Results 18,841-18,860 of 27,945 for speaker:Michael McGrath
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: To have a register of sales prices?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Yes. Okay. What level of disclosure is there on a valuation of the assumptions that underpin that valuation? How informative is a valuation document for the reader apart from the figure that it gives for the valuation?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Yes but who is that document made available to?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Right, but not necessarily the purchaser, who may be relying on a valuation?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Yes, I know what you mean. I suppose if an organisation is selling a property and they base the asking price on a valuation, they have that blue book as you call it-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: ----- with the assumptions and so forth. But a prospective purchaser does not have any knowledge of the valuation which underpins the asking price. They can get their own valuation.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: What is the downside to a requirement whereby the seller's valuation, with all of that detail, would be made available?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Thank you.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Thank you very much, Chair, and you are very welcome, Mr. Cullen and Mr. Fitzpatrick. Can I just start by taking, for example, the Ulster Bank Ireland Limited financial statements for 2007 and 2008, which were audited by Deloitte and provided an unqualified, independent audit opinion? In hindsight, knowing now what you know about the bank and the issues that it was facing, would you still...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Can I ask Mr. Fitzpatrick if you held concerns about, for example, the over-exposure of the bank to property lending, the concentration of risk, the possibility of the risk of a collapse in asset values, and you wanted to impart that information to the readers of the financial statements, what options would you have to impart that information on the statements?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: What constraints did IAS 39 place on you in terms of making provisions that if you did ... if you believed that it would be prudent to make provisions, what constraints did that standard place on you?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: When was that standard introduced? IAS 39.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: I suppose the point I'm getting at Mr. Fitzpatrick is that, okay, you were somewhat constrained by IAS 39 and I understand the financial statements are the preserve of the directors and you're performing the statutory audit. But if you had concerns about events that might transpire, there may be a collapse in asset values, but you were constrained from providing for that in the financial...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Okay. An auditor would discuss their findings privately with management and any significant risk would be formally recorded in a management letter. Can you recall any issue which could have potentially led to a qualified audit report but which after discussion with bank management was regarded as not warranting inclusion in a formal management letter?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Can I ask when did Deloitte win the Ulster Bank audit? When did you first carry it out?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: And do you still have it?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Okay, so you won't have it after 2015?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Okay, and can I just ask about the audit fees? There was a very substantial hike in the audit fees from 2009 to 2010. In 2009, the audit fees were €283,000 and in 2010, that jumped to €894,000. What's the reason for that?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: So was it a reporting issue? Is it that you were earning similar fees in previous years but they were sitting in separate bank statements?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Michael McGrath: Okay. So for example, in previous years Deloitte would have received similar levels of fee income from Ulster Bank for the audit?