Skip to main content

Carillion: that's what you get when prudence is abandoned

UKSA has signed a letter to the Financial Times exposing once again the hole at the heart of modern accounting: the loss of the prudence principle.

In this case, the weakness is in the accounting standard governing revenue recognition. In other cases (and maybe here also) it has been in acquisition accounting. Who knows what else is hidden away in the ungainly structure that has grown over the years around a flawed set of premises?

As the letter says, Carillion is yet another canary in the coal mine. How many more do we need for the government to scrutinise our accounting rules?

Renew your membership

Renewing your UKSA membership is quick and easy, ensuring uninterrupted access to all the advantages of membership.

Responsible Investing

 

_original


"Cogent, relevant, well-informed, astute and important" The Times

Click hereto view

 

The UKSA Newsletter

Newsletter front page

 

Click here to view