Wild fluctuations generated by IFRS fair value accounting could batter the
the tune of more than £200m, sparking criticism from industry watchers.
‘This has basically made me ignore earnings – I’ll be concentrating on the
cashflow,’ said a source. ‘Fluctuations, particularly around hedging and stocks
means that there’s a lot of volatility. The earnings were never really that
Analyst reports showed that accounting changes and unrealised inventory gains
added $440m to BP’s balance sheet in the third quarter, but BP said that the
demands would remove a similar amount for the most recent period, giving an
indication of the uncertainty involved for investors.
A BP statement said: ‘ A significant negative impact related to IFRS fair
value accounting is expected in 4Q’06, compared to a significant positive impact
The FTSE 100 heavyweight
announced that it would be taking the severe hit to its its refining and
marketing arm after a series of setbacks. Oil production at the corporate
has has been hampered because of severe delays starting new fields in the Gulf
of Mexico and pipeline leaks that shut down supplies from Alaska, causing
concern in the City.
In its trading statement BP was unable to put an official figure on the
extent of the hit because ‘data is not available at this time that would allow
quantification of potential
value accounting gains or charges, or of any potential consolidation
Does Darwin's theory apply to taxation? Colin ponders...
Improvements to cashflow statements are being targeted in a consultation launched by the Financial Reporting Council (FRC)
Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day
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