Financial Reporting zone

Financial reporting briefs: December 2007

Due to the increasing complexity of international financial reporting standards (IFRS) the ICAEW have launched a new financial reporting faculty. The creation of a dedicated centre for information and support was prompted in part by the ever-growing number of available financial instruments and numerous pensions and share-based payment questions, the Institute said.

The new faculty will assume responsibility for current ICAEW activity in the field of financial reporting and when fully developed will provide strategic technical leadership on key issues, making representations to standard setters and regulators and providing extensive technical and practical information to faculty members.

As well as an operational board chaired by Andy Simmonds, partner at Deloitte, a high level faculty advisory group composed of figures from business, academia, the user community, regulators and the profession has been established. As a 'council of reference', the group’s discussions are intended to place the financial reporting agenda in its broader international and economic contexts.

“The faculty aims to provide members with a trusted and independent external point of reference when dealing with financial reporting issues,” said Robert Hodgkinson, executive director, technical.

Members of the Financial Reporting Faculty Advisory Group are so far:

Ian Brindle (chair), deputy-Chairman of the FRRP
Stephen Cooper, Head of Valuation and Research at UBS Investment Bank and part-time member of the IASB Board.
Phillipe Delsaux, Director of Company Law and Corporate Governance, European Commission
Stig Enevoldsen, EFRAG TEG, Chairman.
Teresa Graham OBE, SME advisor.
Tom Jones, IASB Board
Bob Herz, FASB Chairman.
Peter Holgate, Senior Technical Partner, PwC.
Paul Lee, Director, Hermes Pensions.
Ken Lever, formerly CFO, Tomkins plc, Chair of the 100 Group
Ian Mackintosh, ASB Chairman.
Will Rainey, Global Director IFRS Services, Ernst & Young.
Mary Tokar, Head of International Financial Reporting Group, KPMG.
Sylvie Voghel, Chair of the International Federation of Accountants (IFAC) Small and Medium Practices Committee and a member of the IFAC Board.
Ken Wild, National Director of Accounting and Audit and Global Leader, International Accounting Standards, Deloitte.

17 December - Confidence to corporate reporting at risk, says FRC

In light of the continuing credit squeeze and its attendant liquidity challenges, the Financial Reporting Council (FRC) has highlighted the difficulties faced by financial reporting. With many listed companies reaching their year-end, the Council also issued a plea for vigilance on the part of preparers of accounts, members of audit committees and auditors this year.

“Corporate reporting and auditing will be particularly challenging this year,” said FRC chairman Paul Boyle, “and needs to be matched by increased diligence and then clarity as to the basis on which judgements have been exercised.”

Existing accounting standards remained fit-for-purpose, said the FRC, but their principles-based nature mean many businesses may find their precise circumstances are not expressly provided for. To this end, while drawing attention to the Turnbull and Smith Guidance in the Combined Code, the Council has drawn up additional questions for audit committees. They can be read here.

Previous financial reporting briefs:

November 2007
October 2007
Septmeber 2007
August 2007
July 2007