Financial reporting

Accounting / Companies Act 2006 Part 2: forming a company

This article, the second in our series on the Companies Act 2006, will focus on how to form a company, through to the essential documentation to ensure a new company complies with the legal framework as set out in CA 2006 Part 2

Accounting / FRC to scrutinise Mitie’s 2016 financial statements

The Financial Reporting Council (FRC) has announced a further investigation into FTSE 250 outsourcing supplier Mitie Group, in relation to the preparation and approval of the financial statements for the year ended 31 March 2016, following on from its probe into Deloitte’s audit of the company, which has issued a string of profit warnings

Accounting / FRC to review impact of IFRS 9 and IFRS 15

The Financial Reporting Council (FRC) has announced the topics and areas it will focus on over the next year, which include AIM quoted company reports, the impact of new IFRS standards for revenue and financial instruments, and the effect of Brexit on companies’ disclosures

Accounting / Companies Act 2006 Part 1: pros and cons of incorporation

This article, the first in our series on the Companies Act 2006, outlines the advantages and disadvantages of incorporating a company, taking into account elements such as taxation, ownership, expenses and the withdrawal of capital

Accounting / IASB looking to expand sustainability reporting

The International Accounting Standards Board (IASB) is considering whether to expand its current practice statement on management commentary to include wider reference to environmental and societal issues in corporate reporting, after admitting it is currently ‘silent’ on sustainability

Accounting / EU approves use of IFRS 16 Leases accounting standard

​The European Commission has endorsed the use of IFRS 16 Leases in EU member states following release of the latest IFRS Standards and amendments update

Accounting / FRC publishes thematic report best practice

The Financial Reporting Council (FRC) has published three thematic reports, covering judgements and estimates, pension disclosures and the use of alternative performance measures (APMs), in order to help companies improve the quality of their corporate reporting in acknowledged areas of difficulty

Accounting / IPSASB issues revised cash basis accounting IPSAS

The International Public Sector Accounting Standards Board (IPSASB) has published a revised IPSAS, Financial Reporting under the Cash Basis of Accounting (the Cash Basis IPSAS) in a bid to simplify and encourage wider adoption

Accounting / ICAEW warns FRC against anticipating future legal changes

The Financial Reporting Council (FRC) should step back from trying to anticipate future legislative changes as it updates its reporting guidance, or risk undermining is effectiveness, according to ICAEW

Accounting / PRA note to bank non executive directors over IFRS 9 preparations

The Prudential Regulation Authority (PRA) has published a note for non executive directors on getting ready for the implementation of IFRS 9 Financial Instruments, saying it is important, particularly for those who are also on a firm’s audit committee, to engage with the new standard and challenge management effectively

Accounting / Expert witnesses: what you need to know

Being an expert witness requires expertise and judgment whether in a complex financial accounting case or a contract dispute. Dr Chris Pamplin of the UK Register of Expert Witnesses considers the role of the expert witness, focusing on the key attributes of an expert witness from specialist knowledge to a deep understanding of technical terms and issues

Accounting / Guidance for government bodies on sustainability reporting

The Treasury has published guidance on sustainability reporting in the public sector, outlining minimum requirements, some best practice guidance, and the underlying principles to be adopted in preparing the information

Accounting / Accounting updates: November 2017

In this month’s roundup of developments in accounting and financial reporting, UK needs to align with IFRS post-Brexit, FRC proposes amendments to FRS 102 for Gift Aid payments, intangibles reporting

Accounting / ESMA updates advice on alternative performance measures guidelines

The European Securities and Markets Authority (ESMA) has updated its questions and answers document covering the implementation of its guidelines on alternative performance measures, in a bid to promote common supervisory approaches and practices

Accounting / NAO wants academy schools to improve reporting on land and buildings

Although the Department for Education (DfE) has improved its accounting for the academy schools sector in England, the National Audit Office (NAO) has qualified the accounts for the year ended 31 August 2016 on the grounds the department was unable to provide adequate evidence to support the £45bnn of land and buildings included

Technical Alerts

Accountancy & Audit / EFRAG Update October 2017