In this month’s roundup of developments in accounting and financial reporting, eBay reports errors in tax reporting, dividened payments at Harsgreaves Lansdown, ex assetco finance chiefs face FRC probe
EBay identifies errors in tax reporting
Online sales platform Ebay has notified US regulators that it has identified a material weakness in its internal control over financial reporting which means it did not correctly account for tax on some transactions in December 2016.
In a 10-K filing to the Securities and Exchange Commission (SEC), Ebay stated that ‘in reviewing the accounting for certain transactions we completed in December 2016, as part of the realignment of our legal structure, our management identified a deficiency in the effectiveness of a control intended to properly document and review relevant facts’.
This meant that applying ‘the appropriate tax accounting under standards generally accepted in the US impacted the deferred tax asset and income tax benefit accounts and related disclosures.’
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