Sun. Oct 25th, 2020

UK civil engineering slumps; trade deal optimism lifts markets – business live

Rolling coverage of the latest economic and financial news

Earlier:

1.41pm GMT

MPs reiterated their concerns over potential conflicts of interest at the accounting firms, and called for a clear separation between the audit and non-audit parts of thier businesses. PwC earned £4m from providing “recruitment and remuneration” advice to Thomas Cook while also auditing its accounts.

1.39pm GMT

Turning to the audit of Thomas Cook’s accounts, which was initially carried out by PwC and later EY, MPs said they had found a large amount of goodwill that was not written down until this year – similar to the collapsed construction contractor Carillion. Goodwill is an accounting concept that refers to the intangible asset of an acquired company which measures things like reputation, customer base and brand value.

We are therefore very disappointed to find yet another corporate collapse in which goodwill has played a major part.

Both PwC and EY told us that they asked the right questions and challenged Thomas Cook’s management. EY said that they had followed accountancy standards and procedures in this respect.

Related: Accountancy profession ‘complicit in Thomas Cook failure’

Continue reading…Rolling coverage of the latest economic and financial newsLatest: Trade optimism lifts marketsUS optimistic of partial deal soonUK construction slump continuesCivil engineering shrinks at fastest pace since 2009Gambling firms shares slide as MPs demand crackdownEarlier:Germany’s manufacturing in recessionMothercare UK faces administration 1.41pm GMTMPs reiterated their concerns over potential conflicts of interest at the accounting firms, and called for a clear separation between the audit and non-audit parts of thier businesses. PwC earned £4m from providing “recruitment and remuneration” advice to Thomas Cook while also auditing its accounts. 1.39pm GMTTurning to the audit of Thomas Cook’s accounts, which was initially carried out by PwC and later EY, MPs said they had found a large amount of goodwill that was not written down until this year – similar to the collapsed construction contractor Carillion. Goodwill is an accounting concept that refers to the intangible asset of an acquired company which measures things like reputation, customer base and brand value.We are therefore very disappointed to find yet another corporate collapse in which goodwill has played a major part. Both PwC and EY told us that they asked the right questions and challenged Thomas Cook’s management. EY said that they had followed accountancy standards and procedures in this respect. Related: Accountancy profession ‘complicit in Thomas Cook failure’ Continue reading…

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