Accountancy Age articles from June 2005

Accountancy Age archives from June 2005

Technology - Prepare for The War of the Nerds.(small accounting services, threat from software )(Industry Trend or Event)(Brief Article)
June 2, 2005... Brace yourself accountants, your services are required. But don't get too carried away, or even expect a whopping great influx of clients. The business software industry is after the one thing money (alone) can't buy - your influence as a...

Technology - IT holds key to public sector efficiency targets.(information technology)(Brief Article)
June 2, 2005... The public sector must follow the lead of business and use IT to streamline back-office functions such as finance in a order to meet government efficiency targets. The call for better use of technology in areas such as e-procurement and...

Technology - Accountants key source of buying advice.(Brief Article)
June 2, 2005... One in three small business owners relies on their accountants for accounting software purchasing decisions, according to a survey by MYOB. But just one in five sole traders uses any kind of accounting software, and 3% admit to having no formal...

Awards 2005 - Public sector Finance team.
June 2, 2005... Public and voluntary sector finance teams are not alone in having undergone radical change in recent years. But the way in which they have embraced those changes would put many of their more commercial peers to shame. Indeed last year's...

The Debate - International incidents. Countries altering or partially adopting IFRS is certainly not ideal, says Ken Wild. But the benefits of an IFRS framework are enough, writes Caroline Beer.(International Financial Reporting Standards)
June 2, 2005... The adoption of IFRS is a landmark move towards global financial reporting, which provides users of financial statements with greater comparability and a common reporting language. We cannot expect change on such a scale to be without its...

Opinion - Royal command performance should be a rallying cry to us all.
June 2, 2005... Having endured brickbats over previous speeches to doctors and architects, Prince Charles risked incurring the wrath of accountants last week. In urging the finance community to do more to create a framework for measuring - and ensuring -...

Jon Ashworth - The corridors of power ...(Dianne Thompson, Camelot Group PLC)(People)(Brief Article)
June 2, 2005... Byline: Jon Ashworth, business features editor at The Times. What does Dianne Thompson, chief executive of lottery operator Camelot, have in common with PY Gerbeau, the loveable 'gerbil' who ran the Dome? A trendy hairstyle for one, though...

Letters - Time for a reality check.
June 2, 2005... I read the debate on flexible hours with growing irritation (26 May, page 18). Since my husband returned to his first profession as a mechanical engineer two years ago, he has worked for three companies, all through agencies. The attitude...

Letter - It pays to read on.(Letter to the Editor)
June 2, 2005... I read with interest your leader 'Small businesses suffer as more companies turn the screw' (5 May 2005, page 16), which focused on the late payments epidemic among UK businesses. Late payments have the potential to cripple the SME sector,...

Letter - Risky business.(Letter to the Editor)
June 2, 2005... An AMD survey of more than 100 solicitors and accountants found that at least half were not concerned that they might be exposing their client relationships to third-party risk by using IFAs. Yet with depolarisation on 1 June 2005, how...

Letter - Creating a buzz. Keep the skies for those who really need to use it, and stop expanding airports, says one reader.(Letter to the Editor)
June 2, 2005... I would like to comment on your profile of British Airports Authority FD Margaret Ewing (19 May, pages 20-21). After 20 years as an FD in the oil industry, I retired and became a member of the Stop Stansted Expansion campaign group. Like...

Insider - The appliance of compliance. When was the last time your organisation examined financial processes in detail? Sarbox gives you the chance, writes Chris Beer.(Sarbanes-Oxley Act of 2002)
June 2, 2005... Byline: Chris Beer, managing director of Resources Global. Twelve thousand accountants are already working on Sarbanes-Oxley projects in the UK, according to recent estimates. These professionals will be working on the 200 or so British...

Insider - Profile: Roger Taylor, FD of telecoms giant Carphone Warehouse. One of the UK's biggest mobile telecoms successes is expected to reveal yet another good set of full-year results next week. Carphone Warehouse's CFO tells David Rae that entrepreneurialism mixed with sound business practice is the secret to success.(Interview)
June 2, 2005... Taylor-made Carphone Warehouse is one the great success stories of the mobile telecoms boom. Established in 1989, the company has gone from strength to strength in an industry famed for its volatility. Chief financial officer...

Insider - Insight: writing a killer CV - Pass the first post. Throw out the resume you wrote back in your school days and start again. The job market may be on the up but today's CV needs to stand out if it is to be kept out of the rubbish bin and firmly in the hands of an impressed potential employer. Julie Harding explains how.
June 2, 2005... Byline: Julie Harding, director of Career Matters (www.cvmatters.com) Ever wondered why your peers seem to get interviews as soon as their CV goes out of the door, while yours languishes for weeks, months even, before getting a response?...

Insider Overview - Young pretender. On the frontline: Is 'Boy George' really a match for Gordon Brown? asks Karen Day.(George Osborne)
June 2, 2005... The 'boy versus the bear' is the gleeful billing some politicos have given to the match between new Conservative shadow chancellor George Osborne and the formidable Gordon Brown. At 34, his apparent meteoric rise has raised the hackles of...

Insider - Three steps to ... volunteering your services.(Brief Article)
June 2, 2005... Step 1: What have you got to offer? Think about what you would like to do in terms of the activity and type of organisation you would like to work for. Consider how much time you will be able to give. Step 2: Find your niche ...

Insider - Buzzwords - Sad Doku. (noun) person whose life revolves around solving number puzzles.
June 2, 2005... You can't open a newspaper or magazine these day without being bombarded with calls to join 'the puzzle craze that is sweeping the nation' - Su Doku. Sit on the train - or glance at a nearby colleague - and you will spot someone scribbling...

Services - Adviser: As easy as MBO. A management buyout could be the ideal solution to the difficulties that practices face with succession, write Phil Shohet and Andrew Jenner.
June 2, 2005... Byline: Phil Shohet and Andrew Jenner, directors of Kato Consultancy. With succession still a major cause of concern for firms in the independent sector, a new idea for raising the necessary capital to fund partners' exit routes can only...

Sarbox row: PM under fire after criticising audit 'bonanza'. The chief executive of ACCA has said Tony Blair was 'misguided' after the prime minister questioned the 'bonanza' that auditors have enjoyed as a result of the Sarbanes-Oxley Act, writes Gavin Hinks.(Sarbanes-Oxley Act of 2002)(Brief Article)
June 2, 2005... Allen Blewitt said Blair was 'putting the blame on people who have been impacted by the legislation'. Blewitt added: 'It's a little misguided to make a broad-brush criticism of accountants and auditors.' In his speech on risk and public...

Bill could mean jail for innocent auditors. Failure to clarify wording of new proposals in DTI company law reform bill could lead to accountants being jailed for honest mistakes, writes Paul Grant.
June 2, 2005... Innocent accountants could face prison sentences if the government fails to clarify proposed new laws on auditors' responsibilities. The government is expected to come under intense pressure as the profession lobbies for a change in the...

Cleared Andersen vows to fight civil litigation.(Arthur Andersen )
June 2, 2005... Byline: Paul Grant and Nicholas Neveling. A Supreme Court decision overturning the criminal conviction against collapsed former Big Five accountants Andersen will be used to fight civil litigation, the firm said this week. The firm was...

Ofcom and BT clash over transparency. Regulator demands more detailed financial reports from the telecoms giant, writes Nicholas Neveling.(Brief Article)
June 2, 2005... Dissatisfaction with the quality of financial information provided by BT has prompted the Office of Communications to demand more detailed reports from the telecoms giant. Last week, Ofcom opened up a consultation proposing that BT...

S&W merger wins firm eighth place.(Smith & Williamson )(Brief Article)
June 2, 2005... Byline: James Bennett. Smith & Williamson has merged with Solomon Hare to form the eighth largest firm in the UK's accountancy and financial advisory market, according to the Accountancy Age Top 50. S&W previously stood at number nine...

ICAEW workings face scrutiny. Institute discipline may fall under Freedom of Information Act, writes David Rae.(Institute of Chartered Accountants in England and Wales)(Brief Article)
June 2, 2005... Disciplinary procedures at the ICAEW could be opened up to greater transparency and public scrutiny, after it was revealed that the Financial Reporting Council is set to come under the Freedom of Information Act. Senior officials at the...

Under report: audit catches William Donaldson's watchdog with 'material internal control weaknesses'. The US financial regulator responsible for forcing massive reviews of internal control systems across corporate America has been criticised for having several internal control weaknesses of its own, writes Iain Martin.(Brief Article)
June 2, 2005... In the first audit of the Securities and Exchange Commission's finances, the Government Accountability Office (GAO) categorised a series of weaknesses but concluded that the SEC's financial statements for the year to 30 September 2004 'were...

Firms await clarification on TUPE. Experts remained hopeful this week that firms would win an exemption from employment legislation that could force accountants to switch from one firm to another against their will, writes Nicholas Neveling.(transfer of undertaking)(Brief Article)
June 2, 2005... With the close of consultation on the controversial transfer of undertaking (TUPE) regulations on Tuesday, experts warned of conflicting views within government in the run-up to legislation going live in October. Iain Patterson, employment...

Finance week - Clear benefits for Pilkington. Glassmaker's operating profit boosted by change to share accounting, writes Nicholas Neveling.
June 2, 2005... Pilkington, one of the world's largest manufacturers of glass and glazing products, has added [pounds sterling]1m to its operating profit for 2004 after revamping the way in which it accounts for investment in its shares. Reporting an...

Finance week - Company Reports.
June 2, 2005... Some bad news, at last, for supermarket superpower, while brand consultant is forced to suspend share. Tesco has seen millions of pounds wiped off its balance sheet due to the treatment of employee benefits under IFRS. In its 2004/05...

Tax - Screw tightens on family businesses. High Court judgment quashes exception to S660A meaning tax increases for many SMEs, writes David Rae.
June 2, 2005... Family-run businesses could face fresh challenges from Revenue & Customs after a High Court judgment on controversial tax legislation Section 660A handed the department another weapon in its fight against tax avoidance. In April, High...

Tax - Avoidance revisited in return of finance bill. Chancellor Gordon Brown has pressed ahead with his tax avoidance crackdown, resurrecting measures postponed in the rush to the general election, with a handful of minor concessions to critics, writes our parliamentary correspondent.(Brief Article)
June 2, 2005... The finance bill 2005 contains all the clauses introduced in the original bill that had to be removed because the Tory party insisted there was too little time for debate before the general election. Paymaster general Dawn Primarolo said...

Tax - Short-sighted and too complex.(Brief Article)
June 2, 2005... Considering this country has a pensions gap that even conservative estimates put at close to [pounds sterling]60bn, it was surprising to see yet another attack on the nation's incentive to save in last week's finance bill. By removing a...

Taking Stock - Institute double books ...(Brief Article)
June 2, 2005... Being such a high-flying socialite, TS is accustomed to having a full diary, where numerous soirees and dinners clash. Still, it was with some surprise that TS realised the ICAEW's corporate finance faculty was hosting its annual dinner at...

Taking Stock - Moorgate Place.(Brief Article)
June 2, 2005... A quick dash to Moorgate Place and we found Prince Charles in knockabout mood. Most royal families have had to get used to seeing their power wane over recent decades and the Prince seemed to acknowledge that he too had come to terms with his...

Taking Stock - and clashes with the footie.(Brief Article)
June 2, 2005... If the ICAEW's corporate finance faculty thought competing with Prince Charles was a tough task, it was in for a nastier shock when it discovered that its annual dinner also clashed with the Champions League final (congratulations to...

Taking Stock - Drinking on the job?(Brief Article)
June 2, 2005... TS, of course, enjoys the occasional dram, but like some others, is able to marry this with its strong work ethic. Take administrators Menzies Corporate Restructuring, which has invited tenders for the stock of The Red Lion Blending Company...

Taking Stock - Equitable Life.(Brief Article)
June 2, 2005... If you're after news on Equitable Life, look no further than TS. The mutual has been in the High Court for the last two months suing Ernst & Young, its former auditors, for everything it can get, and all the gossip emerging from the trial has...

News in brief.
June 2, 2005... Crumbling car manufacturer MG Rover will face a DTI investigation into its decline into administration, after the Financial Reporting Review Panel last week raised a number of 'questions' it felt the department should consider. Trade secretary...

Audit ethics could hit bankers and lawyers. Think-tank examines need for an expansion of the rules to cover third parties who supply information on audit clients, writes Paul Grant.
June 2, 2005... Bankers and lawyers who provide information relating to audits face having to follow similar ethical guidelines to auditors if the government listens to the Audit Quality Forum. The think-tank will create a working group to examine the duty...

'Golden rule' threat to tax freedom. Tax freedom day would move back three days if the chancellor plugged the [pounds sterling]9bn hole in the government's accounts, the Adam Smith Institute has said, writes Alex Hawkes.(Brief Article)
June 2, 2005... The right-wing think-tank every year calculates the day when the average individual stops paying tax to the government and starts to earn for themselves. This year it fell on 31 May, four days later than last year. But if, as City experts...

Wrong numbers: Carphone Warehouse FD hits out at cost of IFRS. The cost of implementing international financial reporting standards for Carphone Warehouse will run into six figures, the company's CFO has revealed as he slammed standard setters for the difficulties in interpreting the new rules, writes David Rae.(International Financial Reporting Standards)(Brief Article)
June 2, 2005... Roger Taylor said he had seen the interpretation of standards change 'by the day' over the past six months, and that the Big Four firms have been in the unenviable position of having to ensure a consistent understanding of the rules across...

Insider - Take social responsibility.
June 2, 2005... There is now more focus on how economic activities affect the environment, and a growing acceptance that many of them may not be sustainable. Accountants have been hard at work in this area, with initiatives ranging from 'triple bottom...

Management consultancy - Clearly, we need transparency.
June 9, 2005... After watching a preview of the new feature-length Enron documentary entitled The smartest guys in the room, I was disturbed at the deception that lay within the glass walls of 1400 Smith Street in Houston. But what will alarm people most about...

Management consultancy - Consultants earn [pounds sterling]11bn in aid cash. Charity group reveals consultancy fees help flatter G7 aid donations by billions, writes James Bennett.
June 9, 2005... The Management Consultancy Association has strongly defended the UK industry's position following a damning report that claims consultants from the world's richest countries are pocketing $20bn ([pounds sterling]11bn) from global aid budgets....

Management consultancy - Strong signs of growth in FS sector.(financial services )(Brief Article)
June 9, 2005... The financial services sector is showing significant signs of recovery with growth figures of almost 10% on the first quarter of last year, according to the Management Consultancies Association. Revenues for MCA firms - that make up 65% of...

Technology - Delivering on the technology: Royal Mail's new IT accounting system contributes to its record annual profits.(information technology)(Brief Article)
June 9, 2005... As the Royal Mail battles against a potential price cap on postage costs, the organisation has revealed that new business and accounting IT systems had saved it tens of millions of pounds. The organisation, which earlier this month posted...

Technology - Home computer scheme promises [pounds sterling]1bn bonanza. Huge potential benefits for accountants in home computers plan for SMEs, writes Kevin Reed.(Small and medium enterprises)(Brief Article)
June 9, 2005... Potential extra revenue of [pounds sterling]1bn could be on the cards for accountants as a government-led IT scheme gains momentum. The DTI-led Home Computer Initiative scheme has been introduced to enable employers to implement a tax-free...

Technology - Business data sold on eBay.(Brief Article)
June 9, 2005... More than 70% of hard drives bought on eBay this year contained sensitive personal or business data, according to a study by data recovery business O&O Software. The company was able to recover 3.3 million files, including 40,000 Word...

Awards 2005 - Software Awards.
June 9, 2005... The three software categories in the Accountancy Age Awards are among the most fiercely contested. As you would expect, they are keenly fought over by the software houses themselves. But, more than that, the stamp of approval these awards...

Opinion - End of a era in regulation.(William Donaldson, Securities and Exchange Commission)
June 9, 2005... If the events of the last 10 days are anything to go by, the corporate governance tide is finally beginning to turn. Last week's US Supreme Court decision to overturn Andersen's conviction, for obstruction of justice on work undertaken for...

The Debate - Stage set for a comeback? Andersen's collapse was completely at odds with its actions, writes David Haigh. New verdict is by no means a vindication of the firm's conduct, writes Phil Shohet.
June 9, 2005... Last week, the US Supreme Court overturned Arthur Andersen's obstruction of justice criminal conviction of July 2002. If the firm had been acquitted at the time, there's a good chance it would have survived. The conviction forced the firm...

The corridors of power.(Brief Article)
June 9, 2005... Byline: Jon Ashworth, business features editor at The Times. I experienced a sense of deja vu when I called in at the Baker Street office of BDO Stoy Hayward recently. It brought back memories of a visit in 1992 when plain old Stoy Hayward...

Letter - Good work for charity.(Letter to the Editor)
June 9, 2005... Tony Ball wrote (26 May, page 19) about the risk of preparing charity accounts - and he is correct that charity work can be high risk. A practice risk-management course I attended a while ago even identified charity audits as an area of...

Letter - Minus point.(Letter to the Editor)
June 9, 2005... At risk of another Dr Pedantic letter, I pose the question on financial reporting: does the written word take precedence to the 'minus' sign where there is a conflict? At the last AGM of my bridge club (yes 'bridge'), the presented...

Letter - Row, what row?(Letter to the Editor)
June 9, 2005... In response to your article headed 'Ofcom and BT clash over transparency' (2 June, page 3), I would like to refer you to the summary of Ofcom's recent consultation document. This states: 'Ofcom is encouraged by the spirit of co-operation...

Letter - IT's risky.(Letter to the Editor)
June 9, 2005... So financial directors are putting less emphasis on the cost savings or increased revenue potential of major IT projects and instead taking a much more 'risk-based' approach (28 April, page 13). This bodes well, as it is my belief that the...

Letter - Old dog, new tricks: merger is taking the institute in the right direction.(Letter to the Editor)
June 9, 2005... Much has been aired about the ICAEW strategy over the past few months and the 'merger' with CIPFA and CIMA. As an 'ordinary' and relatively new member (I was a late qualifier about 15 years ago) it is gratifying to see the ICAEW with some...

Letter - Lack of clear strategy.(Letter to the Editor)
June 9, 2005... Since qualifying as an ACA three years ago I have often wondered why so many members were disengaged with the institute. Well now I know - it lacked a clear strategy! As I develop my career I expect the institute to support me and it needs...

Insider - Will the EU boat float? Hopes for a European constitution were shipwrecked following emphatic 'no' votes from the Dutch and French. What's the future for the EU? asks Martin Manuzzi.(European Union )
June 9, 2005... Byline: Dr Martin Manuzi, director of the ICAEW's EU office in Brussels. Even by European Union standards, it has been a tumultuous few weeks. A catalogue of politically emotional anniversaries recalling Europe's past, followed by two...

Insider - AIM special: Lee Ginsberg, FD delivering takeaway success - Slice of the action. Drawing on a wealth of commercial experience, Lee Ginsberg is now delivering the goods at Domino's. He tells Nicholas Neveling about life as a financial big cheese at the AIM-listed pizza giant.(Alternative Investment Market, Domino's Pizza)(Interview)
June 9, 2005... It's close on midnight as I stumble into the Putney branch of Domino's Pizza after an evening spent sampling London's nightlife. The streets are quiet, the shops and restaurants next door are closed, but Domino's is heaving. Customers...

Insider - Viable Alternative. Over the last decade, AIM has gone from strength to strength - even luring US companies away from Nasdaq. It is the destination for bullish investors who dare to be different, writes Michelle Perry.(Alternative Investment Market)
June 9, 2005... Ten years ago, the creators of the Alternative Investment Market could barely have imagined London's junior market would grow, much to the envy of foreign onlookers, into a world class equity market for fast growing companies. But grow it...

Insider - Breaking down the barriers. Changes to the financial promotion order will make it easier to market unquoted shares to private investors, says Claire Madden.
June 9, 2005... Byline: Claire Madden, director of private investor network Hotbed Ltd. A simplification of the regulatory regime for financial promotions will remove obstacles that, some argue, inhibited investment in small and growing firms by private...

Insider - AIM special: tackle your first annual report - Life after listing. There's a whole lot more to an AIM listing than a ticker code and access to all-important funds. For FDs new to the AIM game, don't underestimate the challenge of putting together your first annual report. These days it's vital, says Steve Kemp.(finance directors)(Alternative Investment Market )
June 9, 2005... Byline: Steve Kemp, director of Emperor Design. For many finance directors, the highs and lows of a flotation are swiftly followed by the reality of life as a listed company. Producing the company's first set of annual results, including...

Insider - Overview - Rover's coroner. On the frontline: choice of forensic accountant reveals direction of Rover inquiry, writes Karen Day.
June 9, 2005... The appointment of forensic accountant Gervase MacGregor to investigate MG Rover indicates not only the suspicions surrounding the group's affairs but also a political determination to get to the bottom of its demise. MacGregor, head of...

Insider - Overview - Three steps to celebrating a business anniversary.(Brief Article)
June 9, 2005... Step 1: Make celebrating a priority Milestones and anniversaries are important, so be sure to celebrate. Applauding on-going accomplishments is a way of building a positive, growth-oriented, and hopefully 'fun' culture within your...

Insider - Overview - Buzzwords - Freakonomics (noun) the hidden side of everything.(Brief Article)(Book Review)
June 9, 2005... 'It will literally redefine the way we view the modern world,' is the somewhat fanciful claim that economist Steven D Levitt and Stephen J Dubner make of their new book, Freakonomics. In it they apply economic theory to well, everything. ...

Insider - Overview - Something to celebrate.
June 9, 2005... Byline: Martin Graham, head of AIM. This year not only marks AIM's 10th birthday but looks set to be remembered as the year that the market truly came of age. By the end of April this year there were 1,028 UK companies and 138...

Services - Adviser: Handle the software soft-sell. The recent overtures of Microsoft, Sage and co to accountants in practice may bring benefits, but also creates problems. Mark Holland weighs up the issue.
June 9, 2005... Byline: Mark Holland, partner in the IT Advisory group of Baker Tilly. So Microsoft plans to woo members of the accounting profession in the UK by inviting them to join their Professional Accountants' Network. Other major software houses...

Mid-tier in FTSE100 comeback. BDO audit contract and GT ad campaign challenge Big Four's dominance, writes Nicholas Neveling.(BDO Stoy Hayward )(Brief Article)
June 9, 2005... BDO Stoy Hayward is poised to become the first firm in seven years outside the Big Four to audit a FTSE100 company, placing the auditor in the vanguard of a mid-tier challenge to the country's biggest firms. The UK's sixth biggest firm...

Creditors spared costly Rover accounts restatement. Interests of Rover creditors put first as FRC review concludes it should not investigate further or encourage a restatement of accounts, writes Karen Day.(Financial Reporting Council )(Brief Article)
June 9, 2005... The Financial Reporting Council has chosen not to force MG Rover to restate its accounts or probe further, because this would only have 'eaten into the limited assets' left to creditors. A review of the Rover accounts concluded that there...

Presidential candidate: Bush proposes 'accountant-friendly' Christopher Cox for the SEC's top job.
June 9, 2005... Accountants could be in for an easier regulatory ride following the nomination of Christopher Cox as chairman of the US Securities and Exchange Commission. Cox is seen as a friend of business and has been financially backed by the Big Four. The...

Auditors press for bank haste. Company audits could be qualified because banks are failing to respond with enough speed and accuracy to requests from auditors about their clients, writes Kevin Reed.(Brief Article)
June 9, 2005... The ICAEW, as part of accountancy's umbrella body the CCAB, has joined in urgent talks with the British Bankers Association to solve the problem which is causing anxiety among auditors. BBA executive director Paul Chisnall admitted that...

News in brief.
June 9, 2005... Ian Morris has been named as the new president of the ICAEW, replacing Paul Druckman after his year-long term. Morris is only the second president in the last 20 years to come from a smaller practice, being involved in two partnerships - Morris...

Burberry CFO in line for top job.(Chief Financial Officer )(Brief Article)
June 9, 2005... Byline: Nicholas Neveling. Burberry CFO Stacey Cartwright could be in line for the top job and a pay package in excess of [pounds sterling]2m, if the fashion retailer's CEO Rose Marie Bravo decides not to renew her one-year rolling...

Charity work honoured at awards. Accountants who work with charities that promote awareness of attention deficit hyperactivity disorder, provide holidays for disadvantaged families and manage welfare services are among the winners of this year's Everybody Counts Awards, write Accountancy Age staff.(Brief Article)
June 9, 2005... The winners of the awards, which have been run by the ICAEW and Accountancy Age for the last five years, were each presented with [pounds sterling]2,000 for their charity by institute president Paul Druckman this week. This year's member...

Cox set to take Donaldson's role. Republican nominee for SEC job has history of backing business in congress, writes Paul Grant.(Securities and Exchange Commission)
June 9, 2005... The resignation of Securities and Exchange Commission chairman William Donaldson could provide a boost to the profession after US President George W Bush nominated a business and accountant friendly Republican as his replacement. ...

European companies at risk of interpretation 'chaos'. Experts fear internal market commissioner's plans will undermine work of IFRIC, writes Paul Grant.
June 9, 2005... Accounting chaos could strike EU companies if a proposed European forum creates and issues its own interpretations of international accounting standards, experts have warned. The warning followed moves by internal market commissioner...

Pru positive on solvency standard.(Brief Article)
June 9, 2005... Byline: Nicholas Neveling. FTSE100 financial services group Prudential has welcomed the introduction of a new solvency standard for insurers, despite taking a [pounds sterling]115m hit to its shareholder funds because of its...

Revenue threatens IT supplier with court action.(Brief Article)
June 9, 2005... Byline: David Rae. The Inland Revenue is set to launch court proceedings against former IT supplier EDS, unless ongoing discussions deliver a suitable compensation package to the embattled tax collector. Accountancy Age first revealed...

OFR to look at reserves.(Operating and Financial Review)(Brief Article)
June 9, 2005... Oil and gas companies are likely to have their reserves scrutinised under the new operating and financial review, following the high-profile reserves scandals of the past two years, writes Alex Hawkes. Richard Wilson, head of Ernst &...

Move to close share loophole. An accounting loophole that allows companies to cover up losses made on share transactions is to be closed by international standard setters, writes Nicholas Neveling.(Brief Article)
June 9, 2005... The move from the IASB comes as it emerged that companies wanting to offload shares in under-performing businesses may be able to take advantage of the latest updates to IFRS3 to cover up losses on their stocks. 'We are not stupid. We will...

Analysis - Examining the wreckage of Rover crash. In an unusual move, the DTI has chosen to set up an external enquiry to investigate Rover's collapse, revealing the depth of official concern over the involvement of the 'Phoenix four', writes Karen Day.(Department of Trade )
June 9, 2005... Two months after the collapse of MG Rover, the UK's last home-grown car manufacturer, and there is still no clear picture of its road to ruin. The news of a formal DTI inquiry may have satisfied some, but with more than 150 sets of financial...

Finance week - Utility giant slashes borrowing for year ahead. United Utilities is cutting back on borrowing costs to fund [pounds sterling]4bn capital expenditure programme, writes Nicholas Neveling.
June 9, 2005... FTSE100 utilities giant United Utilities has said it will slice borrowing costs and increase profits for its 2005/06 financial year, after announcing that it will spend [pounds sterling]4bn on infrastructure by 2010. Controlling borrowing...

Finance week - Company reports. Amortisation rules under IFRS produce profit for chemicals company, but loss for broadcaster ITV.
June 9, 2005... Chemicals company Johnson Matthey (pictured) said pre-tax profits for the year ending 31 March 2005 increased from [pounds sterling]131m under UK GAAP to [pounds sterling]167.4m under IFRS. The group benefited from not having to amortise...

Taking Stock - Trust levels.(oxytocin, trust building serum)(Brief Article)
June 9, 2005... Despite the recent overturning of Andersen's conviction for obstruction of justice, it's not hard to see that the fallout from the paper-shredding episode is still hurting the profession. But, at last, there may be a light at the end of the...