Financial Times FT.com

Blackstone drops accounting plan

By James Mackintosh in London

Published: June 5 2007 19:17 | Last updated: June 5 2007 19:17

Blackstone has dropped controversial plans to book profits at the time of a leveraged buyout, knocking $595m off last year’s pro-forma earnings even as the private equity group finalises a $34bn float.

The group had planned to adopt a new fair value accounting standard, which would have allowed it to treat some of its fees as though they were options it acquired for nothing at the time of a buyout – allowing it to record their value immediately.

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