Auditors have been making double-digit million losses for years.
At Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (EY) in Germany, “equity” is on the assets side, namely as a “deficit not covered by equity” in the amount of € 62,715,000. The provisions, liabilities, deferred income as well as deferred taxes and fiduciary obligations exceed the company’s assets by an eight-digit amount in euros within a year. Receivables against this company are therefore no longer fully covered by assets on the balance sheet.
The trend line that had to be shown here for equity and equity ratio for EY on March 3, 2021, continues as expected. According to the consolidated financial statements and group management report as of June 30, 2020 of the Stuttgart-based parent company, the company no longer has any equity. Turnover was weaker than that of the other large auditors in Germany.
Under the chairman of the supervisory board, Georg Graf Waldersee, the German company has only made losses for years. This is also the case in the current reporting period. In the consolidated income statement for the financial year from 07/01/2019 to 06/30/2020, the consolidated net loss for the year is stated at € 49,608,000.
The billions in damages from the Wirecard scandal are not included: “In connection with the Wirecard case before and after the balance sheet date, claimants attempted to assert civil claims against us with out-of-court letters. On June 30, 2020, we were served complaints from investors that were judged to be unfounded both internally and by the law firms commissioned to defend us.”
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One response to “Ernst & Young No Longer Has any Equity on its Balance Sheet”
On July 21, 2021 the company called “Scope SE & Co. KGaA”, published some “company news” as follows: “In becoming Chairwoman of Supervisory Board, Inès de Dinechin succeeds Georg Graf Waldersee, who was not available for a further term of office due to the extent of his involvement in other supervisory boards and significant board activities in an honorary capacity. Shareholders, the Supervisory Board and the Management Board would like to thank Graf Waldersee for his long-standing commitment and important contribution to the development of Scope Group.” According to the press release of the company, the Supervisory Board of Scope SE & Co. KGaA is now made up of Inès de Dinechin (Chairwoman), Carsten Dentler (Deputy Chairman), Sebastian Canzler, Chantal Schumacher and Eberhard Vetter.