THE CHAIRMAN of private bank Arbuthnot blamed accounting rules for contributing towards offsetting profits within the business.
Describing accounting rules as operating on a "parallel universe", Arbuthnot chairman Henry Angest was unhappy that rules had seen losses from its securities business impact on gains within other parts of the bank, yet the sale of a quarter of its Secure Trust arm was not fully recognised in its P&L, reported the FT.
"These same accounting rules previously allowed failed banks to show huge imaginary profits on which excessive bonuses were paid out...I can only live in hope that we will return to a saner world where a spade is called a spade and where profits mean cash in the till," said Angest.
For more companies and markets data visit the Share Price Centre
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.