ICAEW - News
[10/09/2008 07:46:32] On going concern
Given the current economic gloom, market participants need to be extra vigilant in demonstrating that the regulatory frameworks, codes of conduct and industry practice within which they operate are fit for purpose and capable of helping UK plc withstand the downturn.
My own view is that, post-Enron, the incremental changes that were introduced in terms of regulatory oversight and corporate governance reform are generally holding up well - while it is probably little comfort to Northern Rock shareholders - 12 months into the credit crunch the list of UK corporate casualties has been limited.
A useful reminder of current requirements here One important contribution here is a recent consultation paper, issued by the Financial Reporting Council (FRC) on Going Concern
The lLlistings Rrules require public companies to include a statement in their annual reports on going concern – that the company has the capacity to continue its operations for the foreseeable future and has neither the intention nor the need to liquidate or limit its activities.
Historically Company Directors have had to declare one of three positions:
• That they have a reasonable expectation that the company will continue in operational existence for the foreseeable future
• That they have identified factors which cast doubt on the ability of the company to continue in operational existence for the foreseeable future
• That they consider that the company is unlikely to continue in operational existence for the foreseeable future.
The FRC is proposing the inclusion of a fourth prosvitsion, reflecting the requirements of IFRS:
• That they have identified material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern.
Investors need a clear understanding of the ongoing health of the companies in which they invest. OneThe question is whether a fourth provision clarifies or confuses here, whether perhaps the second of the three current provisions should just be aligned better with IFRS.
The Institute is working on a formal response to these proposals which we will publish in due course. In the meantime I would urge all members with an interest in this area to read the consultation document and give due consideration to this important issue.
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[25/04/2008 10:30:26] One step closer to a world of opportunities
Nearly 2,000 students of the Institute of Chartered Accountants in England and Wales (ICAEW) sat their Professional Stage exams in March – the biggest ever March entry. Today more than 81% of them celebrate taking another step towards obtaining the widely respected Associate Chartered Accountant (ACA) qualification.
[26/03/2008 08:45:13] April brings shower of changes for private companies
Small companies are faced with a shower of changes taking place at the start of April as part of the on-going implementation of the new Companies Act, say the Institute of Chartered Accountants in England and Wales (ICAEW).
[05/03/2008 07:42:35] ICAEW calls on Darling to help UK enterprise in forthcoming budget
The ICAEW has called on Alistair Darling to announce a budget that delivers certainty, clarity and fairness in the tax system to ensure the long term international competitiveness of the UK economy
[13/02/2008 01:26:22] Gerald Russell elected as next ICAEW Vice President
Gerald Russell, Chairman of the Audit Quality Forum, has been elected as the next Vice President of the ICAEW.