Cheers to China

In a meeting today with Shuping Zhi, Deputy Minister for General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), the First Minister was reassured that the Chinese Government would shortly introduce Geographic Indication (GI) of Origin Status to Scotch - a move that will provide additional legal protection against imitations, ensuring all products labelled as Scotch Whisky must come from Scotland.

Stewardship Code for Institutional Investors

In his report on the governance of banks and other financial institutions, published in November 2009, Sir David Walker recommended that the FRC’s remit should be extended to cover the development and encouragement of adherence by institutional investors to best practice in stewardship of UK listed companies; that the FRC should ratify and regularly review the Code on the Responsibilities of Institutional Investors issued by the Institutional Shareholders’ Committee (ISC); and that this Code should operate on a “comply or explain” basis with appropriately independent monitoring.The Stewardship Code is due to appear on 2nd of July 2010

FSA publishes annual report for the year 2009/10

The Financial Services Authority (FSA) has published its Annual Report, outlining its performance against the priorities set out in its 2009/10 Business Plan and the FSA's statutory objectives.
In his foreword, FSA chairman, Adair Turner, commented that over the last three years, the FSA has transformed its approach to regulation and supervision and as a result, has had to go through a process of intense internal change

BVCA Emergency Budget Submission 2010Ahead

Ahead of the June 2010 Emergency Budget by the new coalition government, the BVCA has taken the opportunity to raise and re-highlight issues with HM Treasury for consideration.
1. Maintaining a stable and competitive tax framework, particularly on capital gains
2. Ensure the EU AIFM Directive does not undermine the private equity and venture capital industry
3. Encourage investment to bring about the transition to the low carbon economy through the creation of a Green Investment Bank

Scotland 's enterprise activity falls to 'worrying' low

Business start-up rates in Scotland fell significantly below UK rates last year, and to their lowest since recording began in 2000, according to research by academics at the University of Strathclyde.
The Global Entrepreneurship Monitor (GEM) 2009 found that Scotland's rate of total early stage entrepreneurial activity, which includes proportions of people setting up businesses or owning and managing new businesses, was among the lowest in 20 developed countries that participated in the survey.

IIFM embarks on series of industry workshops on hedging and Tahawwut Master Agreement

In March, the International Islamic Financial Market (IIFM) in collaboration with the International Swaps and Derivatives Association (ISDA) published the much awaited ISDA/IIFM Tahawwut Master Agreement. The agreement is a framework or governing document and has been welcomed as an essential step in the development of the market for Shari’ah compliant hedging transactions. It is the first step towards bringing a full set of definitions, confirmations, necessary law reforms and other benefits to the Islamic Financial Services Industry over a period of time.

BCC sets next Government 90 day challenge to prove business credentials

With the General Election just days away, the British Chambers of Commerce (BCC) has challenged the next government – whatever its composition – to put business at the very heart of its thinking from day one in charge.
The BCC has published a 90 day plan for business growth, a prescription to return our economy onto a sound and sustainable footing. The organisation argues that failure to implement these measures will mean a slower, or even non-existent, recovery.

Revolution or Evolution: Information Security 2020

This roadmap was commissioned by the Technology Strategy Board and jointly prepared with PricewaterhouseCoopers LLP (UK). The research focuses on the commercial aspects of Information Security, but remains cognisant of trends in cyber security and warfare for military and intelligence applications. The research primarily illustrates trends in the UK Information Security market, but the implications are relevant globally.

Directors of ALSTOM arrested in corruption investigation following raids on nine properties

Three members of the Board of ALSTOM in the UK have been arrested on suspicion of bribery and corruption, conspiracy to pay bribes, money laundering and false accounting, and have been taken to police stations to be interviewed by the Serious Fraud Office.

Six arrested in FSA and SOCA insider dealing investigation

In the first operation carried out jointly between the Financial Services Authority (FSA) and the Serious Organised Crime Agency (SOCA), 16 addresses have been searched this morning in London, the South East and Oxfordshire in the FSA’s largest ever operation against insider dealing.
Documents and computers have been seized from residential and business premises.
Six men including two senior city professionals at leading city institutions and one city professional at a hedge fund have been arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring.

FSA publishes Business Plan for 2010/11

The Financial Services Authority (FSA) has today published its Business Plan setting out its priorities for 2010/11.

Relentless flow of employment law is stifling UK competitiveness, says BCC

The relentless flow of complex employment law is stifling UK competitiveness and risks future job creation, according to a new report by the British Chambers of Commerce (BCC).

Bank payroll tax

Further changes to the scope of bank payroll tax in relation to capital resources requirement, excluded companies and banking groups have been announced.

FRC Statement on issues raised in report on Lehman Brothers

Following the publication of the recent report on Lehman Brothers, the FRC is ascertaining the facts on how the “Repo” transactions were accounted for and audited in the UK in order to determine any implications. To that end, we have asked Ernst & Young to provide further information in relation to what happened in the UK.

FSA and Police contact 1,000 share fraud targets after seizing another boiler room 'master list'

The Financial Services Authority (FSA) and City of London Police (CoLP) have contacted 1,000 people across the UK to warn them that their personal details are on a ‘master list’ being used by fraudsters to target and sell them worthless shares.

Making Corporate Reports Readable

The Institute of Chartered Accountants of Scotland's publication Making Corporate Reports Readable demonstrates that it is possible to produce a corporate report in less than 30 pages which tells management’s story of what is important – eliminating the boilerplate narrative and providing decision-useful information

Assessing possible sources of systematic risk from hedge funds

In the conclusion to this report, the FSA state that:-
The results from this survey work were mostly in line with our expectations. The HFACS data suggests that on 31 October 2009 major hedge funds did not pose a potentially destabilising credit counterparty risk across the surveyed banks.

FSA returns £270,000 to victims of share fraud

The Financial Services Authority (FSA) has recovered approximately £270,000 as a result of action taken against companies involved in a share fraud activity.

Framework to give businesses greater certainty on tax policy

The Government has published a draft Tax Framework for business. Developed in discussion with the Business-Government Forum on Tax and Globalisation, the document is intended to provide greater certainty for large businesses about the Government's approach to the development of tax policy

Finance is fighting to function finds PwC study

A new study by PricewaterhouseCoopers LLP (PwC) into the effectiveness of the finance functions at over 100 of the top 200 FTSE companies and international companies, has highlighted a gap between the expectations of business leaders for their finance functions and the role the functions actually perform.

Faculty blasts rights of audience review

Severe criticisms of the Thomson review's draft recommendations on rights of audience in Scotland's supreme courts have been unleashed by the Faculty of Advocates.

In its response, published today, to the review carried out by banker Ben Thomson, at the request of the Scottish Government, the Faculty claims that the report contains “fundamental deficiencies”.

Maintaining financial stability across the United Kingdom's banking system

Banks are vital to the functioning of the economy. In 2007, financial institutions across the world began to encounter difficulties raising the funds needed to keep their operations going, leading to a crisis of confidence in the banking system. In response, governments have intervened to support the financial system.
The complexity of the problems across the financial sector and the speed with which events unfolded presented the Treasury and the other Tripartite Authorities with a formidable challenge.

FSA chief executive officer to step down in the summer

The Financial Services Authority (FSA) today announces that Hector Sants will leave the organisation in the summer of 2010, after three years as chief executive officer (CEO).

FSA outlines latest steps to address corporate governance at firms

The Financial Services Authority (FSA) has today issued a Consultation Paper (CP) on effective governance standards within firms.

Tax Group warning over 'code mistake'

HM Revenue and Customs (HMRC) are being urged to do more to alert people that they may have been sent the wrong tax code.
The Chartered Institute of Taxation (CIOT) is calling on HMRC to be proactive and mount a publicity campaign to highlight that wrong information is being sent out to huge numbers of people that, unless corrected, may cost them hundreds of pounds.

The Audit Firm Governence Code

With a committee chaired by Norman Murray, the introduction to this publication states:
The Audit Firm Governance Code (the Code) is intended to assist in promoting continuing confidence and choice in the market for the audit of listed companies and should be relevant to everyone who sees audit as playing a vital role in a market economy. The primary purpose of the Code is to provide a formal benchmark of good governance practice against which firms which audit listed companies can report for the benefit of shareholders in such companies.

CBI reacts to Obama bank regulation plan

Responding to the announcement by US President Barack Obama to make major regulatory reforms to the banking sector, Richard Lambert, CBI Director-General, said:
"A unilateral move of this nature undermines the considered G20 approach for effective global reform."

Government fulfils its pensions promise helping thousands who lost their savings

Thousands of people who lost pensions when their employers went bust will get at least 90 per cent of their pensions guaranteed, as the final phase of the Financial Assistance Scheme (FAS) regulations are put before Parliament. The Government will pay out £3.5 billion to around 150,000 people.
Minister of State for Pensions Angela Eagle said:
“The Government is completing its promise to provide a just and final settlement for those who lost pension savings when their employers went bust. There can be few greater cruelties than to find the pension you have earned has suddenly disappeared through no fault of your own. That is why the Financial Assistance Scheme, which we are completing with these regulations, is so important to around 150,000 people.”

Banks are different: should accounting reflect that fact?

Speech by Adair Turner, Chairman, FSA
The Institute of Chartered Accountants in England and Wales (ICAEW), London
London, 21 January 2010
FSA chairman, Lord Turner,called for close engagement between global accounting standard setters and those responsible for prudential regulation of the banking sector to address issues arising from the unique systemic nature of banks.

FSA fines Standard Life £2.45m for serious systems and controls failures

The Financial Services Authority (FSA) has today fined Standard Life Assurance Limited (SLAL) £2.45m for serious systems and controls failings that resulted in the production of misleading marketing material for its Pension Sterling Fund (the Fund). There were approximately 98,000 retail consumers invested in the Fund as at 23 December 2008.

Banking on the State

In the conclusion to their paper 'Banking on the State',and looking back to the last 800 years, Andrew Haldane and Piergiorgio Alessandri of the Bank of England,state:
For the majority of this period, the state was reliant on the deep pockets of the banks to finance periodic fiscal crises. But for at least the past century the pendulum has swung back, with the state often needing to dig deep to keep crisis-prone banks afloat. Events of the past two years have tested even the deep pockets of many states. In so doing, they have added momentum to the century-long pendulum swing. Reverting direction will not be easy. It is likely to require a financial sector reform effort every bit as radical as followed the Great Depression.

'20/20 VISION' - TWENTY LEADING FIGURES GIVE THEIR VIEWS ON THE FUTURE OF THE UK FINANCIAL SERVICES INDUSTRY

On 20th anniversary of the CBI/PwC Financial Services Survey


The competitiveness of the UK's financial services sector is more likely to be undermined by the uncertainty surrounding future regulation of the industry, than by further aftershocks from the recent crisis. That is the view of leading industry figures featured in The Future of Financial Services, which is published today (Monday) to mark 20 years of the CBI/PwC Financial Services Survey.

£25.6bn employment bill risks job creation and recovery, argues British Chamber of Commerce

New research from the British Chambers of Commerce (BCC) reveals that upcoming employment regulations and taxes will cost UK businesses a staggering £25.6 billion over the next four years, which could adversely impact on future job creation.

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.

New journals received

Today we have received new issues of 'Abacus', 'Financial management', 'Pensions World' and 'Recovery'. 'Abacus' has an article on replacing 'true and fair view' with 'acceptable risk of material misstatement'. It also has an article called 'Audit fees, non-audit fees and auditor going-concern reporting decisions in the United Kingdom'. 'Pensions World' has an interview with the ex-President of the Faculty of Actuaries and an article on training courses for trustees. 'Recovery' has articles on insolvency in the construction industry, and on the administration of PPP firm Metronet. 'Financial Management' has extracts from a speech by the Chief Economist at Bank of China International on China's "economic miracle" and articles on charitable sponsorships for companies and user-friendly annual reports.

New books received

We've recently recently received new editions of two of CCH's Industry Accounting and Auditing Guides. These are for Clubs and Associations, and for Doctors and will be a valuable guide to any accountant with clients in these sectors. Also new is the STEP Accounting Guidelines for the preparation of trust and estate accounts in England and Wales. These publications are all available to borrow from the Information Service - please phone (0131 347 0138) or email us for further details, or have a look on our library catalogue.

New journal issues received

There is an interesting article today in Times Higher Education on the huge expansion of higher education in the Gulf and the opportunities it offers UK academe. Taxation has articles on the joint HMRC/Treasury consultation document on tax relief for travel expenses, and on HMRC investigations.