The most recent News from Accountancy Age

Grant Thornton rescues Yokshire bakers

Kevin Reed — 2010-02-09T15:10:00.000Z

Kevin Reed, Accountancy Age, Tuesday 9 February 2010 at 15:10:00

Ainsleys sold on by administrators

Administrators have sold off most of stricken Yorkshire-based bakers Ainsleys.

Grant Thornton's restructuring and insolvency specialists brokered a deal to sell the bakery business to Countrystyle Foods while 20 of its 29 leasehold retail outlets have been sold between Cooplands of Scarborough and Cooplands of Doncaster.

The deal will protect most of the 285 jobs at the business.

"We are really pleased to have found buyers for the majority of the various businesses within the Ainsleys portfolio. Negotiations are still ongoing in respect of the remaining nine stores and we hope to be able to announce a positive resolution shortly," said administrator Joe McLean.

"I would like to thank all Ainsleys staff for their help and support during this difficult time. Their loyalty and commitment to Ainsleys, shown by their high standard of work despite uncertainty and terrible weather conditions, has been vital in securing a buyer.”

Anthony Barrett of Grant Thornton’s Leeds-based corporate finance team led the transaction with legal advice from Sally Williamson of DLA Piper’s restructuring team.

Accountants waiting for better times to take new role

Kevin Reed — 2010-02-09T14:47:00.000Z

Kevin Reed, Accountancy Age, Tuesday 9 February 2010 at 14:47:00

Professionals seek new jobs when economy picks up: will put up with a pay cut

Half of the profession is lining up a new job when the economy stabilises.

Many were also prepared to move with a pay cut, according to the survey of 220 industry professionals by Martin Ward Anderson.

Nearly two thirds (61%) of respondents would consider a role that paid less than their current or most recent position.

“It might seem counter-intuitive that such a high proportion of employed accountants plan to look for a new job and would be prepared to receive significantly reduced levels of remuneration. However, the reality is that many of these people have been expected to do considerably more work by their employers during the recession, and have little loyalty to their current workplace," said Paul Robinson, director of Martin Ward Anderson.

Vantis appoints Belsman head of tax

David Jetuah — 2010-02-09T09:35:00.000Z

David Jetuah, Accountancy Age, Tuesday 9 February 2010 at 09:35:00

Belsman aims to further enhance the firm's private client business, high-net worth offering and corporate and employer services

Vantis has announced Paul Belsman has been promoted to National Head of Tax.

Belsman has been advising entrepreneurial businesses and high net worth individuals on all aspects of their tax affairs for over 20 years, the firm said.

As National Head of Tax, Belsman will look to continue development of the firm's private client business, high-net worth offering and corporate and employer services.

David Rankin, managing director of Business Advisory & Tax at Vantis, said: "I am delighted to announce that Paul has accepted the position as National Head of Tax at Vantis.

"Paul has extensive experience in the industry and is highly regarded by clients and staff alike. The tax department is a core area of the Vantis business and I know that Paul will be able to continue to deliver, and enhance, the exceptional service our clients have come to expect from us."

Further reading:

Vantis chief Jackson buys firm's shares

Former Kelda FD stands in as chief at Spice

Kevin Reed — 2010-02-09T09:30:00.000Z

Kevin Reed, Accountancy Age, Tuesday 9 February 2010 at 09:30:00

Martin Towers takes interim chief role at Spice

Former Kelda Group FD Martin Towers is set to take on the interim chief executive role at Spice.

Currently a non-executive director at the utility support services business, Towers has been appointed interim chief until a replacement for Simon Rigby is found.

Rigby led the company from its single contract with Yorkshire Electricity in 1996 to its full listing in 2008.

"He has informed the board that he feels the group has achieved a size and position where it is appropriate for a new style of chief executive to take over the leadership. As a consequence, Simon has made a personal decision that he now wishes to pursue his other business interests," said Spice in its statement.

"Spice has reached critical mass in its core markets and the future is more about growing these businesses organically," said Rigby.

Further reading:

M &S' Dyson joins Betfair board

EU sees room to improve IASB governance

Accountancy Age — 2010-02-09T09:22:00.000Z

Accountancy Age, Accountancy Age, Tuesday 9 February 2010 at 09:22:00

Internal markets man sees change needed to "depoliticise" accounting

Governance of the International Accounting Standards Board still needs to improve and only when it does will it cease to be a political, according to an EU official.

Reuters reports that David Wright, deputy head of the European Union's internal market commission said that there was still "much work to be done" on IASB governance.

The agency reports Wright claimed that finalising the governance structure was a key element in "depoliticising" accounting standards.

Wright was appearing before a commission heariong on accounting and auditing.

Governance of the international standard setter was reformed with the introduction of a monitoring board in January 2009 which introduced a fresh level of oversight by other regulators.

EU attacks IASB governance

Treasury drops Gift Aid tax break reform plans

David Jetuah — 2010-02-09T09:08:00.000Z

David Jetuah, Accountancy Age, Tuesday 9 February 2010 at 09:08:00

Tax policymakers say they will be not be overhauling Gift Aid tax relief as previously announced

The Treasury has backtracked on a possible move to amend laws governing tax relief on Gift Aid charity schemes.

The decision was announced at a high-level meeting last week between the tax policymakers and charity groups.

Charities wanted to see changes, including a possible move to replace tax relief for higher rate tax payers with an increase in the breaks directly available to the not- for-profit organisations.

"Rushing into major reforms of the Gift Aid risks damaging what is seen as a very successful system," The Treasury told the FT.

SAP chairman admits customer trust was lost

Rachael Singh — 2010-02-09T09:05:00.000Z

Rachael Singh, Accountancy Age, Tuesday 9 February 2010 at 09:05:00

Remaining management at financial IT business tries to restore confidence after abrupt departure of CEO

The chairman of SAP, the financial software company, admitted the business has lost the trust of its customers.

Chairman Hasso Plattner said he and the management at the company had made errors, however he added SAP would restore customer confidence, the Financial Times reported.

Plattner admitted it was a mistake to try to increase support service fees by up to 22% last year, the middle of the economic crisis, which was met with severe backlash from user groups.

"This is nothing that can be put into Léos' shoes. We have made a mistake… I was personally involved in decisions about the maintenance fees," said Plattner.

The company later backtracked and charged customers 18% of their licence fee for the Standard Support package.

Plattner confirmed SAP would continue to have two CEOs similar to other companies such as Microsoft.

"Microsoft had its best times when Steve Ballmer and Bill Gates were working together," he said.

Further reading:

SAP chairman admits errors

SAP boss ousted in shock management reshuffle

SAP backs down over increased support costs

BAE brings in Diageo FD as non-exec

Kevin Reed — 2010-02-09T09:02:00.000Z

Kevin Reed, Accountancy Age, Tuesday 9 February 2010 at 09:02:00

Diageo's Nick Rose joins BAE as a non-exec

BAE Systems has brought Diageo CFO Nick Rose on board as a non-executive director.

Rose has served as CFO since 1999, and has non-execed at Moet Hennessy and Scottish Power.

"He has excellent global business expertise and boardroom experience that will be a great asset to us and further strengthen our board," said BAE chairman Dick Olver.

On Friday BAE paid out nearly £300m in fines to the US and UK authorities in relation to failing to keep accurate accounting records and making false statements.

Further reading:

BAE to pay £30m accounting fine in SFO deal

GT acquires media auditor

Mario Christodoulou — 2010-02-09T08:59:00.000Z

Mario Christodoulou, Accountancy Age, Tuesday 9 February 2010 at 08:59:00

Media accounting specialists Aulren acquired by GT

Grant Thornton (GT) has absorbed a media auditor specialising in movie royalty accounting, into its operations.

The firm yesterday announced the acquisition of Aulren, a firm which specialises in film royalty auditing.

The firm has audited royalty and distribution agreements for major film studios since 2002.

It will retain its name under the arrangement but offer GT’s international tax consultancy services to its clients.

Scott Barnes, CEO of GT, said the acquisition was part of the firm’s strategy to build on its strengths.

“The (Aulren) team gives us a sharper cutting edge overall as we continue to grow our presence in the sector,” he said.

"This business complements our existing service offering to the media sector, not only in film and television, but also to the music and publishing sectors.”

Former Welsh auditor general accused of possessing indecent images

Mario Christodoulou — 2010-02-08T14:10:00.000Z

Mario Christodoulou, Accountancy Age, Monday 8 February 2010 at 14:10:00

Police arrest Wales' recently-resigned first auditor general

The former Auditor General of Wales has been arrested on suspicion of possessing indecent images, The BBC reports.

Jeremy Colman, 61, stood down from the Wales Audit Office last Wednesday following an internal review “around matters of personal conduct”, confirmed the office in a statement.

South Wales Police was called in the following day to investigate allegations of pornography on a work laptop.

Colman was the first full time auditor general for Wales, where he oversaw the annual audit of some £20bn of taxpayers’ money.

He has been bailed until March 3.

Read the BBC story:

Wales' ex-auditor Jeremy Colman arrested on porn charge

Read the Wales Audit Office statement:

Auditor General for Wales resigns

Ethel Austin back in administration

Kevin Reed — 2010-02-08T12:37:00.000Z

Kevin Reed, Accountancy Age, Monday 8 February 2010 at 12:37:00

MCR partners attempt to save clothing retailer

Value clothing retailer Ethel Austin has entered administration for the second time in three years.

Partners from MCR were appointed as joint administrators to the 300-store, 70-year old retailer today.

"In the current economic climate there are no guarantees that purchasers will be found. We are reviewing the financial position of the companies and are at this stage, unable to rule out store closures and redundancies," said joint administrator Geoff Bouchier.

Ethel Austin and its subsidiary Au Naturale employ more than 3,700 staff.

The retailer has been hit by funding problems and poor trading in January, the administrators said.

Further reading:

Ethel Austin rescued by ex-MK One chief

Satyam auditor bailed

Raghavendra Verma, in New Delhi — 2010-02-08T10:36:00.000Z

Raghavendra Verma, in New Delhi, Accountancy Age, Monday 8 February 2010 at 10:36:00

PwC auditor released after a year in jail

Talluri Srinivas, one of the PricewaterhouseCoopers auditors arrested more than a year ago in connection with the US$1 billion Satyam Computer Services scandal has at last been granted bail by India’s Supreme Court.

Srinivas' lawyer had contended that he audited Satyam accounts only after 2007, while the inflated profits at the heart of the scandal date back many years.

The court decided in his favour on Thursday (4 February), despite opposition from lawyers for India’s Central Bureau of Investigation (CBI). They referred to a report by the Institute of Chartered Accountants of India (ICAI), saying that he had signed on the audit reports on behalf of Price Waterhouse India (PwC’s name in India) deliberately with the knowledge of its implications and consequences. This violated the requirements of the Auditing & Assurance Standards 28 (AAS-28), argued CBI lawyers, which establishes standards on the form and content of auditors’ reports on financial statements.

Srinivas is, however, not allowed to leave Hyderabad city without the CBI’s permission, and has had his passport confiscated. The court has also directed him not to tamper with any evidence associated with the case or influence witnesses.

The other PriceWaterhouse auditor involved in the scandal, Subramani Gopalakrishnan, remains in prison in connection with the Satyam fraud.

Satyam fraud methodology revealed

Don't axe time-to-pay, say advisers

David Jetuah — 2010-02-08T10:14:00.000Z

David Jetuah, Accountancy Age, Monday 8 February 2010 at 10:14:00

Recovery chiefs firms fear tax deferral scheme could be axed after the expected May general election

Insolvency experts have warned the government faces a "ticking time bomb" of company collapses if a lifeline allowing businesses to defer tax payments is withdrawn.

The Business Payment Support Service has helped more than 160,000 businesses but recovery chiefs firms fear the scheme could be axed after the expected May general election, the Independent reported.

Malcolm Shierson, a partner at Grant Thornton, said: "We expect the number of liquidations to shoot up even further when the future government stops extending the time-to-pay tax scheme."

George Bull, head of tax at Baker Tilly, said: "I think to bring down the guillotine after an election would be a grave mistake because the system has worked really very well to help clients who want to pay, but cannot, to get more time to pay.

"If the right was suddenly halted after an election that would be desperately bad news."

However, tax policymakers have shot down any suggestion the scheme will be pulled abruptly.

A Treasury spokesman told the Independent: "The time-to-pay scheme has been hugely beneficial for businesses facing difficulties and will continue to run as long as necessary.

"Any suggestion that it will end suddenly and businesses forced to repay is incorrect and runs counter to what the scheme was set up to achieve."

Further reading:

Time-to-pay arrangements top £4.3bn

Greater taxes on carbon needed, warns parliamentary committee

Paul Grant — 2010-02-08T10:04:00.000Z

Paul Grant, Accountancy Age, Monday 8 February 2010 at 10:04:00

Collapse in carbon prices threatens green investment

Tax on carbon emissions needs to rise significantly in order to offset a collapse in the price of carbon, parliament’s environmental audit committee has said.

The recession has caused many big companies to be left with more carbon allowances than they need, resulting in a dramatic drop in the price of carbon and threatening the success of Europe’s Emissions Trading Scheme.

The committee is calling for the government to introduce new measures such as a new carbon tax to raise the price of carbon from its current level of €15 a tonne to around €100, reports the Guardian.

"If the government wants to kick-start serious green investment, it must step in to stop the price of carbon flatlining," said committee chairman Tim Yeo.

Bradford & Bingley accounting with Coda

Rachael Singh — 2010-02-08T10:02:00.000Z

Rachael Singh, Accountancy Age, Monday 8 February 2010 at 10:02:00

Troubled mortgage lenders try to save money through accountancy software change

Mortgage brokers Bradford & Bingley has moved to CODA Financials, the accountancy software suppliers, in a bid to save the company money.

A statement by B&B it said it had "decided to move to a move cost effective operating platform for its accounting systems" while still maintaining "service standards".

B&B sold its retail network to Spanish bank Santander last year and its mortgage division and head-office was taken into public ownership by the government in 2008.

Tyrone Griffiths, project manager for Bradford & Bingley, said: "These are challenging times for the financial services industry and we needed a best-in-class financial management solution that had a proven track record in our sector, on our chosen platform and was quick and easy to implement.

"Cost effectiveness was a key driver in our selection as we wanted to move our accounting applications from our previous mainframe environment onto a much more cost effective platform that could seamlessly integrate with our other line-of-business applications," he added.

Further reading:

CODA/Agresso owner rebrands to UNIT4

Coda launches full online accountancy application