In the past, oil companies were put under pressure to overbook reserves in order to improve market conditions and increase their borrowing power, according to the FT
But following the collapse of Enron, and increased scrutiny over the valuation of assets, oil companies could be forced to better explain the methodology used to arrive at the figures, which could see millions of pounds wiped off the value of their assets.
Companies are already being asked by the SEC to explain in a letter how they calculated this value, but this could just be a ‘good faith’ attempt by the watchdog before more stringent rules are considered.
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