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.
Steve Butler of Punter Southall Aspire highlights the importance of pension governance meetings to protect against mistakes and safeguard company reputation
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