ING reports sharp loss after £8.9bn 'accountancy charge'
Dutch bank ING, Europe's biggest insurer, has shocked financial markets with an unexpected net loss of 9.6bn euro (£6.5bn) for 2002 after adopting US accounting rules.
A change in US rules for forced ING to make a 13.1bn euro (£8.9bn) write down on newly acquired assets, worth 16.6bn euro (£11.2bn) on December 2001. US GAAP no longer accepts amortisation of goodwill from 2002. Instead, is requires a re-evaluation of goodwill each year, and a write down for a loss in value.’Under the new US GAAP goodwill requirements, and given the sharp decline in market conditions, total goodwill impairments amounted to 13.1bn euro at 1 January 2002,’ ING stated.An ING spokeswoman said it had always produced two sets of figures, as it is listed both on the Amsterdam and New York stock exchanges. ING dismissed the write-down as an ‘accountancy charge’, but its shares slumped 6.4%.