The accountancy practices of Granada Media, one of the two companies controlling Britain’s ITV network, were called into question over the weekend by the Mail on Sunday, which described them as ‘controversial’.
The MoS report avers that the broadcaster is now reviewing whether it could or should write-off “a large sum” against the value of the two ITV franchises – Anglian and Meridian – it purchased in 2000.
Granada concedes, claims the newspaper, that last year’s operating profits would have ebbed by a cool £57 million ($87.02m; €89.28m) if goodwill on the acquisitions had been depreciated to give a true view of the situation.
Under the conveniently flexible UK accounting rules such practices are perfectly proper. They are not, however, to the liking of investors and by mid-morning Monday, Granada shares had fallen 5.5% on the London Stock Exchange from Friday’s closing price of £0.90 ($1.37; €1.41) to £0.855 at close of trading Monday.
Data sourced from: BrandRepublic (UK); additional content by WARC staff