Accounts to be published this week at
After buying Autonomy in 2011, HP wrote down the value of the company by pounds 5.5bn in
"These restatements, and the reasons for them, are consistent with HP's previous disclosures regarding accounting improprieties in Autonomy's pre-acquisition financials," HP said in a statement released yesterday. "The substantial work necessary to prepare these accounts has revealed extensive accounting errors and misrepresentations in the previously issued 2010 audited financial statements, including the exact problems previously identified by HP."
The findings in the
According to the accounts, many of the issues related "to the overstatement of revenues in Autonomy's US operations".
Profit at ASL has been revised down from pounds 106m to pounds 20m. Its revenue number was originally stated as pounds 176m, but is now reported as pounds 81m. The 2010 loss at ACL, the holding company, has been restated from the original pounds 12m to pounds 22m.
The former Autonomy management team released a statement saying: "We continue to reject these allegations by HP. Given the size of HP's writedown, we are very surprised by the small size of the adjustments in ASL that are attributed to the ongoing accounting dispute, which represent a few per cent of group revenue. We know even these include revenue that will be recognised at a later time, under HP's new approach."
HP chief executive,
HP's complaints about Autonomy's financial reporting are being investigated by the US justice department and the
HP found the ownership of a 20% stake in
A spokesperson for the former senior management of Autonomy said: "We continue to reject these allegations by HP. Given the size of HP's writedown, we are very surprised by the small size of the adjustments in
The amount by which HP concludes that Autonomy's profits were less than stated in its 2010 accounts
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