GE’s decision, which takes effect from this quarter, means it joins a fast-growing list of high profile companies who have adopted the rule including online retailer Amazon, tech company Computer Associates and beverage king Coca-Cola.
The new accounting rule is unlikely to have a great impact on its bottom line. GE said the decision would reduce 2002 net income by less than 1 cent per share increasing to 3 cents per share over the next three to four years.
The move was made in part to dispel any doubts about the company’s accounts, following sworn statements made by both its chief executive and chief financial officer to the Securities & Exchange Commission that its accounts were true.
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