Archive for: February, 2011

What Financial Statements Must Have to Expose Risks: ASB’s Proposals

What Financial Statements Must Have to Expose Risks: ASB’s Proposals

The Accounting Standards Board (ASB) has amended the old disclosure requirements in FRS 29 International Financial Reporting Standard (IFRS) 7 to enable users of financial statements to gauge the level of risks that stem from the transfers of financial assets and how they impact financial positions. The first exposure draft on the said requirements for [...]

PCAOB Targets Small Businesses Auditors

PCAOB Targets Small Businesses Auditors

The Public Company Accounting Oversight Board will hold a series of forums this year to meet auditors of small businesses as part of the regulator’s efforts to relay information about its activities concerning the audit of small business community. The forum will set out in Boston, Massachusetts on April 28 and will culminate in St. [...]

Public Spending Cuts Harmful to Clean Energy Growth

Public Spending Cuts Harmful  to Clean Energy Growth

The fast expanding clean energy sector may come to a halt if governments proceed to push for a scale back in public spending, warns the latest Renewable Energy Country Attractiveness Indices of Ernst & Young. According to the report, the positive business outlook on clean energy markets may be dampened by the governments’ willingness to [...]

Conflict of Interest: Ernst & Young’s Role in Telecommunications Company Facing Probe

Conflict of Interest: Ernst & Young’s Role in Telecommunications Company Facing Probe

Amid fresh controversies that recently confronted the global auditing firm Ernst & Young, a new investigation over its role as administrators of the failed telecommunications company Wind Hellas has been launched by the Institute of Chartered Accountants in England and Wales (ICAEW) for possible conflict of interest, The Telegraph reports. Hard on the heels of [...]

For Sale: All Saints Clothing Store at £140 Million

For Sale: All Saints Clothing Store at £140 Million

The British clothing store, All Saints, has called in business consultants from Ernst & Young to advise on the sale of the high street retailer initially valued at £140 million. The clothing store‘s sale comes two years after one of its stakeholders, the Icelandic bank Glitnir, has declared bankruptcy, and whose winding-up committee has recently [...]

Court Race Between Fifth Third Bank and Gulf Coast Horses

Court Race Between Fifth Third Bank and Gulf Coast Horses

Fifth Third Bank, which sued Thoroughbred industry player Gulf Coast in January for defaulting on $15 million loans, is now facing a counterclaim from the American breeder for allegedly trying to withdraw from its equine lending agreements. Fifth Third Bank, a U.S. regional banking corporation based in Cincinnati, Ohio, is a subsidiary of holding company [...]

Financial Fraud Barometer: How Much Have You Lost?

Financial Fraud Barometer: How Much Have You Lost?

The latest “Fraud and Misconduct Survey” conducted by KPMG in New Zealand and Australia showed aggravated losses suffered by organizations from both internal financial fraud and internet-based electronic funds transfer (EFT) facilities. Based on the responses drawn from 214 individual organizations, financial fraud losses climbed twice the $1.5 million average in 2008 results to $3 [...]

PwC to Charities: Brace Your Balance Sheets to Fend Off Loan Agreements Hitch

PwC to Charities: Brace Your Balance Sheets to Fend Off Loan Agreements Hitch

The new accounting standards on the audit of charities might jeopardize public benefit entities (PBE) unable to meet loan agreements test as they are required to show updated balance sheets. The new set of accounting standards released October 2010 by the Accounting Practice Board (APB) on the back of the International Standards on Accounting (ISA) [...]

New York Court to Go Over Glitnir Bank Damages

New York Court to Go Over Glitnir Bank Damages

After the New York court handling the complaint filed by Glitnir Bank’s winding-up committee against seven individuals and PricewaterhouseCoopers had dismissed the case December 2010, the same court now changes mood, nodding to conduct another hearing of both sides. PricewaterhouseCoopers has been implicated in the overstatements of Glitnir‘s financials during the lead up to its [...]

Conspiracy Between Mortgage Lender Chairman, Treasurer Busted

Conspiracy Between Mortgage Lender Chairman, Treasurer Busted

The Securities and Exchange Commission has today filed a lawsuit against a mortgage lender treasurer in an ongoing investigation over the securities fraud that involves Bean & Whitaker Mortgage Corp. (TBW). The initial charges were filed in June 2010 against former TBW chairman and majority owner Lee Farkas for violating the anti-fraud, reporting, books and [...]

Draft Guidance on IFRS for SMEs Issued for Public Comment

Draft Guidance on IFRS for SMEs Issued for Public Comment

A draft guidance on IFRS for SMEs published today by the SME Implementation Group (SMEIG) raises the issue of whether a parent entity may present separate financial statements if it does not have public accountability and if a group is ordered to present consolidated financial statements in accordance with full IFRS. The draft guidance aims [...]

E&Y: UK Lags Behind in Mining Industry M&a, Canada Wins

E&Y: UK Lags Behind in Mining Industry M&a, Canada Wins

Ernst & Young’s latest report on the mining industry deal-making has shown favorable figures for Canada, which represented more than 20 percent of mining deals and more than 30 percent in gold-related transactions made last year on a global scale. However, the accounting and consultancy firm reported a bleak 2010 record for the UK mining [...]

ICO Raps Council Over USB Stick Loss, but Imposes No Fines

ICO Raps Council Over USB Stick Loss, but Imposes No Fines

The Information Commissioner’s Office has once again sanctioned a council guilty of losing a USB stick which contained case notes and minutes of meetings about the aids for six adults. Cambridgeshire council has violated data privacy laws when it compromised such information of vulnerable adults, and like the case of Stoke-on-Trent City Council that had [...]

KPMG Widens Sourcing and Shared Services Through Acquisition of Another Consulting Firm

KPMG Widens Sourcing and Shared Services Through Acquisition of Another Consulting Firm

Through its acquisition of consulting firm EquaTerra, KPMG is expanding its global sourcing and shared services advisory offerings across the Americas, Europe and Asia Pacific. KPMG has previously acquired on August 2010 the other consulting firm Analitica which is involved in business for intelligence and enterprise performance management. The acquisition, according to a KPMG spokesperson, [...]

PwC: Power Sector Globalization, Acquisitions Moving Forward This Year

PwC: Power Sector Globalization, Acquisitions Moving Forward This Year

Although relatively lower than the values seen from 2005 to 2008, mergers and acquisitions in the power sector are ready to venture in 2011 onwards to “return at least to the foothills of these peaks.” PricewaterhouseCoopers’s annual Power Deals review complements its initial report in December last year showing a stronger growth in the power [...]

APB Revises Guidance on UK Bank Reports for Audit Purposes

APB Revises Guidance on UK Bank Reports for Audit Purposes

The Auditing Practices Board (APB) has published February 22 the revised Practice Note on “Bank reports for Audit Purposes in the United Kingdom” with exposure draft seeking public comments that has been previously released last July 2010. According to APB, the move to revise the guidance on bank reports in UK reflects the publication of the [...]

UK Independent Oil Companies Remain Strong Amid Rising Gas Prices

UK Independent Oil Companies Remain Strong Amid Rising Gas Prices

The US and UK have been witnessing for weeks the constantly rising gas prices fueled by political unrest in the Middle East beginning Egypt’s protests to oust President Mubarak up to the current turmoil in Libya that increasingly gathers steam. Nevertheless, Deloitte’s second full year ranking of UK upstream independent oil companies based on market capitalisation [...]

DB Mortgages Slammed for Lax Lending Practices

DB Mortgages Slammed for Lax Lending Practices

The Financial Services Authority (FSA) has ordered DB Mortgages to pay £840,000 for failing to assess its mortgages in way that borrowers can afford them and for unfairly treating customers in arrears. The FSA has proposed in July 2010 to impose affordability tests for all mortgages and oblige lenders to assess a consumer’s ability to [...]

Two Thumbs Up for KPMG

Two Thumbs Up for KPMG

Two different industry magazines annually ranking firms across various fields have separately awarded the global accountancy firm KPMG as the “best auditor in 2010” for its services in auditing, risk management and compliance. Despite the controversies that have challenged KPMG in the past, particularly the House of Lords Economic Affairs Committee inquiry into the role [...]

Cloud Computing “changing the Business Ecosystem”

Cloud Computing “changing the Business Ecosystem”

KPMG India has released a cloud computing report that coincides with the recommendations of technology research firm Forrester, projecting major changes that businesses will adopt in the future as part of their transition to the cloud. Forrester’s report has advised enterprises to align business objectives with organizational efforts to ward off security threats, noting that [...]