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Severn Trent Water
Baldytyke88
Posts: 882 Forumite
One of England's top-rated water companies is using an accounting trick to artificially inflate its balance sheet by more than a billion pounds, BBC Panorama has discovered.
Severn Trent Water claims that an investment is worth £1.68bn in its accounts, when in reality it has no value to the overall business.
I don't know much about company finances, but if Severn Trent can do it so can other companies, if true.
Does the Government need to bring in stricter rules?
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Comments
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The Panorama programme was utter nonsense.
A check of the company accounts doesn't show any massive increase on their balance sheet.
What has happened and the programme completely missed was a restatement of the nominal share price, which then allowed this £1.6 billion to be moved from shareholder funds (which aren't distributal reserves) to retained earnings (which are distributal reserves).1 -
I listened to a radio four article and it mentioned that because of this accounting weaze, they were able to pay more to, their directors/dividends?
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