In this month’s roundup of developments in accounting and financial reporting, BT rings £145m accounts error alarm, £10m misstatement at IT supplier, FRC calls for disclosure on tax status
BT rings £145m accounts error alarm
BT has reported a £145m hit following the discovery of ‘historical accounting errors’ and ‘inappropriate management behaviour’ at its Italian division, according to the telecom giant’s second quarter results.
The figures for the three months to 30 September 2016 include a non-cash specific item charge of £145m, which BT says it has recorded following an initial internal investigation at BT Italia.
The probe included a review of accounting practices.
As a result BT said ‘we have identified certain historical accounting errors and reassessed certain areas of management judgment.’
The balance sheet write down of £145m was described as a ‘current best estimate’ of the financial impact based on the investigation. The write down related to balances that have built up over a number of years.
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