Accountancy Age articles from March 2006

Accountancy Age archives from March 2006

Spectre of UK Sarbox looms as investors issue 'sign-off' warning.(Brief article)
March 1, 2006... Byline: Penny Sukhraj Spectre of UK Sarbox looms as investors issue 'sign-off' warning Penny Sukhraj Onerous legal sign-offs for all conversations between auditors and client officials risk introducing Sarbanes-Oxley-type rules to...

The true cost of Freebies.
March 2, 2006... Byline: Stephen Camm The true cost of Freebies Sunday's Oscars marks the halfway point in the awards ceremony season. So by now we're all familiar with the ritual. The cameras are rolling, the lights are glaring, envelopes are opened...

The job now departinga[euro][bar].(outsourcing )
March 2, 2006... Byline: Ziv Navoth Pramod Bhasin wants your job. The CEO of Genpact, one of India's largest business process outsourcing firms, has less than three years to reach his target of $1bn annual revenue. A large chunk of that is dependant on...

throwing a sickie.
March 2, 2006... Byline: Peter Mooney throwing a sickie How to tackle workers faking illness has been a dilemma for employers for as long as people have had to work for a living. Not only can it be a sensitive issue, it is also a costly one given...

View from the board: talent scout.
March 2, 2006... Byline: Neville Bain view from the board: talent scout Many finance directors aspire to being the chief executive. It's a valid aspiration and there are many examples of those that have made the transition. Not only is...

On the money.(London and Continental Railways Ltd.)(Brief article)
March 2, 2006... Byline: Anthony Hilton on the money with Anthony Hilton Several billion pounds of debt of London & Continental Railways -- the company which is building the fast rail link from London to the Channel...

Sealed bids are an empty gesture.(Brief article)
March 2, 2006... Byline: Gavin Hinks sealed bids are an empty gesture Somewhere in the City, auditors are now sealing their price tags in envelopes and furtively handing them over for the consideration of non-executive directors -- but only so they can...

People and moves: Job to die for: FD, Smith & Nephew.
March 2, 2006... Byline: Rachael Singh People and moves... Job to die for: fD, smith & nephew The man with the most enviable job move this week is Adrian Hennah, who is preparing to take over as finance director at pharmaceutical giant Smith &...

Halifax ruling opens 'abuse of rights' can of worms.
March 2, 2006... Byline: Alex Hawkes Halifax ruling opens 'abuse of rights' can of worms TAX Alex Hawkes In 2000, the European courts ruled out a clever wheeze. An Austrian milk-powder manufacturer had hit on the idea of exporting the powder...

Never mind the cost, feel the quality.
March 2, 2006... Byline: Paul Grant Never mind the cost, feel the quality audit Paul Grant The emergence of sealed bids being used in the audit market marks a complete change in focus from the recent past. Some large listed companies are...

Rank outsider.(Rank Group PLC's Peter Gill )
March 2, 2006... Byline: David Callaghan Rank outsider WHAT'S HAPPENED Once famous for its ability to entertain us in its films, cinemas and, of course, bingo halls, Rank Group's financial story will keep us on the edge of our seats with the...

Power through Influence.(The Hundred Group of Finance Directors's Philip Broadley )
March 2, 2006... Byline: Gavin Hinks Power through Influence Philip Broadley refuses to say whether he wants to be a chief executive. 'I don't think its relevant to my chairmanship of The Hundred Group,' he says as we wrap up our interview at...

Crisis, what crisis?
March 2, 2006... Byline: Damian Wild CRISIS, WHAT CRISIS? QWe're all being told we're facing a pensions crisis. How serious is it? NICk Edmans: There are grounds for concern in many different respects. Are people putting enough aside? We all know...

'Andersen error is my biggest regret'.(KPMG L.L.P.'s Mike Rake)
March 2, 2006... Byline: Alex Hawkes 'Andersen error is my biggest regret' Mike Rake, KPMG's UK senior partner, could be forgiven for being in a positive mood. The firm is riding high on growth in excess of 20% in its revenues and his time in...

Brewin Dolphin plc.
March 2, 2006... Byline: Company reporting BREWIN DOLPHIN PLC Line of business Private client fund manager Listing status FTSE Small Cap Period end 30/09/05 24/09/04 Publication date 30/11/05 30/11/04 Publication lag (days) 61 67...

Budget will be used to close A-day holes.
March 2, 2006... Byline: Alex Hawkes Budget will be used to close A-day holes Alex Hawkes Gordon Brown is preparing to shut down loopholes in the government's new pensions system ahead of its introduction in the new tax year. Pensions rules...

BAE pension deficit raises disclosure fear.
March 2, 2006... Byline: Chris Evans BAE pension deficit raises disclosure fear Chris Evans Analysts are calling for greater disclosure of pension deficits after BAE Systems' interim results revealed a pension fund deficit that had risen to...

Company reports.
March 2, 2006... Byline: Chris Evans COMPANY REPORTS FTSE100 Britain's Hilton Group has decided to sell its hotel division, but has been unsuccessful in its attempt to return the cash to shareholders, without leaving some of them facing a hefty...

Listed companies face FD shortage as resignations soar.(finance directors )
March 2, 2006... Byline: Phil Smith Listed companies face FD shortage as resignations soar There is a very telling quote buried in a recent study looking at the number of finance directors who have recently jumped ship from listed companies. The...

On the inside.
March 2, 2006... Byline: Gavin Hinks on the inside Broadley trained with Arthur Andersen where he became a partner in 1993 and specialised in financial services and advising on regulators and government agencies. He was appointed FD at the Pru in May...

Pearson sees healthy profits.(Interview)
March 2, 2006... Byline: Cantos Pearson sees healthy profits QPearson delivered improved earnings in line with expectations for 2005. What were the highlights behind that improvement? AI think it just basically came through from both top-line...

Avoiding the issues.(Her Majesty's Revenue and Customs's advises on tax )
March 2, 2006... Byline: John Cullinane is deputy president of the Chartered Institute of Taxation Avoiding the issues Anyone -- competent, qualified, or otherwise -- is free to give tax advice. This has lasted through Victorian self-reliance to New...

Hangover after redesign launch party.(Jason Donovan)(Brief article)
March 2, 2006... Byline: Paul Grant Donovan's new show ditched Just over a year ago, Accountancy Age ran a profile of former soap star turned pop star turned West End star Jason Donovan, who had starred as an accountant in a new TV show. The...

Donovan's new show ditched.(Brief article)
March 2, 2006... Byline: Kevin Reed TS will be looking for a lot of tea and sympathy as it stumbles into the office this morning. You may have noticed a few changes to Accountancy Age this week as it landed on your desk or doormat, and as a reward for our...

Hot gossip from the CIPFA party.
March 2, 2006... Byline: Damian Wild Rockin' ringtones TS is always amused when Paddy Behan, VAT expert at Grant Thornton, encourages us to 'keep the faith' just before he signs off his phone calls. So the following should be of no surprise really. ...

Rockin' ringtones.
March 2, 2006... Byline: Alex Hawkes Hot gossip from the CIPFA party Once again, thanks to our unrivalled access to the London party scene, TS brings you the news that Now and Heat magazine dare not print. You can keep your Posh and Becks and...

KPMG's Grittith-Jones.(Brief article)
March 2, 2006... Byline: Alex Hawkes The general perception of the 'new generation' of leaders of the profession, John Griffith-Jones and Mark Otty, is that KPMG's Griffith-Jones -- the older and more experienced head -- will prove to be conservative,...

You get what you pay for.(auditing )
March 2, 2006... Byline: Glyn Barker You get what you pay for Most of the work an auditor performs is visible only to the audit firm and the relatively small number of people in the organisation being audited. It is, therefore, not surprising that the...

Corporates take heart despite ECJ defeat.
March 2, 2006... Byline: Alex Hawkes Corporates take heart despite ECJ defeat Alex Hawkes Multinationals seeking tax rebates from the UK government totalling billions of pounds have taken heart from last week's advocate general opinion in the...

Taxman faces probe over 'lost' revenues.(Brief article)
March 2, 2006... Byline: Alex Hawkes Taxman faces probe over 'lost' revenues Alex Hawkes The taxman was set to be quizzed by MPs yesterday on a report suggesting that 40% of companies made mistakes with their tax returns. A National Audit...

Sage reveals new suite and clear view from ECJ.
March 2, 2006... ONLINE This week's top stories on accountancyage.com/sector Sage reveals new suite Accounting software developer, Sage has revealed more details about Sage 1000, its new integrated software suite for medium-sized businesses,...

Different day, same old big four How would the accountancy profession have looked if KPMG had succeeded in taking on Andersen, a failure which Mike Rake, the firm's global chairman laments in today's Accountancy Age. From a distance, not very different. T.
March 2, 2006... Byline: Gavin Hinks Different day, same old big four How would the accountancy profession have looked if KPMG had succeeded in taking on Andersen, a failure which Mike Rake, the firm's global chairman laments in today's...

Ambitious convergence targets agreed by IASB.
March 2, 2006... Byline: Paul Grant Ambitious convergence targets agreed by IASB Paul Grant The prospect of creating one set of accounting standards used across global markets moved a step closer this week, but concerns were raised over the speed...

Big Four step in to turn around NHS finances.
March 2, 2006... Byline: Kevin Reed Big Four step in to turn around NHS finances Kevin Reed Lucrative NHS turnaround work has been picked up by the Big Four, as the health service's financial crisis lurches deeper into the red. With KPMG...

Big Four firm holds oscar secrets for 72nd year.
March 2, 2006... Byline: Paul Grant big four firm holds Oscar secrets for 72nd year Cowboy romance Brokeback Mountain leads the field in nominations for this year's Oscars, with Big Four firm PricewaterhouseCoopers once again responsible for...

FD suspended during stock disposal inquiry.(CRC's Christopher Matthews, finance director)(Brief article)
March 2, 2006... Byline: Paul Grant FD suspended during stock disposal inquiry Paul Grant The finance director of CRC has been suspended, as an investigation is launched into what the mobile phone repair group believes is the wrongful disposal...

Vodafone's [pounds sterling]28bn headache.
March 2, 2006... Byline: Kevin Reed Writing down [pounds sterling]28bn of goodwill is enough to make any investor's eyes water, so proved the case for those linked to Vodafone this week. Take a trip to accountancyage.com/ resource/shares and have a...

New-look design puts readers first.(Brief article)
March 2, 2006... Byline: Gavin Hinks New-look design puts readers first Today sees the appearance of a new-look Accountancy Age -- a development intended to improve what we offer you, the reader. We will be using the new look to help us signpost...

Rake blames lawyers for missing out on Andersen.(Mike Rake)(Brief article)
March 2, 2006... Byline: Alex Hawkes Rake blames lawyers for missing out on Andersen Alex Hawkes KPMG senior partner Mike Rake has said that his greatest disappointment is not buying Andersen. In a wide-ranging and frank interview with...

Don't forget price, investors warn.(auditors services)(Brief article)
March 2, 2006... Byline: Paul Grant Don't forget price, investors warn Paul Grant Investors have warned companies not to forget price entirely when they tender for new auditors, following the emergence of sealed bids as a growing trend. The...

Deloitte beats JDS rap and eyes costs.(Joint Disciplinary Scheme)(Deloitte & Touche L.L.P.)(Brief article)
March 2, 2006... Byline: Alex Hawkes Deloitte beats JDS rap and eyes costs Alex Hawkes Deloitte is considering applying for costs after a landmark legal battle with the Joint Disciplinary Scheme. The row with the profession's regulator...

Sanctuary investor rebellion threatens to reopen audit row.(Sanctuary Group on breach of contract)
March 2, 2006... Byline: Alex Hawkes Sanctuary investor rebellion threatens to reopen audit row Alex Hawkes Investors in Sanctuary Group are on course for a major clash with the board, after it emerged that they could block the appointment of a...

FTSE100 directors seek safe harbour.(Philip Broadley seeks legal protection for directors)(Brief article)
March 2, 2006... Byline: Gavin Hinks FTSE100 directors seek safe harbour Gavin Hinks Philip Broadley, The Hundred Group of Finance Directors' chairman and group financial director at the Prudential, has said he will continue to seek more legal...

HMRC set for huge consulting bill, Mazars on the acquisition trail, Recovery experts head new team at KPMG.
March 2, 2006... ICAEW turns to CPD A recruitment drive by the ICAEW will target rival institute markets, using CPD as a key offer. ACCA, CIMA and CIPFA members with at least five years' experience are to be targeted with an exam based around a case study....

EC tax rules not ok.
March 9, 2006... Byline: Alex Hawkes EC tax rules not ok Is there any point to the European Commission's occasional forays into the tax world? Earlier this year, it proposed a concept known as 'home state taxation,' which would allow small...

Tactical Genius.(Alistair Mackintosh's)
March 9, 2006... Byline: Kevin Reed Tactical Nous You might think that chief executive Alistair Mackintosh's biggest concern at the moment is keeping inspirational manager Stuart Pearce from the clutches of the Football Association as it searches for...

Investor revolt puts spanner in works of liability reform.
March 9, 2006... Byline: Paul Grant Investor revolt puts spanner in works of liability reform Audit PAUL GRANT As politicians continue their vigorous debate over the various pros and cons of auditor liability clauses in the company law...

Fashion faux pas.(French Connection Group PLC)
March 9, 2006... Byline: David Callaghan fashion faux-pas what's happened Clothing retailer, the French Connection Group is used to being in the news for some of the most controversial marketing campaigns ever launched. The 'FCUK' brand...

Research predicts finance is offshoring's next big thing.
March 9, 2006... Byline: Kevin Reed Research predicts finance is offshoring's next big thing TECHNOLOGY Kevin Reed Discussions about whether to outsource, offshore, co-source or avoid any of these business tactics have eaten up plenty of time...

Will Jersey loophole be plugged?
March 9, 2006... Byline: Alex Hawkes Will Jersey loophole be plugged? Tax Alex Hawkes When the Big Four firms get around to producing predictions for Budgets and pre-Budget reports, they often have ideas on what loopholes the chancellor may...

School of Thought: Activism.
March 9, 2006... Byline: Julian Franks School of thought: activism Investing institutions are viewed as critical to the exercise of effective corporate governance. Commentators have been sceptical about the value of shareholder activism, believing it...

Auditors prepare for first IFRS test.
March 9, 2006... Byline: Paul Grant Auditors prepare for first IFRS test audit Paul Grant While the financial world will be quite rightly focusing most of its attention on the companies that are producing annual results under IFRS for the...

The well being guide.(auditing)(Brief article)
March 9, 2006... Byline: Binna Kandola the well-being audit There are five key stages to putting in place a well-being audit. But before you start, it is crucial to secure senior management buy-in. An audit is useless without a real commitment to act...

Rank Group and HSBC.
March 9, 2006... COMPANY REPORTS FTSE100 Rank Group has announced plans to plough [pounds sterling]100m into its pension fund over the next four years, after revelling a 13.6% drop in underlying profit last year. The owner of Hard Rock CafA[c] and...

Taxman hot on the heels of cheltenham traders.(Brief article)
March 9, 2006... Byline: Alex Hawkes Taxman hot on the heels of Cheltenham traders The taxman is set to crack down on all the nation's major sporting events this year, starting with a probe of traders at the Cheltenham festival. Businesses...

First choice holidays PLC.
March 9, 2006... FIRST CHOICE HOLIDAYS PLC Line of business: Integrated provider of leisure travel Listing status: FTSE Mid 250 Period end: 31/10/05 31/10/04 Publication date: 7/12/05 13/12/04 Publication lag (days): 37 43 Turnover...

Panic as 'arcane' IFRS issues bite.
March 9, 2006... Byline: Paul Grant Panic as 'arcane' IFRS issues bite Paul Grant A huge number of last minute issues are being raised by companies struggling to cope with the first full-year accounts under international financial reporting...

AIM under fire as cash shells breach LSE rules.
March 9, 2006... Byline: Nana Prempeh AIM under fire as cash shells breach LSE rules Nana Prempeh The Alternative Investment Market suffered a blow last week after the London Stock Exchange hinted that shares from more than 40 companies face...

Fair play in the workplace.
March 9, 2006... Byline: Dianah Worman, CIPD Fair play in the workplace Do you think you would get away with paying your son less pocket money than your daughter, or taking him to Disneyland but not her? Would they think it was fair? So why do we...

Mobile giant's goodwill write down sends shock waves through the City.
March 9, 2006... Byline: Kevin Reed Mobile giant's goodwill write down sends shock waves through the City Vodafone's announcement last week that it was slicing [pounds sterling]28bn of goodwill from its balance sheet relating to its mega...

Is IFRS up to standard?
March 9, 2006... Byline: damian wild is ifrs up to standard? QHow would you rate the smoothness of UK plc's transition to IFRS using a scale of one to five, where one is extremely smooth and five is extremely rocky? DAVID CAIRNS: If we look at...

Married to the profession.(members of Parliament and accountants)(Brief article)
March 9, 2006... Byline: Alex Hawkes Married to the profession Sir David Varney appeared before MPs again last week, and TS is pleased to report that HMRC's head honcho was much cheerier than on earlier occasions. Members of the committee...

On the money.(BAE SYSTEMS PLC's Mike Weston)(Brief article)
March 9, 2006... Byline: Anthony Hilton on the money with Anthony Hilton Mike Weston, the chief executive of BAE, can claim to be one of Britain's most successful chief executives, given the turnaround he has executed at the defence...

Corporate tax errors play down.
March 9, 2006... Byline: Alex Hawkes Corporate tax errors played down Alex Hawkes The vast majority of tax owed due to errors in corporate tax returns relates to just a small number of taxpayers, chairman of HM Revenue & Customs Sir David...

Very pleased to eat you.(Brief article)
March 9, 2006... Byline: Alex Hawkes Very pleased to eat you Now TS doesn't encounter cannibalism very often, it has to be said. So its appearance last week while we were busy celebrating the new look Accountancy Age, with the stars of the...

Government E-Projects.
March 9, 2006... ONLINE This week's top stories on accountancyage.com/sector GOVERNMENT E-PROJECTS It will take another 30 years before Whitehall can successfully deliver major IT projects unless fundamental changes are made. Colin Talbot, a...

Hope dies for revenue recognition tax relief.
March 9, 2006... Byline: Kevin Reed Hope dies for revenue recognition tax relief Kevin Reed The accountancy institutes have conceded defeat in their battle to force the Treasury into overhauling the controversial abstract 40 accounting...

Public service pension schemes deficits drastically underestimated.
March 9, 2006... Byline: Nana Prempeh Public service pension schemes deficits drastically underestimated Deficits in public service pension funds are higher than previously estimated, according to the Government Actuary's Department. The Whitehall...

Alistair Mackintosh provides club with accountant.
March 9, 2006... Byline: Kevin Reed TS was delighted to be able to meet Man City chief exec Alistair Mackintosh, the accountant keeping a tight rein on the club's finances. A man keen on controls, he even provided the club's departments with an accountant,...

SCB manages growth.
March 9, 2006... Byline: Cantos SCB manages growth QYour EPS number is significantly ahead of expectations. Can you talk through what's behind this? AWe're certainly pleased to be growing EPS by 23% to 153.7 cents (87.6p) per share, and...

Man City hires second pair of financial hands.(Manchester City Football Club's Alistair Mackintosh )(Brief article)
March 9, 2006... Byline: Kevin Reed Man City hires second pair of financial hands Kevin Reed A Premiership football club has taken the unusual step of hiring a second financial controller to oversee the commercial side of the club's finances. ...

Fraud knows no boundaries.
March 9, 2006... Byline: David Sherwin Fraud knows no boundaries In the last few weeks, the so-called 'NatWest trio' lost their Enron-related appeal against extradition to Texas, Ian Norris (former CEO of Morgan Crucible) lost the first phase of his...

Avoidance debate lacks definition This week Accountancy Age brings you two startling figures. On the one hand The Hundred Group of FDs, along with PwC, calculates that FTSE 100 companies last year paid [pounds sterling]18bn in tax. Meanwhile, HM Revenue & Customs believ.(Brief article)
March 9, 2006... Byline: Gavin Hinks Avoidance debate lacks definition This week Accountancy Age brings you two startling figures. On the one hand The Hundred Group of FDs, along with PwC, calculates that FTSE 100 companies last year paid [pounds...

KPMG looks to educate our children.
March 9, 2006... Byline: Alex Hawkes KPMG looks to educate our children Alex Hawkes Children could be educated in 'KPMG schools' if plans for trust schools go ahead. The education bill will set up trust schools, which are intended to attract...

Philip Broadley hardly forthcoming.(Brief article)
March 9, 2006... Byline: Alex Hawkes A poor contribution Philip Broadley was not at his most forthcoming on the avoidance issues behind the total tax contribution framework unveiled this week. Here are the numbers, Philip said, make of them what...

Rake's claims shot down by FDs.
March 9, 2006... Byline: Kevin Reed Rake's claims shot down by FDs Kevin Reed The loss of the Big Four would not leave businesses facing state auditing, the nation's finance directors have said, responding to a claim by KPMG senior partner and...

Legal worries put breaks on Rover accounts.
March 9, 2006... Byline: Alex Hawkes Legal worries put breaks on Rover accounts Alex Hawkes Publication of the accounts of Phoenix Venture Holdings has been delayed because of fears from its auditor, Deloitte, that PVH could face legal claims...

Leave our tax burden alone, plead FTSE 100 FDs.
March 9, 2006... Byline: Alex Hawkes Leave our tax burden alone, plead FTSE 100 FDs Alex Hawkes The Hundred Group of Finance Directors launched a last-ditch attempt this week to encourage the chancellor to leave their tax burden untouched in his...

Hundred Group and Varney enter tax reporting row.
March 9, 2006... Byline: Alex Hawkes Hundred Group and Varney enter tax reporting row Alex Hawkes Tax figures in company accounts do not represent the volume of tax companies pay and are incomprehensible to outsiders, two key people said this week...

Scots defend turf against English debt firms.(Brief article)
March 9, 2006... Byline: Kevin Reed Scots defend turf against English debt firms Kevin Reed ICAS is set to clash with the Scottish government over plans to allow English debt management businesses over the border to handle financially stricken...

Directors face stormy future if 'safe harbour' call is rejected.
March 9, 2006... Byline: Gavin Hinks Directors face stormy future if 'safe harbour' call is rejected Gavin Hinks The government has been told it risks creating a new basis for legal claims against company directors if it fails to provide...

People biggest cost, Salary Survey, KPMG is best place to work.
March 9, 2006... PEOPLE BIGGEST COST Increased spending on people has outstripped additional audit fees as the main cost to UK-listed companies during their transition to IFRS. Fears that the costs of transition would outstrip expectations have...

Grant Thornton is still AIM's first choice auditor.
March 9, 2006... Byline: Rachel Fielding Grant Thornton is still AIM's first choice auditor Rachel Fielding Grant Thornton has retained its crown as the auditor of choice for AIM listed companies, gaining 11 clients in the last quarter to keep it...

Adrian Walker's cheeky tax schemes.
March 9, 2006... Byline: Kevin Reed Adrian Walker could find himself alongside HM Revenue & Customs enforcer Dave Hartnett as one of the most unpopular men in accountancy, after talking at length about cheeky tax schemes that had been set up for the rich...