PracticeAuditQuestions remain over Barclays’ figures

Questions remain over Barclays' figures

Barclays insists its accounting is prudent – its figures were audited by the same PwC team that took a tough stance with the AIG insurance group

With £1.635bn in writedowns, Barclays revealed that it
had fared better than its rivals during the credit turmoil but questions remain
over the bank’s accounting approach to recognising the losses.

But the bank insists its accounting is prudent – arguing that is figures were
audited by the same PwC team that took a tough stance with the
AIG insurance group, forcing them to adjust their
accounting.

Barclays’ losses were inclusive of a £658m gain on the carrying value of the
bank’s own debt – indicating that the bank’s own lending is less onerous as well
as the debts owed to it.

Analysts have also raised questions over Barclays’ approach to valuing
£7.37bn worth of loans to private equity groups, sitting on the balance sheet.
The bank has written off £130m in fees and taken a £58m hit to its portfolio,
even though several leveraged loans are moving between buyers at less than 90%
of their original value, the FT reported.

Further reading:

Barclays
bust-up on hold as results speak for themselves

Barclays
breathes a sigh of relief as it avoids writedown shock

Barclays
director lands £14.8m bonus

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

5d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor