Industry rules out revenue recognition abuse at Adecco
The problems at international employment agency Adecco could not have been caused by abuse of revenue recognition rules, according to experts in the industry.
One rival agency moved to defend the Swiss-based firm as speculation spread that the possible accounting problems it reported might be more widespread in the industry.
Mike Van Handel, chief financial officer at Manpower said it would be hard to abuse the system. He told the Financial Times: ‘The accounting for this is fairly straightforward.’ He claimed this was because revenue recognition was triggered the moment a temp is paid, which he said was ‘in keeping with the accounting principle of matching revenues and costs’.