Lorillard Acquires UK E-cigarette Brand (revised)
Prudence requires accountants to err on the side of caution when treating something not covered by a specific IASB rule and the investors said its omission from the foundation for the IASB’s rules, known as the conceptual framework, was inconsistent with some EU and British laws. They argued it could help banks mask any problems they were suffering, a particular concern given banks were given a clean bill of health just before taxpayers had to rescue them in the 2008 financial crisis. One of the critics, Tim Bush of shareholder pressure group Pirc, challenged the IASB rules in a 24-page letter in 2010 in his role as member of a UK Accounting Standards Board committee. Britain’s government is “entirely satisfied that the concerns expressed are misconceived”, consumer affairs minister Jo Swinson said in a statement on Thursday. Melanie McLaren, a director at the Financial Reporting Council (FRC), which regulates accounting in Britain, said the government statement, backed by a legal opinion for the FRC, ended the uncertainty over accounting practices. “We felt we needed to listen to the investors and give the matter due consideration. Having done that we needed to make sure we were quite firm to close that uncertainty down as we approach the financial year-end,” McLaren told Reuters. Bush said the debate over IASB rules could continue. He told Reuters it was difficult to see how the matter is conclusively settled if there is a situation where the latest legal opinion seemed to be disagreeing with an earlier opinion and also with other judges and a Law Lord. The IASB is reviewing its conceptual framework and the UK government and FRC maintain a reference to prudence should be reinserted. “It’s not as if there is no concept of exercising caution in the conceptual framework, but we feel it has been de-emphasized,” McLaren said. IASB Chairman Hans Hoogervorst has so far resisted such calls, saying prudence was there “in spirit”. A 2011 report from Britain’s upper legislative chamber, the House of Lords, said the IASB rules led to a “culture of box-ticking and ‘neutrality’ at the expense of prudence”, especially for auditing banks. “The government should reassert the vital role of prudence in audit in the UK, whatever the accounting standard,” it said.
UK Government Announces Winners Of The GREAT Tech Awards
The lure of the new 63 plate helped sales to climb 12.1pc to 403,136 in September, the Society of Motor Manufacturers and Traders (SMMT) said on Friday. This was the highest number of new cars sold since March 2008, helping sales drive towards the pre-recession average of 416,778. With over 400,000 new cars registered for the first time in more than five years, the UK market is reflecting growing economic confidence, said Mike Hawes, SMMT chief executive. Robust private demand has played a major role in this growth with customers attracted by exciting increasingly fuel-efficient new models that offer savings in the cost of ownership. The UK car industry has also reaped the benefits of people wanting to take advantage of new fuel efficient models and payouts from the payment protection insurance (PPI) debacle. Its not enough to put on a deposit for a house, but its certainly enough to put a deposit on a new car, Mr Hawes told the BBC on Friday. Related Articles 17 Jul 2013 The Ford Fiesta remained Britains most popular car last month, with 20,629 units sold. Attractive finance packages are offering consumers more clarity on running costs, which even with a more promising economic outlook is an important factor for those on a budget, said Richard Lowe, head of retail and wholesale at Barclays. As we head into the quieter months, I suspect well see sales hold firm, keeping the UK market zooming ahead of our European counterparts. The UK car market has cemented its position as the second largest in Europe, with 1.79m new cars sold this year. In addition, more than one in seven new cars registered in September was built in the UK. Only Germany has sold more cars this year, although the 2.22m vehicles sold is 6pc down on 2012. Mr Hawes also believed the UK would sustain its recent strong performance. This is the 19th consecutive month of steady growth and, with fleet and business demand still to reach pre-recession levels, we believe the performance to be sustainable, he said. The latest 63-plate should deliver positive results into next year. Britains insatiable appetite for new cars was further highlighted yesterday when German carmaker Audi said sales in Britain hit a record high of 25,829 cars last month.
Lorillard signed an agreement on Oct 1 to acquire all the assets and operations of SKYCIG, a leading premium brand of electronic cigarettes in the UK. Per the deal, Lorillard will pay approximately 30 million pounds in cash at the time of completion of the deal. In addition, the deal includes a clause to pay an additional 30 million pounds in 2016 on the achievement of certain financial milestones. Post-acquisition, SKYCIG will become a separate operating subsidiary of Lorillard and the company will retain its current management team and business locations in the UK. Lorillard captured a leading position in the electronic cigarette industry in the U.S. after it acquired e-cigarette brand blu e-Cigs in Apr 2012. The SKYCIG acquisition will further boost Lorillards sales as the e-cigarette segment is evolving rapidly. It will also provide this Zacks Rank #2 (Buy) company an opportunity to expand in the wide UK electronic cigarette market. On the other hand, SKYCIG is expected to gain from Lorillard’s marketing, regulatory, research and development expertise, which will help the brand to further strengthen its foothold in the UK e-cigarette market. We note that smokers are shifting their preference to electronic cigarettes due to rising health concerns. Though sales of electronic cigarettes are on the rise, the maker of Newport and Maverick brands has been witnessing a decline in traditional cigarette volumes since the past many quarters.
UK backs global accounting rules, wants ‘prudence’ back
2, 2013 /PRNewswire-USNewswire/ — The winners of the UK Government’s inaugural GREAT Tech Awards were announced tonight at The GREAT Tech Awards Gala at The McKittrick Hotel in New York City. The GREAT Tech Awards, an international technology competition celebrating the best of UK and US technology start-ups, is hosted by UK Trade & Investment. New York-based tech start-ups applied over the summer to win one of five custom UK expansion packages in the education, finance, hardware, lifestyle, and media sectors. “The technology sector is of utmost importance to the UK, and is bolstered by our commitment to innovation, entrepreneurialism, and a dynamic business climate,” said HRH The Duke of York, whose official work includes supporting the economic success of the UK. “The GREAT Tech Awards offer an unparalleled opportunity for the winners to use the UK as their next step towards international expansion and success. I wish the winners the best of luck on their exciting new journey across the Atlantic.” The US award winners were handpicked by a panel of judges representing the finest industry leaders, influencers, and entrepreneurs. The winners are: Media: ADstruc The Advisors’ Choice Award, awarded to Blippar , recognizes a British technology company that has successfully established a New York office. Sponsors of the competition include Virgin Atlantic Airways, Royal Bank of Scotland (RBS), TaylorWessing, BritishAmerican Business (BAB), and Blick Rothenberg. “We are thrilled to announce the winners of The GREAT Tech Awards tonight, which represent the best of the UK-US tech industry,” said Danny Lopez, British Consul-General to New York. “We have seen exponential growth in tech clusters in both UK and US cities in recent years, and it’s no coincidence. Winners will embark on a journey of international expansion in the best country in Europe to grow a business, and these bespoke development packages will provide a helpful boost for these companies to succeed.” The five category winners receive a customized package that includes: a premium economy round-trip airplane ticket provided by Virgin Atlantic Airlines departing from JFK on October 14, and returning from LHR on October 19, 2013; a meeting with a senior representative at the UK Prime Minister’s Office, No. 10 Downing Street; over $4,000 worth of legal services courtesy of TaylorWessing; $3,000 worth of accountancy/business advisory services provided by Blick Rothenberg LLP; a two-day customized business development program in London (15-16 October); three classes at General Assembly in London; one entry pass to London’s Wired 2013 Conference (17-18 October 2013); an introductory meeting with a major British brand to be selected by a sponsor; a tour of co-working and shared office spaces in London; a free annual corporate membership with BAB in either London or New York’s chapters; a complimentary Gold Ticket Registration to the BAB Christmas Luncheon (in either London or New York); inclusion in a feature on the winners in BAB New York’s Network magazine. The Advisors’ Choice winner’s prize package includes: a business reception hosted by the British Consul-General New York at the British Residence; a free annual corporate membership with BAB in either London or New York’s chapters; three classes at General Assembly in London; a complimentary Gold Ticket Registration to the BAB Christmas Luncheon (in either London or New York); inclusion in a feature on the winners in BAB New York’s Network magazine. Judges include: Ben Lerer, CEO/Co-founder of Thrillist Media Group and partner at Lerer Ventures; David Karp, CEO/Founder of Tumblr; John Borthwick, CEO/Co-founder of Betaworks; Margaret Dohnalek, Global Head of Technology Scouting, PepsiCo; Simon Bradley, Vice President Marketing, North America, Virgin Atlantic Airlines.