BusinessCorporate FinanceUK GAAP wipes $100m off BT aquisition

UK GAAP wipes $100m off BT aquisition

As much as $100m (£54m) will be wiped off the revenues of a US technology company being bought by BT Group when its accounts are stated under UK GAAP, the telecoms giant has said.

Link: Decisions – Accounting standards

US network solutions company, Infonet, is being bought by BT Group for $575m. But the company’s $620m of revenues will be reduced by 16%, to $520m under UK GAAP.

According to The Independent Ian Livingstone, BT’s finance director, said the restatement would have no impact on profits or cashflows, but reflected different definitions and revenue-recognition practices in the US.

Related Articles

SMEs at risk of getting burnt by interest rate rises – why accountants should take note

Corporate Finance SMEs at risk of getting burnt by interest rate rises – why accountants should take note

2w Marc Bajer, CEO, Hadrian's Wall Capital
Grant Thornton recruits new corporate finance partner

Accounting Firms Grant Thornton recruits new corporate finance partner

1y Emma Smith, Managing Editor
Total fraud value at £2bn five-year high, finds BDO

Accounting Firms Total fraud value at £2bn five-year high, finds BDO

1y Stephanie Wix, Writer
MHA MacIntyre Hudson appoints corporate finance director

Accounting Firms MHA MacIntyre Hudson appoints corporate finance director

1y Stephanie Wix, Writer
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

1y Stephanie Wix, Writer
KPMG announces senior partner promotion in Newcastle

Accounting Firms KPMG announces senior partner promotion in Newcastle

1y Stephanie Wix, Writer
Independent city firm reports 70% growth

Accounting Firms Independent city firm reports 70% growth

1y Stephanie Wix, Writer
Tax avoidance crackdown sees 80% jump in additional HMRC revenue

Accounting Firms Tax avoidance crackdown sees 80% jump in additional HMRC revenue

1y Stephanie Wix, Writer