AROUND 13% of private equity groups reviewed by the British Venture Capital Association monitoring group failed to comply with reporting standards.
The group, which was established in 2007 in order to increase the transparency of the private equity industry, found that of the 31 portfolio companies reviewed, 27 met its standards, with the remaining four falling short.
Findings from this year's report show that there is a lower level of overall compliance than previous years, with Sir Michael Rake, head of the monitoring group, singling out Sir Richard Branson's Virgin Active and a firm owned by US presidential candidate Mitt Romney (pictured) for failing to meet the standards.
"It was disappointing to see an increase in the proportion of companies which failed to meet the requirements... [We] will be working with them to ensure their reporting standards improve," he said.
According to the report, the amount of companies owned by private equity groups has risen from 54 in 2007 to 79 today. Yet the number of firms failing to fall within the guidelines is 13%, up from 3% in 2011.
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.