The rule says that companies must carry out regular reviews of the goodwill – representing the company’s intangible assets such as market reputation and brand name – on their balance sheets and adjust accordingly.
Similarly, Stern Stewart believes long-distance carrier WorldCom may have to reduce the goodwill on its balance sheet by $37bn.
Earlier this month, Qwest along with collapsed telecom giant Global Crossing, admitted it had been contacted by chief US financial watchdog, the Securities & Exchange Commission.
Qwest was asked to provide the SEC with documents relating to its dealings with Global Crossing, which is under a probe by the regulator.
Both companies, audited by Andersen, said at the time they would cooperate with the financial regulator.
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