The most recent articles from Accountancy Age

Rosebys to make redundancies

Rachael Singh — 2008-10-10T16:03:00.000Z

Rachael Singh, Accountancy Age, Friday 10 October 2008 at 16:03:00

KPMG has announced that it will have to make redundancies as well as close more outlets

The Yorkshire textiles retailer which announced last month that it was going into administration has confirmed that there will be redundancies.

Rosebys, which has 280 stores and employs 2,000 staff, had initially said there were no planned job losses, and had managed to sell the brand name to its Indian parent company GHCL.

KPMG, the administrators to the company, has today announced however that it is to close a further 31 chain outlets and make 186 redundancies.

Howard Smith, Joint Administrator and KPMG Restructuring Associate Partner, said: 'It is with regret that we have had to close both the distribution centre in Selby and 31 more stores across the country. We anticipate further store closures next week, while we continue to have dialogue with a number of parties who are interested in either the whole or parts of the business.'

Among the outlets to close include, Hammersmith, Walthamstow, Liverpool and Edinburgh.

Management Consultancy Top 75

Paul Grant — 2008-10-10T15:36:00.000Z

Paul Grant, Accountancy Age, Friday 10 October 2008 at 15:36:00

21st annual survey shows another £1bn on revenues

Accountancy Age's 21st annual survey of the consultancy industry reveals that the top 75 firms exceeded expectations by adding a whopping £1bn to their revenues. But in an industry inextricably linked to the economy, and financial services, there are tougher times ahead, writes Philip Abbott.

To view our coverage of the survey, click here.

AATV: What to ask when buying software part 2

2008-10-10T11:09:00.000Z

Accountancy Age, Friday 10 October 2008 at 11:09:00

The second part fo Dennis Keeling's tips on buying software

Rachael Singh introduces the second part of Dennis Keeling's guide to asking the right questions when buying new software.

AATV: Accounting and the financial crisis

2008-10-10T11:06:00.000Z

Accountancy Age, Friday 10 October 2008 at 11:06:00

How the global market crisis could hit audit firms and destroy fair value accounting

Alex Hawkes talks to David Jetuah about a potential run on an audit firm in the wake of the credit crisis and Gavin Hinks about the battle to save fair valus accounting.

Firms need to lead green agenda

Rachael Singh — 2008-10-10T09:57:00.000Z

Rachael Singh, Accountancy Age, Friday 10 October 2008 at 09:57:00

Professional service firms need to drive climate change agenda forward

Professional services firm need to get their houses in order on the environment, in order to provide a lead on green issues.

The annual European Practice Management Awards saw WWF Chairman, Ed Smith, address professional services and their importance in tackling the problem of climate change.

Smith said: 'Professional services firms have a huge role to play, but those which are planning to advise others on sustainable business must get their own houses in order first to pass the credibility test'

He also stressed the public role of professional services firms in advising governments to roll out climate policies that provide businesses with the certainty to develop long-term commercial strategies.

The EPM Awards were held earlier this week and saw Smith & Williamson walk away with the Best Managed Firm award.

The judges said: 'Smith & Williamson is a different type of professional service firm, combining the disciplines of accounting with investment management and a private bank.'

Other winners included; KPMG for best firm to work for; PricewaterhouseCoopers for best use of technology; and Lovells for management of knowledge.

Help to troubled clients should be ‘more proactive’

Paul Grant — 2008-10-10T09:51:00.000Z

Paul Grant, Accountancy Age, Friday 10 October 2008 at 09:51:00

Accountants should come to the aid of businesses before recession claims them, says AVN president

Accountants should be more proactive in preventing their clients from becoming a victim of recession.

AVN, the association for accountants of owner-managed businesses, said the profession had a ‘moral obligation’ to assist their clients to deal with the difficult economic conditions.

Speaking at the association’s 10th anniversary conference and the launch of its new anti-recession service, AVN chairman Steve Pipe, called on accountants everywhere to step forward during tough times.

‘The accounting profession has a moral obligation to show leadership by proactively helping the business community to weather the financial storm. Doing nothing is not an option, and neither is waiting until our clients are desperate. The profession has to be proactive on this. So we are getting the ball rolling by launching an anti-recession service that involves carrying out a detailed diagnostic review to identify how best to strengthen a client’s cash flow, creating a high impact action plan, and then helping make sure that those plans and good intentions are actually implemented.’

Paulson appoints rescue CFO

Gavin Hinks — 2008-10-10T09:50:00.000Z

Gavin Hinks, Accountancy Age, Friday 10 October 2008 at 09:50:00

Veteran CFO gets key role in US rescue department

US Treasury secretary Hank Paulson has appointed an interim CFO to the newly created Office of Financial Stability.

Thomas Bloom was given the role yesterday, according to CFO.com, and is currently chief financial officer for the Office of the Comptroller of the Currency.

Paulson has been making new appointments since the role of the financial stability office was broadened to include the administration of the $700bn rescue package. Bloom was formerly CFO at the US defence department.

He will report to Neel Kashkari whose appointment is still to receive approval from the Senate. Kashkari is a former vice president at Goldman Sachs.

PwC Legal recruits Freshfields' tax litigation expert

Kevin Reed — 2008-10-10T09:38:00.000Z

Kevin Reed, Accountancy Age, Friday 10 October 2008 at 09:38:00

PwC Legal recruits Freshfields' tax expert Ebrahim Ali to handle clients' tax litigation

Ebrahim Ali has joined PricewaterhouseCoopers Legal's tax ligitation team.

The solicitor will be responsible for advising and representing the firm's clients in MHRC investigation and tax litigation.

He joins from Freshfields Bruckhaus Deringer’s tax department where he specialised in dispute resolution.

Prior to that he was head of tax litigation at the HM Revenue and Customs Solicitor’s Office where he had overall responsibility for advising on tax investigation cases, major transfer pricing disputes and EU and other tax litigation.

'The growth of the tax litigation team is ongoing, in line with the growth in client work,' Agnes Quashie, partner, PricewaterhouseCoopers Legal.

Brown calls for more transparency and disclosure

David Jetuah — 2008-10-10T09:35:00.000Z

David Jetuah, Accountancy Age, Friday 10 October 2008 at 09:35:00

Prime Minister says that there must be greater openness in the books of companies in the future

Gordon Brown has said that companies should make greater efforts to be more open about their assets and liabilities in the future.

In a letter to The Times, the Prime Minister called for listed businesses to shed more light on their holdings.

'We must have stronger international rules for transparency, disclosure and the highest standards of conduct,' he said. Successful market economies need trust, which can only be built through shared values.

'So as we reform our financial system we should encourage hard work, effort, enterprise and responsible risk-taking - qualities that markets need to ensure, so that the rewards that flow are seen to be fair.'

Iran postpones VAT after strikes

AccountancyAge.com — 2008-10-10T09:30:00.000Z

AccountancyAge.com, Accountancy Age, Friday 10 October 2008 at 09:30:00

Iranian president postpones plan for two months after shopkeepers protest

President Ahmadinejad has postponed the introduction of VAT in Iran after nationwide strikes from shopkeepers.

Iranian bazaars had staged strikes to protest against the 3% levy, which came in on September 22.

'In a bid to implement correct tax law and remove the obstacles and problems facing the correct execution of the law, the plan will be on hold for the next two months,' Ahmadinejad wrote in a letter to Economy Minister Shamseddin Hosseini.

UK loses ranking as favourable tax regime

AccountancyAge.com — 2008-10-10T05:36:00.000Z

AccountancyAge.com, Accountancy Age, Friday 10 October 2008 at 05:36:00

UK has lost is ranking in the top three of Europe’s most favourable tax and legal environments

UK has lost its ranking in the top three of Europe’s most favourable tax and legal environments, according to the fourth benchmarking study carried out by the European Private Equity & Venture Capital Association (EVCA) in collaboration with KPMG’s M&A Tax Services.

The study assesses the tax and legal enviroments across 27 European countries for limited partners and fund management companies, investee companies, as well as the environment for retaining talent at both investment firms and investee companies.

It shows France achieved the highest score in the study, followed by Ireland and Belgium, which made beneficial changes to its pension fund environment and new fiscal R&D incentives, pushed the UK out of the top three countries for the first time.

The study also reveals the gap has widened considerably between Europe’s most and least favourable tax and legal environments. This year the highest ranking achieved 1.23, compared with 1.27 in 2006, and the lowest achieved 2.40, compared with 2.35 in 2006.

E&Y takes over Heritable’s loan book

AccountancyAge.com — 2008-10-10T05:26:00.000Z

AccountancyAge.com, Accountancy Age, Friday 10 October 2008 at 05:26:00

E&Y has been called in as administrator of Icelanding bank Heritable to run its loan book of 81,000 mortgages

Ernst & Young has been called in as administrator of Icelandic bank Heritable Bank and will run its books of almost 81,000 mortgages, as borrowers continue to make repayments while the firm winds up the bank.

Tom Burton, Alan Bloom, Maggie Mills and Patrick Brazzill are the joint administrators of the bank which is now in default, according to the Financial Services Authority (FSA). Deposits from the banks have been transferred to Dutch-owned ING Direct.

According to parent bank Landsbanki, which is also in receivership, Heritable had a loan book of £2.04bn in 2007, of which the UK and Irish mortgage markets accounted for 22%.

‘Heritable will continue to manage its current loan book and the administrators will be seeking to find purchasers for, and will continue to manage, the remainder of Heritable’s business and loan book to maximise recovery for creditors,’ a statement said on the bank’s website.

Dales Group calls in administrators

AccountancyAge.com — 2008-10-10T05:21:00.000Z

AccountancyAge.com, Accountancy Age, Friday 10 October 2008 at 05:21:00

Chinese cash and carry company Dales Group has appointed joint KPMG administrators

Liverpool-based Chinese cash and carry company Dale Group has called in KPMG as administrator in a bid to sell the operations which comprise CWTL Limited, Dales Group Limited and China Gate Limited, following the firm’s appointment as administrator of Oriental Food Service Limited, a fourth company in the group on September 26.

The group, which employs 100 people and has a turnover of £30m, operates two Chinese cash and carries in Liverpool, together with warehousing and distribution facilities at a third site in Liverpool and also in Blackpool.

Paul Dumbell, joint administrator and a KPMG Restructuring director, said the group would continue to trade with a view to achieve a going concern sale.

‘We would urge any parties who may be interested in acquiring the business to contact us as soon as possible,' he said.

KPMG bolsters its forensic team

AccountancyAge.com — 2008-10-10T05:07:00.000Z

AccountancyAge.com, Accountancy Age, Friday 10 October 2008 at 05:07:00

KPMG Forensic has strengthened its fast growing forensic technology team

KPMG Forensic has recruited Rowan Taylor as a director in its fast growing forensic technology team to lead the development of its forensic technology services for the financial services industry.

Taylor joins KPMG from Atos Origin where he was a partner with their financial services advisory practice, specialising in technology and security. Before that, Taylor held positions at Xansa and Accenture.

Fraud has continued to be a major issue in both the private and public sectors over the past years, which has been instrumental in making Forensic KPMG’s fastest growing business in the UK for the last two consecutive years running.

‘I am delighted to be joining KPMG and its rapidly expanding forensic practice. Financial services clients are facing many important issues where our skills can be of great value in reducing reputational risk and commercial loss,’ Taylor said.

Reporting issues flagged by FRRP

Judith Tydd — 2008-10-09T20:55:00.000Z

Judith Tydd, Accountancy Age, Thursday 9 October 2008 at 20:55:00

Potential reporting issues for companies in the worsening economic climate says Financial Reporting Review Panel

The Financial Reporting Review Panel has highlighted potential reporting issues for companies in the worsening economic climate.

In a report based on the assessment of 300 company accounts, 138 of which were contacted by the panel which sought further information or explanation on various accounting items.

The panel has also advised company directors to be mindful of subsequent changes in accounting.

Sources of uncertainty affecting management’s estimates, revenue recognition criteria and relationships with special purpose entities have been highlighted as areas to note.

Panel chairman Bill Knight said that UK company directors are known for their compliance with standards, and the report has been designed to address areas more sensitive to change.

‘The panel is less likely to question directors whose business model is clear, who avoid boiler-plate descriptions and who are open about the specific risks and uncertainties that may challenge their business in the foreseeable future,’ said Knight.