work a four-day week or take extended unpaid leave, according to a spokesman for the firm. The...

White Young Green.
February 12, 2009... Byline: DAvid Jetuah Backgrounder: White young Green It's all change again at White Young Green, as the company makes move to shore up the board in the wake of the economic climate. To 'strengthen further the executive management...

Snow figures show a lack of home work This recession may be the first to test the global economy i?1/2 but therei?1/2s more at stake than that. Iti?1/2s also the first since the corporate blame culture took hold. It reached what will hopefully be its nadir last Monda.
February 12, 2009... Byline: damian wild Snow figures show a lack of home work This recession may be the first to test the global economy -- but there's more at stake than that. It's also the first since the corporate blame culture took hold. It...

The analystsi?1/2 view.
February 12, 2009... Byline: Kevin Reed The analysts' view Evolution Securities Recommendation: ADD It is clear that the business continues to benefit from strong demand as the economic environment deteriorates and competition withdraws from the...

Ditch the disc?
February 19, 2009... Byline: Lesley Meall Ditch the disc? On-demand offerings for small businesses now include software and systems for bookkeeping and accounting, backup and data storage, customer relationship management, email security, online...

fighting talk.
February 19, 2009... Byline: Michelle Perry fighting talk new uk200 group president kevin dickens tells michelle perry, why it is time to extend credit and take risks again If ever there was a way to give young people the incentive to study hard, a...

Moving forward: Buck up.
February 19, 2009... Byline: Lynn Williams Moving forward: Buck up Well, we're all getting used to the recession by now and perhaps even starting to find our feet again. Delayed shock, though, can trigger unexpected feelings ranging from anger to...

Live and learn.
February 19, 2009... Byline: Stewart Smyth Live and learn As an academic, my outlook on life is framed through the idea of learning from previous experiences with a view to advancing human behaviour. So the current financial crisis poses a problem in that...

M&A begins to show signs of recovery.
February 19, 2009... Byline: Bob Reynolds M&A begins to show signs of recovery M&A Bob Reynolds After flatlining the UK merger and acquisition market has begun to show signs of a gradual recovery. The UK M&A market slowed last year and...

Brain gain.
February 19, 2009... Byline: eilert hanoa With Britain in recession, managers of small businesses must ensure their companies are well positioned to weather the downturn. The ability to access and rapidly evaluate all aspects of a company's performance is...

Audit firms feel the squeeze as competition ramps up.
February 19, 2009... Byline: Michelle Perry Audit firms feel the squeeze as competition ramps up Audit Michelle Perry Companies have begun to review their audit contracts in an effort to cut costs in response to the economic downturn, senior...

Restaurant trade prepares to get burned.
February 19, 2009... Byline: Judith Tydd Restaurant trade prepares to get burned Insolvency Judith Tydd This year looks set to be a busy one for specialists in the hospitality industry as consumers cut discretionary spending. The grim trading...

BDOi?1/2s big headache.
February 19, 2009... Byline: Michelle Perry BDO's big headache As a US lawyer for an established law firm you are usually encouraged to avoid attacking America's corporate elite as they tend to be the clients who pay the bills. But Steven...

On her majestyi?1/2s service.
February 19, 2009... Byline: various On her majesty's service If HMRC seriously want to keep on top of website problems they could monitor Twitter to note the references to 'HMRC, 'taxman', 'Inland Revenue', 'file my tax return', 'tax office', 'pay my...

People and moves...
February 19, 2009... Byline: Rachael Singh People and moves... Job to die for: McBains coOper FD Patricia Crittenden is recruited to the finance director role at consultancy company McBains Cooper bagging our job of the week. Crittenden was previously...