Accountancy Age articles from July 2005

Accountancy Age archives from July 2005

Technology - War breaks out on software turf. Software providers are gunning for the larger accounting practices in a push for lucrative deals, writes Kevin Reed.
July 7, 2005... Competition is mounting for the business of large accounting practices as providers switch their attention away from the smaller firms. Iris and Digita - well known for providing software to smaller practices - are attempting to push up...

Technology - IT briefs.(information technology)(Brief Article)
July 7, 2005... Thames Valley-based accountants James & Cowper has ordered the latest internet BACS technology to help run its bureau operations. The firm, ranked 51st in last week's Accountancy Age firms' league table, chose Albany's BACS bureau software to...

Management consultancy - Outsourcing boosts share price. Study shows that outsourcing can seriously affect your company's perceived value, writes James Bennett.
July 7, 2005... Companies that announce outsourcing projects to the market could increase their share price by up to 10%, creating an estimated [pounds sterling]20bn of additional shareholder value to the FTSE all-share market index, according to research...

Management consultancy - And then there were three ...(IBM, Microsoft, Oracle)(Brief Article)
July 7, 2005... Over 80% of European financial services companies use part of IBM's application platform, making up a dominant trio of application infrastructure providers, according to research analysts Forrester. Forrester surveyed IT decision-makers at...

Management consultancy - game, set and match to IBM.(Wimbledon information technology contract)
July 7, 2005... Byline: James Bennett, editor of Management Consultancy. Every so often, the consulting industry receives a volley of criticism, claiming that 'the only purpose of a management consultant is to make a small fortune out of telling other...

Awards - Accountant of the year.(Timothy Copnell )
July 7, 2005... The pioneering work of Timothy Copnell of KPMG's Audit Committee Institute set him apart from the other contenders and saw him win the 2004 Accountant of the Year award. The award is designed to recognise organisations' rising stars. And...

The Debate - Easy to trip up. US-style audits in the UK will reduce technical quality, says Iain Richards. But we need a unified approach to restore public confidence, argues Jeremy Boadle.
July 7, 2005... For obvious reasons, investors have a significant interest in the quality of audits and auditing standards. Our on-going concerns about them and about international standards on auditing, in particular, have been the subject of criticism by Big...

Like it or not, the institutes have to work together.(Consultative Committee of Accountancy Bodies)
July 7, 2005... Given the apparent threats and counter-threats made by various member institutes of the Consultative Committee of Accountancy Bodies in recent weeks, you might expect to see the CCAB website playing host to more traffic than usual. Instead it's...

The corridors of power ...(London Chamber of Commerce appoints Michael Cassidy )(Brief Article)
July 7, 2005... Byline: Jon Ashworth, business features editor at The Times. Ten years ago, I accompanied a team from the Corporation of London on a trip to 'sell' the City as the best place in the world to do business. This modest affair involved flying...

Letter - Fair play to audit proposals.(Letter to the Editor)
July 7, 2005... As an ACMA I am not interested in doing audit work or working within the public sector, but I can see the potential benefits of having one all-inclusive institute. The petty squabbling over such things, as what it is going to be called, is...

Letter - Home truths.(Letter to the Editor)
July 7, 2005... We applaud Des Hudson, chief executive of the Scottish Institute, for telling Eric Anstee a few home truths about the proposed merger (23 June, page 27). Hudson feels that the CCAB is the correct body to represent the various accountancy...

Letter - Women give more than 100%.(Letter to the Editor)
July 7, 2005... My congratulations to Larking Gowen and Pridie Brewster who boast female partners of 600% and 750% respectively (Accountancy Age Top 50, 1 July, pages 17-21). However, there are in fact a total of six firms where male partners + female partners...

Letter - Few early birds.(Letter to the Editor)
July 7, 2005... There are a couple of misconceptions in 'Firms shun protection of LLP status' (7 July, page 1). Most firms that choose to become LLPs do so at the start of an accounting period. Although the LLP Act came into force four years ago, the SORP on...

Letter - All greek to me.(Letter to the Editor)
July 7, 2005... As a registered auditor since 1986 I was disturbed to read your lead article (2 June, page 1) expressing concern by leaders in our profession and institutions like the ACCA on the wording 'knowingly and recklessly give an audit opinion' in the...

Letter - Mean streets: there are plenty of dangerous places to live, but culture-filled Liverpool isn't one of them.(Letter to the Editor)
July 7, 2005... I'm not going to get up on a high horse as we scousers can take a joke. I'm not cancelling my subscription to Accountancy Age as I like the publication and find it useful. However, I wonder if, on reflection, the cartoonist of the strip...

Letter - A practice in Liverpool.(Letter to the Editor)
July 7, 2005... I have been in practice in Liverpool for 37 years and I can assure your readers that no one has attempted to shoot me, although maybe some inspectors of taxes might think that it is a good idea. I live in a city which is going to be the...

Insider - Profile: Jon Hale, the financial brains behind the summer festivals - Music man. It may turn over a relatively modest [pounds sterling]48m - but Mean Fiddler punches above its weight. After staging the Glastonbury festival, last week saw its takeover by Clear Channel given the green light. FD Jon Hale tells Paul Grant how he marries music and finance.(finance director )
July 7, 2005... Rock 'n' roll is all about living life on the edge. The history of modern rock music is littered with examples of those who have pushed it to the limit and sometimes, sadly, stepped over it. Think Jimi Hendrix, Elvis Presley, John Bonham, Jim...

Insight: branding - Make your mark. Last week, our Top 50 survey revealed that the market for accountancy services is booming. As a result, brand recognition will be one of the driving forces behind firms gaining a slice of the action. So what do we mean by a brand? asks Stephen Cheliotis.
July 7, 2005... Byline: Stephen Cheliotis, chairman of Superbrands Councils UK. Brands are an enigma - living entities ultimately controlled by consumers' perceptions. The majority of people understand branding as a product or company's corporate identify...

Insider - Overview - Work to rule. On the frontline: the pressure's on the FSA to prove the worth of financial regulation, writes Karen Day.(Financial Services Authority)
July 7, 2005... The last 12 months has seen the Financial Services Authority grapple with a dilemma: how to balance its statutory expansion while operating in a less than favourable climate as the government's love affair with regulation evaporates. Its...

Insider - Overview - Three steps to ... Building your personal brand.
July 7, 2005... Step 1. Become CEO of Me plc Regardless of age or position, we are CEOs of our own companies. By building your brand, you'll not only make a noteworthy contribution to your team's success - you'll also put yourself in a great bargaining...

Insider - Overview - buzzwords - Podcast. (noun) Downloadable audio file - other than music - for an MP3 player.
July 7, 2005... Just imagine the scene - your feet up on your desk, iPod headphones in place, when the managing partner appears as if from nowhere and confronts you with a stern and rather perplexed look. But there's no panic, as you're listening to a podcast...

Insider - Overview - FD's view: predict don't react.(finance directors)
July 7, 2005... Byline: Norman Green, vice-president of finance at Oracle UK, Ireland and South Africa. As the ICAEW celebrated its 125th anniversary last month, it stood at an historical juncture. In October, its members will vote on whether the...

Services - Adviser: Delegation's what you need. Rather than wasting precious time on mundane tasks, partners should delegate and concentrate on growing the business, write Phil Shohet and Andrew Jenner.
July 7, 2005... Byline: Phil Shohet and Andrew Jenner, directors of Kato Consultancy. Partners in independent accountancy practices record, on average, over 1,000 chargeable hours per annum, according to the recent Kato managing partner survey. What...

CCAB six patch up differences. Accountancy institutes pledge to work together in the wake of recent squabbles, writes Damian Wild.(Consultative Committee of Accountancy Bodies)
July 7, 2005... The six main UK institutes have pledged to work together, after a fractious period that has seen relations between some of the key bodies threaten to break down completely. At the last meeting of the six presidents, ACCA's Christopher...

Big Four set to see elusive double-digit fee growth.(Brief Article)
July 7, 2005... Byline: Alex Hawkes. Big Four firms are set for a bumper year in 2005, as modest growth registered in 2004 continues to accelerate. Rumours circulating the profession suggest the Big Four are set to follow solid fee increases in...

All eyes on Africa. Poverty in third world is high on the G8 summit agenda, for both the fake and real Tony Blair.
July 7, 2005... With climate change and debt relief on the agenda, energy companies and financial institutions are among the UK-based multinationals and advisers watching this week's G8 summit in Edinburgh closely for any signal that the talks will influence...

Surveillance group pores over figures. AIM-listed surveillance equipment group Petards has suspended its shares and withdrawn its group accounts for the year ending 31 December 2004, following the discovery of 'discrepancies' in the accounting for long-term contracts at one of its subsidiaries, writes James Bennett.(Brief Article)
July 7, 2005... The move on Tuesday came just three days before its accounts were due to be presented at its AGM. David Hayes, chief executive of Petards, told Accountancy Age that its auditors, KPMG, would issue a set of 're-audited 2004 accounts' when...

Auditors fear 'back door' regulation from Europe. European directive could see arrival of onerous rules, writes Paul Grant.(Brief Article)
July 7, 2005... Auditors are warning that Europe could bring in onerous US-style section 404 regulation 'by the back door' if proposals to be put forward later this year fail to be drafted carefully. The European Commission's proposals for the fourth...

CCAB seeks to protect SMEs. Accountancy's umbrella group, the CCAB, has appealed directly to chancellor Gordon Brown to ease the 'hardship' set to hit small firms and businesses due to the tax implications of a new accounting rule, writes Kevin Reed.(Consultative Committee of Accountancy Bodies)(small and medium size enterprises)(Brief Article)
July 7, 2005... In a letter sent to the chancellor, paymaster general Dawn Primarolo and HMRC chairman David Varney last week, the CCAB called for the effect of UITF Abstract 40 upon professional services companies to be minimised. The abstract, first...

Woolworths profit lost under IFRS.(international financial reporting standards)(Brief Article)
July 7, 2005... Byline: Paul Grant. High street retail group Woolworths has revealed that its post-tax profits would have virtually disappeared under international financial reporting standards last year, despite a sales figure of nearly [pounds...

In brief.(profits increases for British Airways )(stock market changes)(Chantrey Vellacott DFK launches marketing campaign )
July 7, 2005... Operating profits at British Airways have risen by [pounds sterling]16m, thanks to the switch to international financial reporting standards, the airline announced on Monday. Under IFRS, for the year ended March 31 2005 BA's operating profit...

Man Group highlights standards threat to financial services sector. Commission change under IFRS halves hedge fund's capital cushion, writes Alex Hawkes.(international financial reporting standards )(Brief Article)
July 7, 2005... Financial services companies could face a regulatory crunch as international financial reporting standards change the way they account for commission paid to intermediaries. Man Group, the world's largest quoted hedge fund, disclosed on...

KPMG backs gay rights campaign for workplace diversity. A KPMG board director, named on a Pink List of the most influential gay and lesbian people in the country, has led the firm in joining pressure group Stonewall's campaign to improve working conditions for gay employees, writes Gavin Hinks.(Brief Article)
July 7, 2005... The firm becomes the 100th member of the group's Diversity Champions project, joining the likes of the Walt Disney Company and Shell in promoting diversity in the workplace. KPMG's involvement is led by Ashley Steel (pictured), a director...

BDO joins ranks of Superbrands.(BDO Stoy Hayward)(accounting firm)(Brief Article)
July 7, 2005... Byline: Kevin Reed. BDO Stoy Hayward has become the first accounting firm outside the Big Four to be declared one the UK's strongest business brands. The firm has had a strong 12 months, topped when it became the only firm outside the...

Goodwill would cost HSBC [pounds sterling]275m.(Brief Article)
July 7, 2005... Byline: Kevin Reed. HSBC would have suffered a slump of $483m ([pounds sterling]275m) in profits before tax for 2004 under IFRS, equating to a 2.5% fall, according to figures restated on Tuesday. The banking giant's profit before tax...

G8 leaders must listen to public, say FDs.(financial directors)(Brief Article)
July 7, 2005... Byline: Damian Wild. UK finance directors have warned the G8 leaders meeting in Edinburgh this week to listen to popular opinion and eliminate third world debt. Some 58% of FDs who took part in this week's Accountancy Age/Reed Finance...

Acid test for convergence project. Experts say draft standard on business combinations is key to future of global standards, writes Paul Grant.
July 7, 2005... Global accounting convergence is to face an acid test in October with the release of a proposed new standard on both sides of the Atlantic. In the first major project of its kind, the International Accounting Standards Board and the US...

McCreevy may move on audit. EU internal market commissioner Charlie McCreevy has indicated a willingness to compromise with opponents of a proposed EU directive that would force listed companies to appoint an in-house audit committee, writes Keith Nuthall.(Brief Article)
July 7, 2005... Speaking to a conference on European corporate governance, in Luxembourg, McCreevy acknowledged the critics, whom he said had 'woken up somewhat late in the day'. He said: 'If the directive confirms the now well-established principle of an...

Multinationals left to sweat in summer limbo over tax cases.(Brief Article)
July 7, 2005... Byline: Alex Hawkes. A high-level tax group headed by the UK that aims to restrict the impact of European Court of Justice rulings on EU national exchequers will not meet until September or October. The UK government is leading...

Our news coverage gets gold. Accountancy Age has won two more prestigious international awards for its news coverage. Last April's report on the new-look Financial Reporting Council by Paul Grant and Rachel Fielding won gold for 'single news article'.(Brief Article)
July 7, 2005... 'A crisp, uncluttered layout enhances the well-written text in this professionally executed article,' the judges said of the story, adding: 'Great behind-the-scenes coverage. Good use of multiple sources. Graphics and text work well together to...

Debt financing turns wheels of business. Companies are neglecting to review how their hard-earned cash is treated in their focus on business growth, writes Nicholas Neveling.
July 7, 2005... Finance and cashflow have risen up the agenda among corporates over the past month, as Camaxsys, Thistle Mining and finance company Merchant House all experienced difficulties with working capital or financing arrangements. Camaxsys asked...

Company reports. FTSE companies pick and choose application of IFRS to suit conditions in their business.(Financial Times and the London Stock Exchange)(International Financial Reporting Standards)
July 7, 2005... Scottish and Southern Energy said that its adoption of IAS39 will have a 'mildly' net positive effect on the company's accounts. SSE also expanded on the effects of IAS12, revealing that it would increase the company's balance sheet by a little...

Analysis - More questions than answers. The FRC's report into audit quality gave the profession a clean bill of health - but the critics don't agree, writes Alex Hawkes.(Financial Reporting Council)
July 7, 2005... The FRC's report into the quality of audits must have cheered many in the profession. Not only did it speak glowingly of the quality of auditing in the UK, it also - not in the body of the report but in its absence, you might say - cleared any...

IFAC under fire over audit standards.(International Federation of Accountants)
July 7, 2005... Byline: Paul Grant. Later this month, the government is expected to announce its crucial decision on whether auditors will be allowed to negotiate proportionate liability with clients. Hopes of success had been high, but the chances of...

IFAC under fire over audit standards.
July 7, 2005... Byline: Paul Grant IFAC under fire over audit standards By Paul Grant Later this month, the government is expected to announce its crucial decision on whether auditors will be allowed to negotiate proportionate liability with...

The Debate - Building a diverse team. Firms should make it a priority to recruit and retain a diverse array of employees, writes Ashley Steel. There's a long way still to go, says Gavin Hinks.
July 14, 2005... Earlier this year, KPMG became the 100th member to join Stonewall's Diversity Champions Programme for employers. KPMG believes that all types of diversity and inclusion matter. Through membership of Stonewall, we hope to develop a better...

Opinion: Identity crisis.
July 14, 2005... In the wake of last Thursday's horrific attacks in London, the issue of ID cards is back on the agenda. Some would say it had never left - long before the bombings, acres of newsprint had been devoted to the controversy surrounding identity...

The corridors of power.(Africa and poverty eradication)(Brief Article)
July 14, 2005... Byline: Jon Ashworth, business features editor at The Times. All this talk about Africa and poverty made me stop and think. How many UK leaders, whether in politics or business, have actually been to Africa? And of those who have, how many...

Letters - School leavers can fill the gaps.(Letter to the Editor)
July 14, 2005... I read your front page story, 'Recruitment crisis stifles growth rates' (30 June, page 1) with interest. A number of firms have highlighted this problem to us over the last year or so, and are choosing to recruit school-leavers with good grades...

Letters - AIA protest.(Letter to the Editor)
July 14, 2005... I write with regard to the article 'Give the title "accountant" some meaning' written by John Davies, head of business law at ACCA. I am prompted to write by a number of Association of International Accountants members who are regular...

Letters - Slack on BACS.(Letter to the Editor)
July 14, 2005... It's over two years since BACS announced the migration to the new technology, BACSTEL-IP, and only 60% of businesses are ready (Crunch time for BACS users, page 10, 23 June). The remaining 10,000 risk failing to secure the help they need from...

Letters - Heat addled.(Letter to the Editor)
July 14, 2005... I put the recent merger letters down to the summer heat. Is it really about accrual accounting and depreciation, and do people still really think CAs are old, grey and arrogant, with a superiority complex? My last letter in Accountancy Age...

Letters - Missing a trick. Is the profession missing out on a good deal by its reluctance to make use of interim managers?(Letter to the Editor)
July 14, 2005... I was led to reflect by your recent article (Recruitment crisis stifles growth rates, 30 June, page 1), suggesting a recruitment crisis in the profession is preventing growth. One of the most intriguing aspects of the accountancy profession...

Insider - The bimoral society. In modern business, employees are under increasing pressure to balance moral obligation with their own self-interests, writes John Hendry.
July 14, 2005... When we were first told that 'greed is good' in the 1980s, the idea seemed shocking. But like much else of the Thatcher-Reagan era it is now taken more or less for granted. The word 'greed' is still pejorative, but self-interest as a driving...

Insider - Profile: FD of Berry Bros & Rudd, wine supplier to high society - On the grape vine. Life at a family-run wine importer and dealer has fulfilled all Hugh Sturges grape expectations. Not only does he side step many compliance issues and shareholder demands, writes David Rae, he also gets to work for the company that invented Cutty Sark whisky.(finance director)
July 14, 2005... Working for a family-run business can present an interesting set of challenges. But working for a 300-year-old family-run business with a group turnover of [pounds sterling]180m, assets of [pounds sterling]70m, 280 employees and a client-base...

Insider - Insight: employee references - Putting pen to paper. The fear of litigation and employment tribunals is putting employers off writing a reference for even valued staff. But it doesn't have to be that way, writes Pam Rogerson.
July 14, 2005... Byline: Pam Rogerson, head of personnel for Employment Law Advisory Services. There was a time when your two referees were among the strongest parts of your CV. Better than qualifications and details of your school days, these were the...

Insider - Overview - Conciliation and expansion. On the frontline: ACCA is looking to overseas expansion with the election of Forster, writes Karen Day.(Christopher Forster, Association of Chartered Certified Accountants)
July 14, 2005... The world of accountancy has never been so exciting. The prospect of a merger has intensified traditional rivalries between the six main accountancy bodies, leading to several bad tempered and rather public exchanges. But while relations...

Insider - Overview - Three steps to Stimulating commercial innovation.(Brief Article)
July 14, 2005... Step 1: Set up a room 101 Get rid of things when they are out of date and that have proved to be unpopular. If you had a room 101 in your firm, what would you put in it. Don't let old things obstruct the way and put a block on new...

Insider - Overview - Buzzwords - Ohno-second. (noun) The fraction of time it takes to recognise you've committed an almighty howler.(Brief Article)
July 14, 2005... To use a strict temporal measurement, an ohno-second is just a little longer than a nanosecond. But in reality it feels like hours and tastes like fear. It's the time that leads up to the crushing realisation that you have just ranted...

Insider - Overview - Constructive criticism.
July 14, 2005... Byline: Philip Hesketh, professional speaker on the psychology of persuasion. Have you ever been offered any 'constructive criticism'? Most people have. But if you ask them which of those two words they pick up on most and how they feel,...

Awards 2005 - Corporate finance - Deal of the year.(KPMG Consulting Inc.)
July 14, 2005... Last year saw the very first winners of the Accountancy Age Award for corporate finance deal of the year, a category that proved an enormous success. KPMG took the honours for its work turning around the fortunes of convenience store chain...

Services - Adviser: Left exposed. Service businesses have been left facing a potentially damaging one-off tax charges under UITF40. John Davies looks at the fallout and calls for a compromise.
July 14, 2005... Byline: John Davies, head of business law at ACCA. Few new rules can have had as much impact on practising accountants as UITF40, dealing with revenue recognition in service contracts. In force since June, some might say its greatest...

Remembrance Thursday. A two-minute silence will be observed at noon today to remember the victims of last week's horrific terrorist attacks in London.(Brief Article)
July 14, 2005... Morley and Scott, the mid-tier firm based on Tavistock Square, scene of one of last week's terrorist bombings, has confirmed that staff will have access to counselling, writes Alex Hawkes. The Top 50 firm found itself at the centre of the worst...

Revenue targets City bonuses after court win. Taxman looks to recoup hundreds of millions in unpaid tax from employee benefit trusts, writes Alex Hawkes.(tax policy of Her Majesty's Revenue and Customs of United Kingdom)
July 14, 2005... Investment banks are bracing themselves for an assault from the taxman on employee benefit trusts, used to allow them to avoid tax when paying huge bonuses to City bankers. Following a crucial legal decision last week, tax advisers said the...

Public sector told: improve financial reporting.(surveys)(Brief Article)
July 14, 2005... Byline: Karen Day. The public sector does not take the preparation and monitoring of its accounts seriously enough and its poor culture of financial reporting needs to be urgently addressed, the Audit Commission warned this week. In...

PA Consulting bill for ID cards to bust [pounds sterling]18m estimate. Development costs already top forecasts, write James Bennett and Kevin Reed.(identity)(contract with United Kingdom. Home Office)(Brief Article)
July 14, 2005... The Home Office has conceded that the estimates for development work by PA consulting on the government's controversial ID card scheme is set to bust its [pounds sterling]18.74m forecast. The department's admission came after Accountancy...

Taxes are forever. Inspectors were divided on whether Ian Fleming and his estate owed tax on film earnings.(investigations by United Kingdom. Board of Inland Revenue)(Brief Article)
July 14, 2005... Ian Fleming, author of the James Bond novels, may have been a master of the spy thriller, but he did not avoid suspicion from government himself - for the handling of his tax affairs, writes our parliamentary correspondent. Inland Revenue...

News in brief.(market research of securities industry)(formal complaint by European Union. European Commission)(financial management of Berry Brothers and Rudd Ltd.)
July 14, 2005... A reluctance to grapple with the onerous corporate governance rules in the US may have contributed to the London Stock Exchange's best month for flotations in four years. June saw 15 IPOs on the LSE's main market raising [pounds sterling]1.9bn,...

Sarbox hits Big Four fee income.(Sarbanes-Oxley Act of 2002)(Brief Article)
July 14, 2005... Byline: Nicholas Neveling. Research by mid-tier firm BDO Stoy Hayward has claimed that Sarbanes-Oxley cost the UK's Big Four audit firms [pounds sterling]318m in lost consultancy fees over the last two years, as governance rules...

Leather and Wood to chase Olympic dream. Big Four pair are in the running for London 2012 position, writes Alex Hawkes.(beliefs of Neil Wood and David Leather)
July 14, 2005... Two Big Four partners could lead the race for what one termed 'the job of a lifetime' - running the finance function of the 2012 Olympics. Neil Wood, who led the finance team that last week successfully won the bid to host the games, said...

Investors fear IFRS surprise.(international financial reporting standards)(Brief Article)
July 14, 2005... Byline: Kevin Reed. Investors have raised concerns over what may be contained in the vast number of statements under IFRS still to be published by UK companies. The fears emerged as investors braced themselves for the coming season of...

Calls for inheritance tax overhaul.(tax policy of United Kingdom. Parliament. House of Commons. Select Committee on Public Accounts)(Brief Article)
July 14, 2005... Byline: Our parliamentary correspondent. Inheritance tax should be subjected to a major simplification exercise and severe penalties introduced for those who try to cheat the system, according to the influential Commons Public Accounts...

Loan company hit by impairment.(financial results of Provident Financial PLC)(Brief Article)
July 14, 2005... Byline: Nicholas Neveling. Disappointing debt collection and stricter accounting under IFRS will force loan provider Provident Financial to record a hit of between [pounds sterling]15m and [pounds sterling]20m in its 2005 accounts. ...

Directors should call in lawyers to avoid OFR claims.(operating and financial review)(management of financial statements)(Brief Article)
July 14, 2005... Directors of listed companies should seek legal advice before drawing up operating and financial review statements or face the risk of being held liable for comments about the future health of their business, CIMA warned this week, writes...

Ward leaps to defence of IFAC. Global body dismisses investors' claims that standards will hit audit quality, writes Paul Grant.(beliefs of Graham Ward of International Federation of Accountants)
July 14, 2005... The head of accounting's global body has hit back at fierce criticism from investors over the creation of audit standards they claim will severely damage audit quality. Graham Ward, president of the International Federation of Accountants,...

IASB blocks interference from US.(beliefs of David Tweedie of International Accounting Standards Board)(Brief Article)
July 14, 2005... Byline: Paul Grant. European bodies worried that accounting convergence will mean the adoption of US-style standards have been reassured by the head of the global accounting standards setter. Speaking to the accounting regulatory...

IAS39 carve out removed after EC endorsement. The long-running standoff over IAS39 between the European Commission and the International Accounting Standards Board has been resolved, writes Paul Grant.(European Union. European Commission)(Brief Article)
July 14, 2005... The EC's Accounting Regulatory Committee on Friday unanimously voted to recommend the endorsement of an amended version of the standard relating to the controversial fair value option. The option was one of two areas that was 'carved out'...

Finance week - Investors urged to examine pension figures. Experts warn investors to look beyond the large pension deficit figures and consider them in the context of other indicators, writes Nicholas Neveling.(analysis of pension funds)
July 14, 2005... Analysts have warned investors to look beyond FRS17 disclosures to assess the true impact of pension deficit figures on company accounts, after an analysis of pension shortfall in the FTSE100 revealed some companies were billions of pounds shy....

Finance week - Company reports. AGA lists ingredients for successful pre-tax profits increase, while Shell hopes to settle employee dispute.(cases against Shell Oil Co.)(revenue forecasts of Aga Foodservice Group PLC and Management Consulting Group PLC)
July 14, 2005... Oil giant Shell announced that a settlement has been reached in a class action and related litigation brought against the company by employees participating in certain US employee savings plans, which are subject to the Employee Retirement...

Corporate Finance - Companies toast arrangement schemes. Tax-efficient schemes of arrangement, used for mergers, are the talk of the town, writes Alex Hawkes.(trends in acquisitions and mergers)(Brief Article)
July 14, 2005... Allied Domecq's merger with Pernod Ricard raises an interesting question: are schemes of arrangement, used in this merger, becoming more popular? Allied's deal, Pernod says, involved no accountants working on the corporate finance side -...

Corporate Finance - Who will join the party?(initial public offering of PartyGaming)
July 14, 2005... Byline: Gavin Hinks, deputy editor of Accountancy Age. Forgive me, but I have to return to the flotation of PartyGaming, the online gaming company that raised billions of pounds in an IPO last month. The company instantly became one of...

Corporate Finance - Public to private deals set records.(statistics of buyouts)(Brief Article)
July 14, 2005... Public to private deals have reached their highest levels since 2000, with [pounds sterling]4.9bn spent so far this year. Compiled by the Centre for Management Buy-Out Research, the figures also showed that public to private buyouts and...

Technology - Pru sparks outsourcing backlash. Companies choose to switch back to 'in-sourcing' IT services, write Mark Samuels and Kevin Reed.(information management of Prudential Group Inc.)
July 14, 2005... Businesses have begun to rethink the value of outsourced operations, following Prudential's move towards insourcing some of its business processes. The financial services provider is bringing part of its outsourced IT operations back...

Technology - IT briefs.(reports of Butler Group)(Hiscox PLC's contract with Cognos Inc.)(Brief Article)
July 14, 2005... Fears have risen over a 'scattergun approach' to IT security, according to research analyst Butler Group. Its report, Security Management, found that businesses deploying and using a range of individually-focused protection software was...