In this month’s roundup of developments in accounting and financial reporting, Mitie faces £50m accounting writedown, Companies House cuts, director loan changes adopted for small businesses, IFRS 17 Insurance contracts released
Mitie faces £50m accounting writedown
FTSE 250 facilities management company Mitie Group is set to make a £50m writedown following an accounting policies and balance sheet review after a review by the company and externally hired KPMG. The announcement was made in the update for the financial year ended 31 March 2017.
In January, the company said it had reviewed all major balance sheet items ‘to provide confidence that all relevant accounting standards are appropriately reflected in its financial reporting’. This followed several profits warnings in 2016.
The KPMG review covered material balances of accrued income, mobilisation costs, percentage of completion accounting and recoverability of trade receivables, as well as the carrying value of certain assets.
