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Accounting Fraud

Bishop Hill has done all the hard work on a Government accounting "change" which helps Gordon but in the private sector would be considered fraud.

"The Office of National Statistics has decided that it will now treat road repairs as capital rather than revenue expenditure."

It sounds dull but it this sort of underhand skullduggery that bloggers should be uncovering.


The point is that this (booking maintenance as capital investment) is not a minor or debatable accounting point -- it is EXACTLY what WorldCom were done for.


The suit was filed the day after WorldCom announced it would restate its financial reports for 2001 and the first quarter of 2002 after discovering accounting irregularities that totalled nearly $4 billion. The company also fired Chief Financial Officer Scott Sullivan and accepted the resignation of David Myers, the company's senior vice president and controller. ***The accounting issues were the result of the company booking expenses improperly as investments***, which the SEC charges was done to hide losses.

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