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.
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.