Treasury Commissioned Report on British Offshore Financial Centres published

The final report of Michael Foot’s Review of the opportunities and challenges facing the British Crown Dependencies (Guernsey, Isle of Man, Jersey) and six Overseas Territories (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Turks and Caicos Islands) was published on 29 October. The full text of the report is available online. Also published at the same time was Deloitte's report on tax avoidance by UK companies using these centres and the amount not being paid in tax. A combined report is also available.

New ASB report on annual reports

The Accounting Standards Board, part of the Financial Reporting Council, has published a report on the state of narrative reporting in annual reports. It focused on: how companies are complying with the enhanced business review content requirements from the Companies Act 2006 (CA); effective communication and presentation of the required content; and areas that are leading to clutter in narrative reporting. The full text of "Rising to the challenge" is available on the FRC website.

UK private businesses call for tax certainty

Private businesses want to see a more stable tax regime that will support and encourage growth according to The Enterprising UK 2009 survey published by PricewaterhouseCoopers.
Head of UK private business at PwC, Mary Monfries, states " Private business is calling for a stable, certain tax environment in which to conduct their business successfully".

SFO settles Amec 'irregular receipts' case for £5m

The Serious Fraud Squad has agreed a civil court settlement of £4.9m with the engineering group Amec concerning $9m of 'irregular receipts' that the company took in relation to the construction of the Incheon Bridge in Korea.

Herald article on plan fo larger state role in bankruptcy cases

There was an article in the Herald newspaper on 26 October on reactions to the Scottish Government's proposals to part-nationalise the management of personal bankruptcy. ICAS is one of the organisations giving a response.

Report calls for new green taxes

A report published by the Green Fiscal Commisson on 26 October 2009 is calling for a green tax shift which would allow government to deliver economic as well as environmental benefits. Among the things that it calls for are a levy on new cars and an increase in fuel duties.

NAO report on the perception of red tape by business

A survey of businesses the National Audit Office (NAO) has been published which found that "almost no businesses think that complying with regulation has become easier or less time consuming in the last year. The majority think that things have remained the same and over a third think that the burden of regulation has got worse. On the other hand, 42 per cent of businesses think that government is getting the right balance of regulation to protect people and the environment." The full text of the report is available on the NAO website.

Reform public finance report published

Think tank Reform has published a report "The end of entitlement" looking at how the British middle class needs to decide between giving up welfare benefits or having tax increase by 8%. The full text of the report is available on Reform's website.

Results of the latest Deloitte quarterly survey of finance directors

A Deloitte survey of 120 Chief Financial Officers (CFOs) found that financial optimism has reached the highest level since the Survey started in September 2007. However just 14% of CFOs expect a return to normal or trend rates of growth in their markets in 2010. CFOs believe the corporate sector is entering new era of lower gearing and greater financial conservatism.

CBI blueprint for balancing UK public sector budget

The CBI has released a report saying that radical public services reform is needed to deliver savings of £120bn. The full text of the report is available on the CBI website. It is called "Doing more with less: A credible strategy for restoring the public finances".

Government defeated in battle over Equitable Life’s collapse

After a ruling in the High Court issued by Lord Justice Carnwarth, thousands of policy holders of Equitable Life could now receive compensation from the Government. A four part report titled "A Decade of Regulatory Failure" published in 2008 by the Ombudsman, Ann Abrahams, found " serial maladministration" and recommended compensation be reached through an independent tribunal.

Equitable Life: a decade of regulatory failure (HC 815),

FSA outlines its approval and interview process for significant influence functions

The Financial Services Authority (FSA) has written to the CEOs of 5,000 regulated firms to reinforce how its intensive regulatory approach applies to approving and supervising senior personnel performing significant influence functions (SIFs).
The City regulator said that under its new approach to supervision, it would not be happy to rush approvals in a couple of days, and would expect to take part in the short-list stage for large institution appointments.

Lloyd's slashes cash for Scottish charities

Lloyds Banking Group said it was to cut its charitable foundation's funding, worth at least six million pounds a year due to the financial crisis.
Sources at the foundation said that it was inevitable some charities would be forced to withdraw key services.

Impact of Bank easing ' may never be known

Charles Bean, the deputy governor of the central bank told the London Society of Chartered Accountants that the impact on the economy of the Bank of England's multi billion pound scheme of quantitative easing will probably never be known.
He also commented on the recession, saying that the British economy has probably hit bottom, despite fears at the beginning of the year that this recession would continue to deepen.

The APB issues new ISAs (UK and Ireland)

On 13 October the Auditing Practices Board (APB) published 33 new International Standards on Auditing (UK and Ireland) (ISAs (UK and Ireland)); A new International Standard on Quality Control (UK and Ireland) 1 (ISQC (UK and Ireland) 1); and, a revised Statement of the Scope and Authority of APB Pronouncements. These are all available on the APB website.

PwC report says £43 billion fiscal gap needs to be closed by 2015/16

A report by PricewaterhouseCoopers (PwC), "Dealing with (even more) debt", was published on 12 October. The report says that "£43 billion fiscal gap needs to be closed by 2015/16". The full text of the report is available on the PwC website.

Scotsman op-ed by ICAS' Chief Executive

There is an editorial piece in the Scotsman on 13 October 2009 by Anton Colella, the ICAS Chief Executive. It is called "Bonus review will not mean the end of risk-taking bankers".

Planned tax rules could undermine building industry, say accountants

In response to the Treasury consultation: False Self-employment in Construction,The Institute of Chartered Accountants of Scotland says that onerous new tax rules on construction workers and those who engage them could seriously undermine an industry that has been amongst the hardest hit by the recession.

"We are astonished that these proposals have come forward during a recession, since we believe the net result of adopting them would be an increase in unemployment.This is clearly undesirable, and we recommend that the proposals be abandoned. The proposals are flawed, can easily be circumvented and are unlikely to work properly."states Derek Allen, ICAS Director of Taxation.

Tough new laws could hit Big Four services fees

Auditing Practices Board issues a Consultation Paper on audit firms providing non-audit services to listed companies that they audit. "The aim of the APB Consultation Paper is to seek views, especially from investors, on whether there is support for the Treasury Select Committee’s view that investor confidence and trust in audit would be enhanced by a prohibition on audit firms conducting non-audit work for the same company.” Richard Fleck, Chairman of APB commented.

Chairman and Chief Executive relationship 'can be too close'

A too close relationship between chairman and chief executive can be a signal for excessive risk-taking in a company, a high-powered panel of Scottish accountants warned. Guy Jubb, head of corporate governance at Standard Life Investments, told a forum on risk management staged in Edinburgh by the Institute of Chartered Accountants of Scotland that boardroom culture had changed over the past five years, particularly in the financial sector.

OFT fines recruitment agencies for a collective boycott and price fixing cartel

The OFT has imposed fines totalling £39.27 million on six recruitment agencies for price-fixing and the collective boycott of another company in the supply of candidates to the construction industry.

High-speed rail network will include Scotland

In response to Rail Magazine's comments that Scotland would not be included in proposals for a high-speed rail network, Sir David Rowlands, chairman of High Speed Two (HS2) said that Glasgow and Edinburgh were both on the list of primary destinations. He did not say who would fund the network north of the border stating that it was 'a matter for the two governments' to agree on.

IoD response to the Walker Review

On 22 September the Institute of Directors (IoD) released its response to Sir David Walker's review of corporate governance. Their response comments on each of the Review’s recommendations, and considers their applicability to the overall UK corporate governance framework.

Scotland failing entrepreneur test

The Global Entrepreneurship Monitor Scotland 2008 recently launched by the Hunter Centre for Entrepreneurship at the University of Strathclyde found that Scotland's business start-up rate was the second lowest in the UK. Sir Tom Hunter stated "local authorities, now responsible for enterprise service delivery, need to step up to supporting those businesses in their area"

Construction firms fined for illegal bid-rigging

Shares in construction companies dive as builders hit with £130m fine after bid rigging scam is exposed. 103 firms were fined by the Office of Fair Trading after an investigation into bid rigging and competition distortion that drove up project costs.

LibDems economic recovery ideas

Vince Cable's speech to the Liberal Democrats conference in Bournemouth, including the plan to tax £1m-plus properties

NAPF 'quality mark' introduced

The National Association of Pension Funds (NAPF) has launched a scheme designed to make pensions easier to understand and more attractive for employees. Marks & Spencer and Standard Life are among the first to receive the award.

BCC manifesto published

The British Chambers of Commerce (BCC) have launched their manifesto 'Delivering for Britain: A Business Blueprint For Opportunity, Jobs and Growth'. It has the organisations priorities for speeding up Britain's economic recovery.

Letter from Chairman of BBA on banking regulation

Stephen Green, Chairman of the British Bankers' Association (BBA), has written to Gordon Brown and other policy makers to ask that excessive regulation for banks isn't introduced at the forthcoming G20 meeting. The full text of the letter is available on the BBA website.

ICAS conference

There have been a couple of articles recently reporting on the ICAS conference held in Dunkeld last week. These include an article in the Scotsman 'Industry 'asset rich but cash poor' and in the Press & Journal 'Take action to reduce risk, farmers are told'.

Accountants angered by tax advice plan

Article in 'Scotland on Sunday' on 20 September regarding HMRC's proposals to treat all tax advisers the same regardless of whether they're members of a professional body or not.

Insider fraud on the increase over the last 12 months

Analysis by CIFAS, a UK Fraud Prevention Service, looking at staff frauds filed during the 12 months from July 2008 to June 2009 reveal some shifts in the frauds. These included:
Dishonest actions by staff to obtain benefits by theft and deception increased by 69% in the first half of 2009 compared with the last half of 2008
Dramatic increases in the numbers of women being identified as staff fraudsters, and
Customer vigilance and alertness is increasingly valuable to businesses in the fight against fraud.

Lord Turner on the 'social values' of banking and the 'Tobin tax'

There is an article in today's Daily Telegraph on the FSA Chairman Adair Turner on how banking has to change. The original Prospect Magazine article is available on their website (subscribers only). The article also talks about his views on the "Tobin Tax" on financial transactions. There is also coverage in the other UK broadsheets over the last couple of days including the Guardian.

USA and Switzerland sign agreement related to tax evasion

The US and Swiss governments have signed an agreement which will give the Internal Revenue Service (IRS) access to information that Swiss Bank UBS has on the names of 4,450 US citizens who have offshore accounts with the bank. The agreement can be found on the IRS website.

Interview with ICAS President in the Herald

On Saturday 15 August there was an interview in the Herald with current ICAS President Douglas Nisbet - "Let's stand up and be counted". The interview is also available as a podcast.

Research on decline of final salary pension schemes

Research by pension consultants Watson Wyatt has found that half the UK companies with defined benefit pension schemes expect to have closed them to all employees by 2012, according to an article in the FT on 18 August 2009.

FT op-ed on fair value accounting

On 18 August the Financial Times published an op-ed entitled "Disclose the fair values of complex securities" written by Robert Kaplan, Robert Merton and Scott Richard on fair-value accounting for asset holdings for banks and other financial institutions.

Tax Information Exchange Arrangement signed between the United Kingdom and Liechtenstein

On 11 August the UK and Liechtenstein signed an agreement on the exchange of tax information. The full text of the Memorandum of Understanding is available online.

SFO announcement re MG Rover case

The Serious Fraud Office (SFO) announced on 11 August that it won't pursue a criminal investigation in relation to the case of MG Rover's collapse.

ASB seeks views on proposals for the future reporting requirements for UK and Irish entities

The Accounting Standards Board has issued a consultation paper ‘Policy Proposal: the future of UK GAAP’, which sets out its proposals for the future reporting requirements for UK and Irish entities. Deadline for responses to the Consultation Document is 1 February 2010. The full text of the paper is available on the ASB website.

Guardian article on Deloitte's role as auditor of MG Rover

There was an article in the Guardian newspaper on 13 August on the role of Deloitte as auditor of the collapsed firm MG Rover.

FSA confirms introduction of remuneration code of practice

The Financial Services Authority (FSA) has introduced a new code that will require large banks, building societies and broker dealers in the UK to establish, implement and maintain remuneration policies consistent with effective risk management.
The new code is designed to achieve two objectives: firstly, that boards focus more closely on ensuring that the total amount distributed by a firm is consistent with good risk management and sustainability; and secondly that individual compensation practices provide the right incentives. The full text of the report is available from the FSA website.

FTSE 100 pension scheme report released

Publication of the annual report into the pension schemes of the FTSE 100 companies by actuaries Lane Clark & Peacock.

Centre for Policy Studies report on benefits and tax credits

The Centre for Policy Studies released a report on Monday called "Benefit Simplification: How and Why it Must be Done". The full report is available to download on their website.

Article in the Independent newspaper on pre-packs

Article from Monday 3 August's Independent on pre-pack administrations "Creditors are burnt as troubled companies rise from their ashes"

Taxpayer's Alliance report on lobyists

Pressure group Taxpayers Alliance has published a report saying that all public bodies in the UK should be banned from hiring lobbyists and consultants.

Moore Stephens win legal battle at House of Lords

Moore Stephens has won a House of Lords court ruling limiting auditors liability in instances of fraud, such as the Maddoff case. The ruling was in the case of Moore Stephens (a firm) (Respondents) v Stone Rolls Limited (in liquidation (Appellants).

Dunfermline Building Society report

The UK Government's Scottish Affairs Committee has published its report into the collapse of the Dunfermline Building Society. It is available online.

Treasury Select Committee Report - "Banking Crisis: Regulation and Supervision"

The UK Government Treasury Committee released its final Report following its evidence sessions this year on the Banking Crisis. The Report considers how regulation and supervision have changed, and can be further improved, in order to return to and maintain more stable banking. The full text is available online.

Auditing Practices Board issues an Update to the Bulletin containing Illustrative Examples of Charity Auditor Reports

The APB has issued Bulletin 2009/3 which "updates the example auditor’s reports in Bulletin 2009/1 for the effect of the Companies Act 2006. This Bulletin relates to accounting periods commencing on, or after, 6 April 2008 and supplements the guidance contained in Practice Note 11: ‘The Audit of Charities in the UK’ by providing illustrative examples of auditor’s reports for charities that are registered: In England and Wales, In Scotland, and In both jurisdictions. "
The Bulletin is available to download from the APB website.

Independent newspaper article - "Windfall for Tories as firms eye £4bn contracts"

Article in today's Independent on donations to the Conservative Party which have been made by accountancy firms including PwC and KPMG.

New Treasury Select Committee inquiry requests evidence

The new Treasury Select Committee inquiry on "Women in the City" is looking for written evidence. The inquiry will take evidence on the role of women in the City, developing themes which have emerged in the course of its banking crisis inquiry relating to corporate governance.
The deadline for submitting written evidence is 12 noon on Thursday 10 September and further details can be found on its website.

FCAG publishes review of standard-setting activities following the global financial crisis

The Financial Crisis Advisory Group (FCAG) has published its review of standard-setting activities following the global financial crisis. The Group was formed at the request of the IASB and the US Financial Accounting Standards Board (FASB) to consider financial reporting issues arising from the crisis. The UK member of the Group is Stephen Haddrill, currently Director General of the Association of British Insurers (ABI) who will become the new Chief Executive the Financial Reporting Council (FRC) later this year. The report is available on the IASB and FASB websites.

FRC issues update on the review of The Combined Code

The Financial Reporting Council (FRC) has published a progress report on its review of the effectiveness of the Combined Code of Governance. The review began in March 2009 and the report summarises the results of the consultations and research that the FRC has carried out to date and invites views on various aspects of the Combined Code and its application. The full text of the report is available on the FRC website.

IASB proposes improvements to financial instruments accounting

On 14 July the IASB published an exposure draft of proposals to improve financial instrument accounting for public comment. It can be found on the IASB website. It is open for comment until 14 September 2009.

"The proposals form part of the IASB’s comprehensive review of financial instrument accounting. The proposals, which the IASB believes will significantly reduce complexity and make it easier for investors to understand financial statements, address how financial instruments are classified and measured. The proposals also answer concerns raised by interested parties during the financial crisis (for example, eliminating the different impairment approaches for available-for-sale assets and assets measured using amortised cost). The IASB plans to finalise the classification and measurement proposals in time for non-mandatory application in 2009 year-end financial statements."

FRC Chief Executive Argues Against Changing the Fundamental Purpose of Accounting

On 16th July Paul Boyle, FRC Chief Executive, argued in a speech against proposals to use accounting as a public policy tool to reduce pro-cyclicality. He also challenged the proposition that accounting measures that show volatility should be adjusted to create an impression of stability. The full text of the speech is available on the FRC website.

Walker Review

Sir David Walker's interim report on corporate governance in UK banks has been published and the full text is available on the Treasury website, as is a biography of Sir David.

SFO Annual Report

The Serious Fraud Office (SFO) has published its 2008/2009 annual report. An MP3 interview with SFO Director Richard Alderman giving his assessment of the report is also available.

ICAEW publishes report on SME access to finance

The Institute of Chartered Accountants of England and Wales (ICAEW) has published a report on the lending climate for small and medium sized entities. Commissioned by the UK Government's Business Department, it is based on research carried out for ICAEW by Ipsos Mori. The report is available to download for free.

UKFI publishes Market Investments Strategy and Annual Report

UK Financial Investments Limited (UKFI), the company which was set up to manage the Government’s investments in the banks, has published its strategy for managing the Government’s stakes in RBS and Lloyds today (13 July). The document also contains its first annual report.

IASB publishes IFRS for SMEs

Last week (9 July) the International Accounting Standards Board (IASB) published a new International Financial Reporting Standard (IFRS) for Small and Medium-Sized Entities (SMEs). It's a self-contained standard about 230 pages long which is tailored for the needs and capabilities of smaller businesses, which make up around 95% of businesses.
The standard can be downloaded for free from the IASB website.

Two new HMRC consultation documents

Last week (9 July) HM Revenue & Customs (HMRC) launched two new consultation documents on modernising HMRC powers, deterrents and safeguards. They are available for comment on the HMRC website and the consultations are open until 1 October 2009.

The first document looks at "proposals for modernising and improving HMRC’s information powers, and accompanying safeguards, in two key areas". These are bulk information powers and specialist unnamed taxpayer powers.

The second document looks at ideas for a new and modernised excise checking framework, as well as ways of improving excise administrative procedures, in order to reduce admin burdens for business".

'Reforming Financial Markets' White Paper

The UK Government released its' much anticipated White Paper "Reforming financial markets" today on the Treasury department. This aims to set out the Government’s proposals for the reform of the financial system. The full text of the report is available online (176 pages with a ueful executive summary of around 20 pages).

Welcome back from the ICAS Information Service!

I've been neglecting this blog for far too long and after a very interesting couple of sessions about the use of Web 2.0 in libraries I've decided to dust off the keyboard and start blogging again!



I'll be sharing information about developments in the accountancy world and in related fields like business and management. I hope that you find these interesting and useful. Please let me know what you think.