Telecomputing Plc has run afoul of the problems of accounting for software development costs and says it now believes that reported profits, particularly for the half year to March 1989 may have been too high: the company has been capitalising its research and development costs – to the tune of UKP1.5m over the past three years – rather than writing them off against profits; a new firm of accountants has been called in to produce a report on the company’s accounting policies – likely to lead to the company reporting a loss for the year to September last; the news clipped 8 pence off the shares at 85 pence; Ferrari Holdings Plc bought a 29.8% stake in Telecomputing in November.
