We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

Autonomy accounts investigated by UK's FRC


HP claims it was forced to downgrade and devalue its investment

Article comments

The UK Financial Reporting Council (FRC) has launched an investigation into the published financial reporting of Autonomy, in relation to its takeover by HP.

HP claims it was forced to downgrade and devalue its multi-billion investment by US$8.8 billion (£5.6 billion) after it "discovered" financial "misreporting" following the acquisition - something which Autonomy's former CEO Mike Lynch fiercely disputes.

HP says it is taking legal action again former Autonomy execs and is demanding an investigation by US and UK statutory bodies.
The FRC says it will look into Autonomy's accounts for the period between 1 January 2009 and 30 June 2011.

The FRC’s decision to initiate an investigation was taken "following consultation" with the Institute of Chartered Accountants in England and Wales (ICAEW).

According to its mandate the FRC is "responsible for promoting high quality corporate governance and reporting to foster investment". It sets the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.

A swarm of external accountants and auditors were involved in the due dilligence period during the HP takeover on both sides, so their performance is expected to be brought under the microscope. 

Share:

Comments

Autonomy accounts investigated by UK's FRC
Governance

What makes a good board report?

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..


FRC consults on governance code

The watchdog is looking at clawback clauses among other governance issuesmore ..

Review to blame weak governance at Co-op bank

The Kelly Review will pinpoint the Britannia building society takeover as the main problem at the bank, the BBC claimsmore ..

Vince Cable plans to unmask hidden company owners

A public register of company owners will be created whichpolice and tax authorities can usemore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Corporate governance: A catalyst for innovation

Corporate governance is a powerful tool in a C-suite executive’s arsenalmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

Advertisement

* *