GOVERNANCE LOBBYISTS are pushing for investors to vote against the re-appointment of PwC as auditors of Barclays and of non-executive director Sir Mike Rake, over concerns that the bank overstates profits through international accounting rules.
Pirc wants its clients to vote against the auditors and former KPMG International chairman Sir Mike over what it claims is a fundamental problem in IFRSs that fails to show its ‘true and fair view' of its accounts, reports The Guardian.
Barclays is not being singled out: Pirc will tell clients to vote against the auditors of HSBC and RBS over its concerns.
It believes that Barclays can use the accounting rules to overstate its profits and capital by £16.8bn. Pirc bases this on IFRS allowing banks to overvalue loans compared with what they would realistically be able to recoup.
Barclays refused to comment on Pirc's stance.
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