BT takes £145m accounting errors hit
BT has revealed it has taken a £145m hit following the discovery of historical accounting errors and inappropriate management behaviour at its Italian division.
Its second quarter results to 30 September 2016 include a non-cash specific item charge of £145m, which the company says it has recorded following an initial internal investigation at BT Italia.
BT said: “We have identified certain historical accounting errors and reassessed certain areas of management judgement.”
The balance sheet write down is described as a current best estimate of the financial impact based on the investigation. However, the telecoms company added that in its view the errors have not materially impacted the group’s reported earnings over the previous two years.
As a non-cash item in the period it does not impact normalised free cash flow.
According to The Guardian the company has appointed external advisers to assist with a full investigation into BT Italia.
Source: AccountingWeb
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