FRIDAY, 22 NOV 2019

 

CONNECT

Facebook Linked In Twitter
Famagusta_Tel_Aviv_07/10-02/12_728x90px
GloriaJeans_266x90px
IMH LTD

Anastasiades Reiterates His Will and Determination for a Positive Conclusion of Berlin Tripartite Meeting

Natasa Pilides: We are meeting expectations, but competition is very hard

IMH LTD
GAP_Group_2019_468x60px

INTERNATIONAL

brought to you by CIPA

Thomas Cook: MPs to Question PwC on Possible Conflict of Interest

Thomas Cook: MPs to Question PwC on Possible Conflict of Interest

Bosses at PricewaterhouseCoopers will be grilled by MPs on Tuesday over a possible conflict of interest after it emerged that the accountancy firm advised Thomas Cook executives about their pay and bonuses while it was also the travel company’s external auditor, The Guardian reports.

A parliamentary inquiry into the collapse of Thomas Cook is under way and is focusing on executive pay, accounting practices and the role of auditors. At a sometimes combative hearing on 15 October, the fallen tour operator’s bosses drew stinging criticism for the millions of pounds of bonuses paid to directors in the years running up to its demise.

In its recent written submission to MPs, the Institute of Directors talked about “the allegedly aggressive accounting methods” adopted at Thomas Cook. Meanwhile, in recent days both MPs and the IoD have voiced concerns that directors’ pay and bonuses were calculated on profit numbers that excluded one-off negative items. “Were accounting judgements therefore being affected by executive pay considerations?” asked the IoD.

PwC audited the business between 2008 and 2016, with EY taking over the following year. Now it has come to light that for a period of time, PwC performed a dual role as both the Thomas Cook remuneration committee’s adviser and the company’s external auditor.

Thomas Cook’s 2009 annual report stated that the remuneration committee “was mindful of the dual role” performed by PwC. It said: “PwC held this dual role because prior to the merger they had acted as remuneration adviser to MyTravel Group plc and external auditor to Thomas Cook.”

During this period, there was anger among many investors at pay awards for the company’s then-bosses. A vote over boardroom pay in 2008 received just 4% support from independent shareholders after a one-off £5m bonus was given to then-chief executive Manny Fontenla-Novoa.

In June 2009, another firm, Kepler Associates, was appointed external adviser to the remuneration committee.

In 2016, rules were introduced that meant auditors could no longer provide any remuneration advice.

On 22 October, MPs on the business, energy and industrial strategy (BEIS) committee are due to question executives from both PwC and EY. The inquiry’s terms of reference specifically include accounting practices “and the audits conducted by PwC and EY”.

Britain’s accounting watchdog, the Financial Reporting Council, has already begun an investigation into EY’s audit of Thomas Cook’s accounts.

Commenting on its past dual role at Thomas Cook, PwC said: “The non-audit work as advisers to the remuneration committee, which ceased in 2009, was approved in advance by the audit committee, complied with all relevant regulatory standards, and was disclosed in the company’s annual reports.”

MORE ON INTERNATIONAL

Huawei Will Soon Be Able to Buy from Some US Suppliers Again

Huawei suppliers in the United States are about to find out whether they can restart ...

Google to Restrict Political Adverts Worldwide

Google will no longer allow political campaigns to target advertising at people based on ...

EU Production and Trade of Antibiotics

The European Union (EU) produced antibiotics worth €2 970 million in 2018. Italy was ...

FROM AROUND GOLDNEWS

   

Company Profile: Eurobank Cyprus Ltd

Eurobank Cyprus commenced operations in August 2007 with a banking centre in Nicosia and currently operates a network of 8 banking centres in all cities of the ...
   

EY Cyprus Gold Sponsor of The 5th International Funds Summit

EY Cyprus was one of the gold sponsors of the 5th International Funds Summit, which took place between 10 and 12 November 2019 at the Hilton ...
   

How Many Years Are People Expected to Work?

Following data released by Eurostat, in 2018, the expected duration of working life of people in the EU (i.e. the number of years that 15-year-olds are ...
   

Natasa Pilides: We are meeting expectations, but competition is very hard

Cyprus` Shipping Deputy Ministry, which has been operating for nearly two years, is meeting expectations but competition is very hard, Shipping Deputy Minister ...
   

UBS Unveils Year Ahead Outlook for 2020 and a 'Decade of Transformation'

Amid policy uncertainty, core recommendations include quality and dividend-paying stocks, while emerging industry standards should make sustainable investing ...
   

Hellenic Bank’s Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has affirmed the LT FCR and ST FCR of Hellenic ...
   

IDEA Shortlisted for the European Enterprise Promotion Awards

The IDEA Innovation Centre had made it to the shortlist for the European Enterprise Promotion Awards organised by the European Commission. IDEA was among ...
   

Anastasiades Reiterates His Will and Determination for a Positive Conclusion of Berlin Tripartite Meeting

Cyprus President Nicos Anastasiades has reiterated his strong will and determination for a positive conclusion of the upcoming tripartite meeting with the UN ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Tradesocio_23/10-23/11/11_300x250px
Harakis_19/11-09/01/2020_300x250px

IMH LTD