The company said that it is to reduce the amount of costs that it capitalises in the future, a policy that can boost short-term earnings but hurt long-term profitability.
New chief executive Simon Duffy said the company is now taking a ‘prudent and conservative approach to accounting’ but that while the new system will hit the profit and loss account, the company’s cash position would be unaffected.
The change means that whereas NTL used to capitalise the cost of an engineer visiting a customer’s home whether they had a line fitted already or not, it will now only capitalise the cost if a new line is being installed.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements