A DIFFERENCE in opinion on applying international accounting rules is a ‘patently ridiculous’ defence for former Autonomy directors to take in explaining why HP had to make billions of dollars in writedowns following its acquisition, HP has claimed.
Former Autonomy founder Dr Mike Lynch (pictured) and other former directors claim that HP failed to grasp the difference between US GAAP and IFRS – in that the international rules allow sales to resellers as bookable revenue, as opposed to whom the reseller sells onto, according to reports.
But an HP spokesman said it was ‘patently ridiculous’ for the directors to claim that HP’s issue – that Autonomy allegedly falsely inflated sales figures through accounting – was in fact a misunderstanding.
With details emerging over the weekend from US government documents accusing Autonomy of booking sales that never happened, Lynch and the other directors deny the deals flagged up would justify the multi-billion dollar writedown made by HP.
What can you do to ensure your employees know the company policy and stick to it? Hear from other CFOs and experts in our free-to-view video
The quality of reporting by the UK’s top public companies has slowed despite greater economic uncertainty and increased investor demands for better disclosure, new research has found
Boards must step up their focus on corporate culture and work to foster longer-term goals if they want to win back public trust and ensure sustainable businesses, the UK accountancy regulator said
MPs have launched an inquiry on corporate governance, focusing on executive pay, directors’ duties, and the composition of boardrooms, including worker representation and gender balance in executive positions