Accountancy Age articles from October 2008

Accountancy Age archives from October 2008

Moving forward: be an optimist.
October 1, 2008... Byline: Lynn Williams Moving forwarD: Be an optimist Well, the news this month has certainly been gloomy. Even so, there are people who remain positive even during these tough times. They are natural optimists who always find...

Ditch the donkey work.
October 2, 2008... Byline: Robert Salvoni Ditch the donkey work The global spend on outsourcing is on track to break records in 2008; its popularity fuelled by the uncertainty of current business conditions. Accountants have been slow to take to...

hunter becomes prey.
October 2, 2008... hunter becomes prey The 1990's saw some of the largest accountancy practices set up law firms; but is the time now approaching when accountants become the prey of lawyers? The passing of the Legal Services Act 2007, which received Royal...

View from the board: cash is king.
October 2, 2008... Byline: Mark Freebairn View from the board: cash is king I hosted a lunch last week. It was a lunch made up of finance directors from PLCs and private equity-backed companies, NEDs and investment bankers. Two things amazed me. ...

Combined force.(KPMG)(Interview)
October 2, 2008... Byline: Kevin Reed Combined force getting the right infrastructure is instrumental in consolidating KPMG's european businesses, chief information officer Bryan Clark tells Kevin reed KPMG Europe's chief information officer has...

People and moves...
October 2, 2008... Byline: Kevin Reed People and moves... Job to die for: IASCF member KPMG audit partner Prabhakar Kalavacherla has left to join the International Accounting Standards Committee Foundation: a move that earns our job of the week...

Raging Bull or paper tiger?
October 2, 2008... Byline: David Jetuah Raging Bull or paper tiger? The City of London has been left reeling by the fall of Lehman Brothers and jittery investors are wondering who might be next. The government is far from flavour of the month at the...

on the money with Damian Wild.
October 2, 2008... Byline: damian wild on the money with Damian Wild Simon Walker has had a busy September, attending each of the major political parties' annual conferences and sitting on platforms with the likes of City minister...

playing politics.
October 2, 2008... Byline: Nick huber playing politics The accountancy institutes and Big Four firms were out in force during the recent party conference season, schmoozing politicians, organising debates on tax and swapping late-night gossip in bars....

A open and closed case.(Brief article)
October 2, 2008... Byline: Alex Hawkes A open and closed case UK firms have a good reputation around the world for their reporting, but it looks like they may be about to forfeit it. Despite not being public companies, accountancy firms...

Regulators keep an expert eye on fair value calculations.
October 2, 2008... Byline: Penny Sukhraj Regulators keep an expert eye on fair value calculations audit Penny Sukhraj As banks reported somewhat disappointing annual results amidst the global financial crisis, little seems to have been pinned on...

Internal audit chiefs urged to grasp nettle.
October 2, 2008... Byline: David Jetuah Internal audit chiefs urged to grasp nettle David Jetuah One of the world's foremost corporate governance experts has called for internal auditors to seize a more hands-on role and 'put its neck on the block'...

Ethics code to tackle pre-packs.
October 2, 2008... Byline: David Jetuah Ethics code to tackle pre-packs David Jetuah The rules governing controversial 'pre-pack' administrations are to be tightened up by a new code of ethics on company wind-ups. Statement of insolvency...

Experts dismiss tax on City bonuses.
October 2, 2008... Byline: Judith Tydd Experts dismiss tax on City bonuses Tax Judith Tydd Any changes to tax structures in curbing the culture and volume of City bonuses won't be effective, according to leading tax experts. In a testing...

So where do we go from here?(accounting industry's reaction to the financial crisis)
October 2, 2008... Byline: Penny Suhraj So where do we go from here? With the newspapers full of the banking collapse, and the global financial system lurching from one crisis to the next, many in the profession will be wondering what happens next?...

Beware the liquidity trap, Tesco FD tells counterparts.
October 2, 2008... Byline: Damian Wild Beware the liquidity trap, Tesco FD tells counterparts Finance directors need to retain control of the corporate agenda and run their businesses on a cash basis to avoid falling victim to a liquidity trap, Tesco's...

BDO enjoys a big night outside.
October 2, 2008... Byline: Kevin Reed BDO enjoys a big night outside TS was taking a leisurely stroll along Baker Street (can't expense cabs in these tough times, if you know what I mean) and spied a fella in a sleeping bag seemingly propping up BDO Stoy...

Surf's up.
October 2, 2008... Byline: Kevin Reed As usual TS sat in on the Accountancy Age profile interview, this week's victim subject being Bryan Clark. As the KPMG's IT guru you might expect him to do a bit of surfing. And he does, but just not with a computer....

Barnes blog.
October 2, 2008... Byline: Taking Stock Grant Thornton CEO-elect Scott Barnes has a blog. And it's altogether chummier than those you are used to from accountancy firm senior partners (well, OK, we mean Jeremy Newman's). Early blogs that TS has seen (and it...

knee-jerk reactions will do us no favours The banking crisis has been less a financial storm, that clichi?1/2 of business writing, than a financial hurricane. Sweeping all before it, it has laid waste to Anglo-Saxon banking as surely as Katrina destroyed New.
October 2, 2008... Byline: Alex Hawkes knee-jerk reactions will do us no favours The banking crisis has been less a financial storm, that clichA[c] of business writing, than a financial hurricane. Sweeping all before it, it has laid waste to...

Absolutely (not) CFABulous.
October 2, 2008... Byline: TS Absolutely (not) CFABulous It's never a good thing to choose a criminal as a role model when you're extolling the virtues of an accountancy qualification, but institute rag Accountancy may have made a bit of a boo boo. ...

Council cuts plotted after seat crunch.(Institute of Chartered Accountants in England & Wales plans council reduction)(Brief article)
October 2, 2008... Byline: Alex Hawkes Council cuts plotted after seat crunch Alex Hawkes The ICAEW is looking at plans to slash its 100 strong council, after meetings in which some members had to sit on the steps because there were no seats. ...

KPMG set to integrate its global IT.(Brief article)
October 2, 2008... Byline: Kevin Reed KPMG set to integrate its global IT Kevin Reed KPMG is set to roll out a standardised IT system across the world, its European CIO has told Accountancy Age. But the plans do not entail the creation of a...

Levitt offers crumb of comfort to auditors.
October 2, 2008... Byline: Gavin Hinks Levitt offers crumb of comfort to auditors As the efforts to save the world economy reached fever pitch last week, among the statements issued by the US Treasury was the report of a panel asked to make...

Beyond our Ken.(Brief article)
October 2, 2008... Byline: TS Beyond our Ken Tesco's soon-to-be-elevated FD Andrew Higginson was in good form at last week's Financial Director Summit. Explaining why he had decided to take on a chief exec's role (of the supermarket giant's...

Exodus to Ireland gathers pace as WPP switches.
October 2, 2008... Byline: Judith Tydd Exodus to Ireland gathers pace as WPP switches Judith Tydd There could be an acceleration of businesses moving to Ireland, a leading tax professor has warned, after FTSE 100 media giant WPP announced plans to...

i?1/2We are too quiet,i?1/2 says GTi?1/2s Barnes.(Grant Thornton LLP)(Brief article)
October 2, 2008... Byline: Alex Hawkes 'We are too quiet,' says GT's Barnes Alex Hawkes Grant Thornton's chief executive-elect has said he will be more outspoken when he takes over at the UK's fifth biggest firm. Scott Barnes, who takes over in...

More please, Moira The new face of the tax deadline campaign has described the filming of the ads as i?1/2just deliciousi?1/2 after the first ad was unveiled, writes Judith Tydd. Former newsreader Moira Stuart showed her best tax advocate qualities to address cha.
October 2, 2008... Byline: Judith Tydd More please, Moira The new face of the tax deadline campaign has described the filming of the ads as 'just delicious' after the first ad was unveiled, writes Judith Tydd. Former newsreader Moira Stuart showed...

Tories plan to Budget responsibly.
October 2, 2008... Byline: Alex Hawkes Tories plan to Budget responsibly Shadow chancellor George Osborne has pledged to create an office for Budget responsibility to ensure future governments keep within borrowing rules to maintain financial stability....

US plan to ditch fair value i?1/2shoots the messengeri?1/2.
October 2, 2008... Byline: David Jetuah US plan to ditch fair value 'shoots the messenger' David Jetuah Banks have no alternative to fair value accounting, a leading standards expert has said, after US congressmen proposed suspending the...

Fraud body seeks collaboration.
October 2, 2008... Byline: gavin hinks Fraud body seeks collaboration Gavin Hinks An agency set up to create a national strategy for tackling fraud will seek to work closely with the profession in a bid to learn more about fraud and anticipate...

Regulation is at crossroads, says Rake.(Brief article)
October 2, 2008... Byline: Damian Wild Regulation is at crossroads, says Rake Damian Wild Two of the UK's most senior accountants have warned that market turmoil has left regulation at a crossroads, but have urged rulemakers to learn from their...

Backgrounder: administrations.(Brief article)
October 2, 2008... Byline: Kevin Reed backgrounder: Administrations Another week, another pile of administrations. Banking got involved, with investor Stodir entering administration after the bank was effectively nationalised by the Icelandic government...

long range forecast.(Survey)
October 9, 2008... Byline: Philip Abbott long range forecast Despite a gloomy economic outlook and fears of a serious recession, the top consulting firms last year added well over [pounds sterling]1bn in fee income taking total earnings to over [pounds...

Growth industry.
October 9, 2008... Byline: Corporate register Growth industry Corporate non-financial reporting has entered the business mainstream, with two-thirds of the global FT500 publishing an environmental, sustainability or 'corporate social responsibility'...

Sweet deal.(Ken Hannah steps down as Cadbury CFO)
October 9, 2008... Byline: Judith Tydd Sweet deal The world is no longer Cadbury for Ken Hanna, who is leaving the nation's best-known confectionery giant. He leaves with the City certainly seeing him as one of their Cadbury's Favourites: the challenge...

cooking the books.
October 9, 2008... Byline: Kevin Reed cooking the books Apart from being among the UK's top accountancy firms Moore Stephens International Ltd, Deloitte & Touche, Ernst & Young Global Ltd, Grant Thornton, KPMG, PwC and Tenon have something other in...

Pre-pack code given the nod by practitioners.
October 9, 2008... Byline: David Jetuah Pre-pack code given the nod by practitioners Insolvency David Jetuah Insolvency practitioners are giving their blessing to the pre-pack rule book which is set to hit the profession soon. A buyer being...

director protector.
October 9, 2008... director protector Major companies are becoming increasingly anxious to have insurance protection for the personal assets of their directors and officers (D&O). Our experience shows that as the economy deteriorates, so the...

A strange fruit.(accounting standards blamed for economic crisis)
October 9, 2008... Byline: Andrew Sawers A strange fruit Many years ago I had a friend who was a foreign exchange dealer. He told me about a dinner he was at with other foreign exchange dealers. In the centre of the table was a pineapple. Being...

Rescue packages.
October 9, 2008... Byline: Kevin Reed Rescue packages As the downturn bites into cash reserves and improving efficiency is the name of the game, investing in new business software could be the most important decision you make this year. One of the...

Crunch highlights cash flow.
October 9, 2008... Byline: Judith Tydd Crunch highlights cash flow tax Judith Tydd Companies are reassessing their VAT systems as they look to improve their cash flow management. Economic instability is forcing a growing number of...

Online: This week's top stories.
October 9, 2008... Byline: David Jetuah ONLINE This week's top stories on accountancyage.com/sector Miss Sixty out of fashion Miss Sixty, the high street clothing chain has folded. Vantis partners Peter Hollis and Nick O'Reilly have been...

Watchdog probes HW over AIM-listed audit.(Worthinton Nicholls and HW Chartered Accountants)
October 9, 2008... Byline: Alex Hawkes Watchdog probes HW over AIM-listed audit Alex Hawkes A probe into Worthington Nicholls, the air conditioning installer, has been launched by the Accountancy and Actuarial Discipline Board. The disciplinary...

Victim of a witch hunt.
October 9, 2008... Byline: Gavin Hinks Victim of a witch hunt Is this the end of fair value? Are politicians in the process of turning themselves into the authority on accounting standards? Not since the demise of Andersen and the Enron scandal has...

Tasting session.(businesses' development of relationships with clients)
October 9, 2008... Byline: Kevin Reed Tasting session It's fair to say that I approached Venturi's table with some trepidation. Adding brown sauce to beans on toast is my way of coming up with a signature dish. Agreeing to get involved in an event...

managing D&O premiums.(directors' and officers' liability insurance)
October 9, 2008... Byline: John Batch managing D&O premiums Directors substantially increase their risk of liability when their company raises capital or issues debt publicly. During the good times, litigation is rare. But if an investment or loan turns...

Capital idea.
October 9, 2008... Byline: damian wild Capital idea Are companies getting better or worse at managing working capital? Simon Terry, supply chain consulting partner, IBM What we've found in research we've done with other analysts, and also some...

on the money with Gavin Hinks.(Nicholas Sarkozky plans to change accounting standards in Europe)(Brief article)
October 9, 2008... Byline: Gavin Hinks on the money with Gavin Hinks Last Friday, French president Nicholas Sarkozy seemed to be threatening to change the face accountancy A- or rather stick the boot into fair value. In other words he...

You could have told us.
October 9, 2008... Byline: Jules Muis You could have told us So PricewaterhouseCoopers chairman Ian Powell is urging accountants to help prevent future financial crises and PwC is generously contemplating sharing its outlook on systemic risks with the...

Mark-to-market still fair game for politicians Accounting standards for public companies are for the investors. This is what needs to be remembered when discussing something as important as suspending fair value accounting. There has been unprecedented pr.
October 9, 2008... Byline: Accountancy Age Mark-to-market still fair game for politicians Accounting standards for public companies are for the investors. This is what needs to be remembered when discussing something as important as suspending fair...

Shall I compare thee . . .
October 9, 2008... Byline: Taking Stock Shall I compare thee. . . Whatever else you think about the debate on whether to suspend fair value, one thing is clear A- those in favour of mark-to-market rules have the best metaphors. Well there are plenty of...

Behind closed doors.
October 9, 2008... Byline: Accountancy Age Behind closed doors To No 10, where TS was invited to hobnob with the PM and scores of other senior bods from the trade rag world. Gordon was there momentarily to press the flesh and gave a very charming...

Boyle's blemish.(Paul Boyle)(Brief article)
October 9, 2008... Byline: TS 'Tis the season again. It's that time of year when the profession is dishing out pearls of wisdom at round tables and panelist meetings, but it seems that even the head of the Financial Reporting Council isn't safe. KPMG's grand...

Herz under the cosh.(Bob Herz)(Brief article)
October 9, 2008... Byline: TS FASB's chairman Bob Herz is under the kosh at the mo and the poor cherub is clearly suffering from jetlag. Herz was listening to two speakers at PwC's Meet the Experts event when the Sandman came- a-calling. TS distinctly saw...

Bring the house down.(Brief article)
October 9, 2008... Byline: Kevin Reed Bring the house down Some critics have proposed that the ICAEW's foundations are crumbling under the face of competition. Whether that's true or not, finance director Robin Fieth (no, that's really his name) told...

More regulation expected in the wake of economic crisis.
October 9, 2008... Byline: Nick Huber More regulation expected in the wake of economic crisis Nick Huber The global economic crisis will result in more regulation of accountants and slow moves towards global accounting standards, experts have...

AADB calls for power to conduct its own investigations.(Accountancy & Actuarial Discipline Board)(Brief article)
October 9, 2008... Byline: Kevin Reed AADB calls for power to conduct its own investigations Kevin Reed The profession's disciplinary body wants the power to undertake its own preliminary investigations, after claiming it would have been 'helpful'...

Analyst warns of run on audit firm.(Peter Elwin)
October 9, 2008... Byline: David Jetuah Analyst warns of run on audit firm David Jetuah An analyst has warned there could be a run on a Big Four auditor, in one of the most concerning ripple effects of the financial crisis. Peter Elwin, head of...

IFRS i?1/2clock is tickingi?1/2, warns Herz.
October 9, 2008... Byline: David Jetuah IFRS 'clock is ticking', warns Herz David Jetuah Bob Herz, the head of the US Financial Accounting Standards Board, has warned that IFRS could be delayed by the problems in financial markets. ...

Consultants cautious despite i?1/21bn boom.
October 9, 2008... Byline: Kevin Reed Consultants cautious despite [pounds sterling]1bn boom Kevin Reed The UK consultancy profession has enjoyed a boom year, with the biggest firms piling on an extra [pounds sterling]1bn in revenues, But...

Standard setters to challenge 'mark-to-Paulson' accounting.
October 9, 2008... Byline: David Jetuah Standard setters to challenge 'mark-to-Paulson' accounting David Jetuah Banks around the world may not be able to mark up the value of their toxic assets according to the prices established through the US...

Timms returns to cabinet for HMRC role.(Stephen Timms named head of Her Majesty's Revenue & Customs)
October 9, 2008... Byline: Our Parliamentary Correspondent Timms returns to cabinet for HMRC role Our Parliamentary Correspondent Former Treasury secretary Stephen Timms has returned to the department to take charge of HM Revenue & Customs. He...

Doni?1/2t kill fair value.
October 9, 2008... Byline: Accountancy Age Don't kill fair value The balance of power over world accounting is shifting. As global calls for the suspension of fair value intensify as part of efforts to ease the financial crisis, it is the...

Offshore amnesty part two.(Brief article)
October 9, 2008... Byline: Nick Huber OFFSHORE AMNESTY PART TWO HM Revenue & Customs is planning to offer British taxpayers a second chance to come clean about their offshore bank accounts as part of its crackdown on tax evasion, writes Nick Huber. ...

Global strategy pays off for E&Y.
October 9, 2008... Byline: Judith Tydd Global strategy pays off for E&Y Judith Tydd Ernst & Young's global integration strategy has driven a 16.2% rise in revenue in the 2008 reporting year. All service lines recorded a jump in profits with the...

Backgrounder: fair value.(Brief article)
October 9, 2008... Byline: Staff backgrounder: fair value Many politicians called for a relaxation of fair value (accountancyage.com/ 2227243) A- but investors spoke with one voice in opposing the proposed move (accountancyage. com/ 2227444). The...

The FDs' FD: Getting capital working.(finance directors)(Viewpoint essay)
October 16, 2008... Byline: Margaret ewing THE fds' fd: GET capital working We are inundated by articles about the credit crunch A- all very alarming and predicting doom and gloom. So much so, that I fear that many finance directors are in danger of...

property boon.
October 16, 2008... Byline: Judith Tydd property boon Steve Jones never entertained the prospect of being an accountant A- the profession held little attraction for a man more concerned with dictating the overarching financial direction of a business. ...

angel-faced.(Brief article)
October 16, 2008... Byline: Kevin Reed angel-faced Who are the real Dragons and Angels? Modwenna Rees-Mogg has attempted to answer this by taking an unofficial look at the Dragon's Den series and working out how to raise money, and how to be an investor....

No expenses spared.
October 16, 2008... Byline: globalexpense No expenses spared Is being permitted to claim expenses a perk of the job? Many employees and their managers seem to think so. Who doesn't recognise a corporate credit card as a badge of office given only to...

retire gracefully.
October 16, 2008... Byline: herbert smith retire gracefully Since mid-2007 the pensions scheme buy-out market has taken flight. By the end of 2007, almost [pounds sterling]3bn of business had been written and some estimates suggest that another [pounds...

Tax charter is still a i?1/2work in progressi?1/2.(Chartered Institute of Taxation)(Brief article)
October 16, 2008... Byline: Judith Tydd Tax charter is still a 'work in progress' tax Judith Tydd While progress is reportedly being made in the introduction of a taxpayer's charter, its adoption seems unlikely in the coming year. Despite...

Defensive position.
October 16, 2008... Byline: David Cairns Defensive position The intervention of politicians in financial reporting issues is nothing new. Those with long memories will recall inflation accounting and deferred taxes in the UK or accounting for derivatives,...

Stationery shift.
October 16, 2008... Byline: Judith Tydd Stationery shift Who'd be in retail? There are worse industries to be in, but with a crunch on consumers on the way and what looks like being a nightmare Christmas, you can see why Alan Stewart, the FD of WH...

Companies in goodwill hole.
October 16, 2008... Byline: David Jetuah Companies in goodwill hole David Jetuah Companies are continuing to bury the worth of acquisitions in goodwill, depriving investors of vital information as the global financial crisis rages on. Research...

Could do better.
October 16, 2008... Byline: michelle perry Could do better Central government has made great strides over the past five years in improving financial performance across the public sector A- but it remains a 'work in progress'. Praise abounds in...

Audit firms forced into drastic measures by Eighth Directive.
October 16, 2008... Byline: David Jetuah Audit firms forced into drastic measures by Eighth Directive AUDIT David Jetuah Audit firms are taking drastic steps to avoid their ability to provide services being hamstrung by the Eighth Directive. ...

Iti?1/2s tIME TO REWRITE the 3 ri?1/2s.(Rescue, Recovery and Renewal)(Brief article)
October 16, 2008... Byline: Alex Hawkes It's tIME TO REWRITE the 3 r's The body that represents recovery professionals is revamping its governance. But if you ask me, its board structure isn't its biggest problem. Ask members of the public,...

Out of sight.
October 16, 2008... Byline: damian wild Out of sight Are mid-market companies embracing outsourcing and which finance services are being put out? Mark Holland, partner, Baker Tilly and ICAEW IT faculty I think it's a trend that is growing....

Taxman to take second bite of offshore cherry.(Her Majesty's Revenue and Customs )
October 16, 2008... Byline: Nick Huber Taxman to take second bite of offshore cherry Plans to offer British taxpayers a second chance to come clean about offshore bank accounts could help speed up a complex crackdown on evasion. HM Revenue & Customs...

on the money with Gavin Hinks.
October 16, 2008... Byline: Gavin Hinks on the money with Gavin Hinks Sir Fed Goodwin, one of the most highly placed accountants in the FTSE 100, has been levered out of his post as CEO of Barclays. As a result he becomes the biggest...

Metaphor ruffles a few feathers.(Brief article)
October 16, 2008... Byline: Gavin Hinks Metaphor ruffles a few feathers As you well know TS has been impressed with the imagination behind the composing of metaphors to defend fair value. This week TS would like to add another to the pantheon of...

The reit state of play.
October 16, 2008... Byline: Judith tydd The reit state of play Rugby Estates plc has joined a growing list of companies to adopt REIT status as a viable investment vehicle. While the concept launched in the US in 1970, it took the much longer for the...