Weekly Catch-Up 24th October
Monday 28 October 2019
New accounting standard drops Google India revenue by 56%
A newly implemented accounting standard has caused Google India’s revenue to drop by 56% in the year ending March 2019, this is according to regulatory filling sourced from business intelligence firm Tofler.
The drop in revenue occurred after the accounting standards changed from IND AS 18 to IND AS 115, which came into effect for reporting periods from April 1, 2018.
Thomas Cook collapse; accountancy profession complicit
Rachel Reeves, chair of the business, energy and industrial strategy committee, has critiscised the accountancy profession, accusing it of being complicit in the failings of major businesses like Thomas Cook and BHS.
“How many more do we need before your industry opens its ideas and recognises that you are complicit in all of this and that you need to reform?” Rachel said to the committee of MP’s as they grilled bosses of PWC and EY.
Germany: Wirecard defends accounting practices
The chairman of German company Wirecard has defended his company’s accounting practices and said that an independent forensic audit is not needed despite the company being accused of fraudulently inflating sales and profits.
FT last week published documents allegedly provided by whistleblowers that appear to indicate a concerted effort to fraudulently inflate sales and profits at Wirecard businesses in Dubai and Ireland, as well as to potentially mislead EY, Wirecard’s Tier 1 auditor.”
India: Infosys stung again by Whistleblowers
Whistleblowers have again hit Infosys, India’s second largest IT firm, claiming they took “unethical” steps to spur short term revenue and profits. This claim, by a whistleblowing group called “ethical employees” comes two years after Infosys were first hit.
In a statement Infosys said “The whistleblower complaint has been placed before the audit committee in line with the company's practice and will be dealt with in accordance with our whistleblowers policy."
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