Audit regulator looking into Manchester City accounting
Summary
The UK audit regulator, the Financial Reporting Council (FRC), is investigating accounting concerns at Manchester City football club. This follows findings that City broke Premier League financial rules by overstating their finances by over £900 million, a verdict the club is appealing.Key Facts
- The FRC took over the case from the Institute of Chartered Accountants in England and Wales on September 30.
- No formal investigation has started yet; the FRC is currently making inquiries.
- Manchester City was found guilty of breaking financial rules between 2009-10 and 2017-18 by inflating their financial position.
- The club is appealing the independent commission’s verdict, claiming errors in the decision.
- The FRC oversees accounting standards in large companies and can sanction auditors and club officials if rules were broken.
- BDO, Manchester City's auditor and one of the UK’s largest accounting firms, is under review to check if their audit followed rules.
- The independent commission said City misled auditors about how shareholder funds were disguised.
- Government and lawmakers are discussing the need to give the FRC stronger powers to hold clubs and directors accountable.
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