PracticeAuditWPP defends accounting policies

WPP defends accounting policies

Acquisitive communications giant WPP has dismissed criticism of its accounting policies amid the worst trading conditions seen in the industry for over a decade.

Reports that the world’s biggest advertising group had boosted profits by refusing to take impairment charges on recent acquisitions despite the downturn have been strongly denied, reports the FT.

The group, which bought 77 companies in the two years to December 2001 at a cost of £3.7bn, used two different accounting treatments for goodwill. Small company values were amortised while the value of its larger acquisitions, which include J Walter Thompson, Young & Rubicam and PR firm Hill & Knowlton, are to be reviewed annually.

WPP, led by Sir Martin Sorrell, provides communication services to more than 300 of the Fortune Global 500 and over half of the Nasdaq 100. The group is due to publish first-half results on August 20.

It recently replaced its auditors Andersen, with Deloitte & Touche.

Related Articles

KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

5d Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2w Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2w Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

3w Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

2m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

2m Alia Shoaib, Reporter
Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

Audit Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

2m Alia Shoaib, Reporter
Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

Audit Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

2m Alia Shoaib, Reporter