This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-31904852
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Grant Thornton sued by Manchester Building Society | Grant Thornton sued by Manchester Building Society |
(35 minutes later) | |
Manchester Building Society is suing the accountancy firm Grant Thornton for £49m. | |
The society accuses the accountants of negligence over their auditing of its accounts between 2006 and 2013. | |
"The claim primarily covers Grant Thornton's advice and audit services relating to the implementation and application of hedge accounting by the society," said the building society. | "The claim primarily covers Grant Thornton's advice and audit services relating to the implementation and application of hedge accounting by the society," said the building society. |
Grant Thornton declined to give a detailed explanation. | |
"As a large professional services firm, there are inevitably occasions where we become involved in legal claims," said a spokesman for the accountancy firm. | |
"Naturally, our obligations of confidentiality mean that we cannot comment on the detail of any litigation in which the firm is involved." | |
Profit into loss | |
A spokesman for the Manchester said that the accountants had given poor and incorrect advice on how to account for interest rate swaps - a type of deal conducted between banks, building societies and other financial organisations. | |
As a result, the society says it had to restate its 2011 results, which turned a small profit into a loss of £21.9m for the year. | As a result, the society says it had to restate its 2011 results, which turned a small profit into a loss of £21.9m for the year. |
The 2012 results had also shown a loss, of £2.3m. | The 2012 results had also shown a loss, of £2.3m. |
As a consequence of this restatement, the society had to raise £18m to bolster its finances in April 2013. | As a consequence of this restatement, the society had to raise £18m to bolster its finances in April 2013. |
The matter is being investigated by the Financial Reporting Council, which regulates accountants. | The matter is being investigated by the Financial Reporting Council, which regulates accountants. |
The investigation started in August 2013 and is still going on. | The investigation started in August 2013 and is still going on. |
"If the society is unable to reach satisfactory agreement with Grant Thornton the matter will progress to a court hearing," the society threatened. | "If the society is unable to reach satisfactory agreement with Grant Thornton the matter will progress to a court hearing," the society threatened. |
The Manchester is only the 19th largest of the UK's remaining societies and has assets of £649m. | The Manchester is only the 19th largest of the UK's remaining societies and has assets of £649m. |
Previous version
1
Next version