ACCOUNTING POLICIES FOR BT

Accounting Policies for BT (British Telecom) and Cable & Wireless



Accounting Policies for BT (British Telecom) and Cable & Wireless

Anecdotes (investors and analysts) of the user part of the retirement benefits fascinated, as a sell-side analysts from many institutional buyers retirement benefits funded by the trustees last point, so the whole thing a bit strange circle. Second, even if outsiders circle detail, the financial director to run a large design, such as British Telecom's retirement benefit retirement benefit design funds, will buy companies like Aga, who has retirement benefits design; it will be about 10 times The Company's market capitalization size. So they buy, in many cases, the efforts of their competitors.

Investors and analysts need to design the survey data relating to retirement benefits, but the key is: What is the real desire of investors and analysts, from accounting, disclosure and retirement benefits?

I believe there are four places, investors and analysts gaze.



1. They are eager to learn about commitment, from the production source of future retirement benefit obligations.

2. They want to know whether there are any assets to hedge or try and pay this debt.

3. They want to see reduction in revenue and accounts; the company's presentation is by its commitment to its workers during the production of some influence.

4. They also want to have an understanding of money flows to these commitments has nothing to do.

During the responsibility now is the present value of analyst estimates in some sort. We are eager to investigate 'the terms of today's money,' what kind of responsibility allowance. (Crandall et al, 2008) Now, obviously would be very difficult. Analyst's good things are very similar to the perfect understanding of the long-term adversity. Therefore, it is perfectly happy uncertain, we are quite happy the organization, but basically we want to have a present value of debt type. (Monbiot, 2010)

Now, of course, directly leads to two problems.

1. What is the discount rate?

2. What should you take to span the commitment you made promises in the future you want to give a detailed account of the impact?

Of course, we do not announce future wages because they do not agree. But when you pledge your commitment to retirement benefits, if you make a wage increase in the future, you will add on top of a retirement benefit. This is not as simple as saying: 'But we have not yet committed to,' because in a way you've done. There is a saying here, I do not believe management is so simple answer. (May 2008)

The first is the discount rate; I think there is a very direct response to this. This is a business do not like it simple: use a risk-free discount rate. Is clean, it's simple, it is not correct, but it's easy! In addition to any other discount rate is not correct, there is no advantage is that one of them. We might as well not have one is so much smaller than the noise ...