BusinessCorporate FinanceFee gusher is a one-off, claims BP

Fee gusher is a one-off, claims BP

Massive payout to accountancy firms this year is unlikely to be repeated

BP’s extraordinary $238m (£136m) payout to accountancy firms this year is
unlikely to be repeated.

The UK’s largest company by market capitalisation said the high fees related
to three different factors. IFRS and Sarbanes-Oxley had been key, but the stated
figures reflected exchange rate anomalies too.

‘I wouldn’t expect payments to firms to cost as much next year,’ a
spokeswoman said.

The company disclosed last week in its annual report that auditors Ernst
& Young in the UK had earned $40m, $27m of it for audit and audit related
services, and $13m for other services. Worldwide, E&Y’s total earnings from
BP were $87m, an increase of 11.5%.

BP also revealed it paid other major firms a total of $151m, an increase of
84% on 2004.

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