Autonomy was acquired by Hewlett-Packard (HP) in October 2011. The deal valued Autonomy at $11.7 billion (£7.4 billion). Within a year, HP had written off $8.8 billion of Autonomy's value. With reference to the relevant and appropriate accounting theory.

You are required to identify and critically discuss the main financial accounting issues relating to this scandal.

Answer rating: 100% (QA)

The acquisition of Autonomy by HewlettPackard HP and the subsequent writeoff of its value raised several financial accounting issues and sparked a significant scandal The main financial accounting iss... View the full answer