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.

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