Accounting / Marshall: disclosure of the impact of IFRS 9, 15 and 16

As the year draws to an end, it is essential when preparing the next set of financial statements to consider the impact of new IFRS standards on revenue recognition, financial instruments and leases. Andrew Marshall FCA, senior technical partner at KPMG stresses that informed disclosure reporting is vital

Audit / Morris: rotation exposes auditors to increased risk of claims

Mandatory tendering and rotation in audits could leave auditors increasingly open to claims against them, up to and including negligence, says partner at law firm RPC Rob Morris

Tax / Scotland to introduce two new tax bands

Income tax is to increase for Scottish taxpayers in the middle income bracket after finance secretary Derek Mackay announced radical reform in his Budget

Accounting / CAI members and ex-execs of AssetCo face FRC disciplinary tribunal

Three former senior executives of AssetCo, who are all members of Chartered Accountants Ireland (CAI), are to face a Financial Reporting Council (FRC) disciplinary tribunal in the new year in relation to the preparation and approval of the AIM-listed company’s financial statements

Audit / Auditors need to ensure climate risk reporting up to standard

International charity ClientEarth is warning auditors who fail to take adequate account of climate-related risk reporting requirements could find themselves facing regulatory and legal challenges

Accounting / FRC amendments claim to simplify FRS 102

The Financial Reporting Council (FRC) has completed the first triennial review of FRS 102 and has announced a package of amendments to address implementation issues identified since the new UK GAAP was introduced in 2015, in a bid to make the standard more cost effective and easier to use

Tax / Budget 2017 briefing: key measures at a glance

In our roundup of Budget 2017 essentials, we review the key tax measures announced in a slimline event, from £155m allocated to combat tax avoidance and evasion to HMRC adopting a points-based penalty system for late tax returns, digital companies face royalty tax, capital gains tax indexation allowance frozen

Insight / Firms challenged to do more to encourage diversity

Accountancy firms are being challenged to do more to encourage socio-economic diversity, after a major international study found that while three quarters of candidates for accounting positions attended a state school, the success rate for privately-educated applicants was 14% higher

Insight / Investigation into Bristol disability charity

The Charity Commission has opened a statutory inquiry into the Darren Wright Foundation, after receiving complaints about difficulties in communicating with the charity and concerns about accessing funds intended for beneficiaries

Audit / Kingston Smith in pioneering artificial intelligence move

Kingston Smith is to be the first European adopter of an innovative artificial intelligence (AI) solution to improve audit analytics, supplied by Canadian fintech start-up MindBridge Ai which has also completed trials of the technology with the Bank of England

Technical Alerts

13 Dec 2017

Accounting / Companies Act 2006 Part 5: naming a company

This article, the fifth in our series on the Companies Act 2006, will focus on company names and the implications surrounding prohibited and similar names and the process of changing a company name

Insight / 2018: what's in store for accountants in the year ahead?

From endless speculation about the effect of Brexit on business and jobs to the tax implications of the gig economy, the arrival of three major IFRS standards on revenue recognition, financial instruments and leases, not to mention the challenges of recruiting and retaining great staff, Rachel Willcox talks to leading tax and accounting experts about their concerns and hopes for 2018

Accounting / Improving transparency on human rights reporting in annual reports

Improving supply chain transparency and human rights reporting is becoming increasingly important for companies. Mazars business and human rights partner Richard Karmel gives some tips and advice on how to to report the role and value of human rights policy in annual reports 

Accounting / IASB issues minor amends to four IFRS standards

The global standard setter, the International Accounting Standards Board (IASB), has issued minor amendments to four IFRS standards including IFRS 3 Business Combinations and IAS 12 Income Taxes

Tax / Facebook swaps Irish tax arrangement for local bookings

In a significant shakeup of its tax structure, US tech giant Facebook is to abandon its previous tax arrangement, whereby all advertising revenue was routed via its international headquarters in Ireland, and instead book sales in the country in which they take place

Tax / Tax advisers need to update old Windows operating systems

HMRC is advising agents and accountants to update old Windows operating systems such as Windows 7 to ensure that client data is protected and cannot be breached by hackers, stressing that under HMRC Agent Standards advisers are responsible for protecting clients' data and confidentiality

Accounting / FCA consults on firms’ transition to senior managers’ regime

The Financial Conduct Authority (FCA) is consulting on its proposals outlining how firms and individuals will convert to the senior managers and certification regime which aims to make individuals more accountable for their conduct in financial services

Tax / HMRC loses appeal on single farm payment VAT charges

HMRC has lost an appeal at the Court of Session in Scotland over the rights of farmers to reclaim VAT on the purchase of single farm payment entitlements (SFPEs), in a decision which has far-reaching consequences for a range of taxpayers including farmers and the not-for-profit sector

Insight / Multiyork loses 112 jobs in administration

Allan Graham and Matt Ingram, managing directors at Duff & Phelps and joint administrators to Multiyork Furniture Ltd, have announced that the company will begin a process of orderly wind down with the loss of 112 jobs, after no acceptable buyer emerged for the retailer

Insight / Jail sentence takeaway for fraudulent curry house owner

The owner of an Indian restaurant in Staffordshire has been jailed for two years after test purchases by HMRC inspectors of meals at his curry house revealed a £90,000 tax fraud

Accounting / FRC’s lab wants push on use of digital reporting

The Financial Reporting Council’s (FRC’s) financial reporting lab is pushing for wider use of XBRL (eXtensible business reporting language) as a way of meeting new digital reporting needs, but says regulators, companies and technology providers need to work more closely together

Technical Alerts

12 Dec 2017

Tax / Hallam: government anti-VAT fraud proposals have teeth

As the government seeks to curb online VAT fraud after additional measures were announced in the Budget, Nicholas Hallam considers what impact the policy might have

Accounting / IFRS 9 Financial Instruments: tips and advice for implementation

In the last weeks of the year, any companies reporting under IFRS but not operating in the financial services sector per se, need to consider the implications of IFRS 9 Financial Instruments. Steve Hubbard, director, DPP accounting & reporting at KPMG LLP examines some of the critical issues to consider

Tax / European finance ministers challenge US tax reforms

Chancellor Philip Hammond and four other European finance ministers have sent a warning to the US administration over its planned overhaul of the US tax system, saying the reforms risk breaching the country's double taxation treaties and could be at odds with World Trade Organisation (WTO) rules

Tax / Case: late non-resident CGT filing appeal allowed in Saunders

A taxpayer's appeal against the issuing of late filing penalties by HMRC, after she failed to file a non-resident Capital Gain Tax (CGT) return on time, was allowed by a First Tier Tribunal (FTT) after it found that there was a reasonable excuse

Insight / Views on business ethics improving slowly

Trust in business behaviour has nudged upwards slightly over the past year, but tax avoidance and executive pay remain the top issues business needs to address, according to the annual survey conducted for the Institute of Business Ethics (IBE)

Tax / Scrap merchant owing £9.6m heads tax defaulters’ list

Scrap dealer Premier Metals (Leeds) Ltd tops this quarter’s list of deliberate defaulters published by HMRC, paying a £4.7m fine for failure to pay £9.6m of tax owed for the period April to September 2013

Insight / Plans for national economic crime centre to tackle fraud

There is to be a new national economic crime centre to tackle high level fraud and money laundering as part of a package of government measures to ramp up its approach to tackling fraud, bribery, corruption and money laundering

Audit / FRC urges auditors to clarify materiality judgments

Auditors need to be more specific with audit committees and in their public reports about the materiality judgments they have made and the impact on the scope, nature and extent of their audit work, according to the Financial Reporting Council’s (FRC) latest thematic review

Accounting / Financial reporting lab seeks input for reporting on performance project

The Financial Reporting Council’s (FRC’s) financial reporting lab is seeking investors, analysts and listed and quoted companies of all sizes to participate in a project on the use and disclosure of performance metrics

Tax / HMRC issues VAT refund interest guidance post Littlewoods ruling

HMRC has published guidance underlining the ruling that statutory interest in case of refunds for overpaid VAT is all that is required, not compound interest, following the Supreme Court judgment in the case brought by Littlewoods Retail Ltd

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