As we pointed out in our last two blogs here and here, Carillion was less than transparent in its 2016 financial statements about its reverse factoring arrangements. For a much better explanation of supply chain financing (an alternative name for reverse factoring), see Note 19 ‘Trade and Other Payables’ on page 177 of the 2018… Read More
Factoring in Ireland and the UK worth more than €400 billion. Last week we discussed how reverse factoring works. Now we look at how it works in a little more detail. Broadly there are two different objectives from the originator for such schemes: 1) Supplier focused – to support smaller suppliers 2) Company focused –… Read More
Some lessons for us all from the Carillion collapse. A very useful publication was issued recently by the little known Financial Reporting Council Lab called ‘Disclosures on the Sources and Uses of Cash’. Tucked away in the appendix of the publication is a very interesting explanation of reverse factoring. This financing method had a role… Read More
In a rare speech, Sir Donald Brydon, chair of the Future of Audit in the UK, told a packed conference room that he is a little troubled at the current mood that ‘reaches for a shotgun aimed at auditors every time there is a corporate problem’. Speaking at the first ICAEW Audit & Assurance Faculty… Read More