A report in today’s Washington Post claimed that one of the deals incorrectly booked as revenue involved a contract with WorldCom signed 12 months ago whereby AOL bought internet capacity from UUNet, a unit of WorldCom, to expand its online network.
In return WorldCom agreed to buy advertisements on AOL in a multi-year multimillion-dollar arrangement.
Such arrangements are considered ‘hollow’ because one set of goods or services are exchanged for another, and the only purpose is to book more revenue. The SEC is currently investigating whether such an accounting practice – called a round trip – violates government regulations.
Last week AOL, in its accounting oath made to the Securities and Exchange Commission, admitted that three deals worth $49m had been incorrectly booked as revenue.
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks
The firm reports 7.6% global fee income growth for the year ending 31 December 2016