Link: Bonus threat to UK FDs
The results show a startling 16% of FDs feel they have been forced to talk up company results.
One FD confessed that he was ‘always under pressure to do so’, while another admitted to showing results in a more ‘positive’ light to the company bank manger but ‘never to falsify figures’.
Companies place pressure on their auditors too, according to one FD.
‘I have had experience of companies trying to put their auditors under pressure to overlook overstated asset values,’ said Chris Holehouse, FD of Dolphin Head.Others pointed to the expectations an FD faces. It’s ‘part of an FD’s job,’ said one respondent.
Some 76% said they had not come under pressure to put a gloss on results. But respondents confessed they knew people who had or that there were ‘occasional pressures’.
Echo International Health Services FD Ravis Somasundram admitted there was ‘gentle pressure to talk things up’. Another FD said: ‘It depends on who’s asking!’
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