US mortgage giant Fannie Mae has restated its accounts
from 2001 through to June 2004 following its huge accounting scandal, and faces
a ‘massive task’ to continue to restate its figures following for the next two
The restatement has wiped $6.3bn (£3.2bn) of profits off the company, and it
revealed the restatements work cost it a billion dollars.
The firm, which reportedly altered earnings to trigger management bonuses,
been heavily criticised in a report by the Office of Federal Housing
Enterprise Oversight (OFHEO) and the Securities & Exchange Commission for
its ‘unethical corporate culture’.
James B Lockhart, director of
the Office of Federal
Housing Enterprise Oversight , said of the restatement: ‘Fannie Mae
faces enormous challenges in fixing its operational and risk management systems,
in (financial controls) compliance, and in producing audited financial
statements for 2005 and 2006,’ reported AFX.
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
Smaller businesses could be excluded from government plans for making business transactions digital, found new research from ICAEW
Further powers are being sought by HMRC, but it is ‘failing’ to use those it already has, such as Conduct Notices, says RPC
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live