In this month’s roundup of developments in accounting and financial reporting, BT £225m bill over Italian accounting errors, Wilkins Kennedy to pay £7.5m settlement, SEC blockchain rules, insurers need to start planning for IFRS 17 Insurance Contracts, FRC needs to increase staff and scope
£225m bill over Italian accounting errors
The accounting scandal at BT’s Italian subsidiary has forced the company to pay £225m in settlement for warranty claims with Deutsche Telekom and Orange under the terms of its EE acquisition agreement, the telecoms giant has revealed.
The German and French telecoms companies are among BT’s largest shareholders, having accepted shares in part exchange for the sale of mobile operator EE last year.
In a statement with its first quarter results, BT said: ‘We have reached settlements with Deutsche Telekom and Orange in respect of any warranty claims under the 2015 EE acquisition agreement, arising from the issues previously announced regarding our operations in Italy. This represents a full and final settlement in respect of these issues and results in a specific item charge of £225m.’
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