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Sorry Steve but you have to laugh, triennial review? Some of us haven't even used it yet.
How many decades can the accounting industry keep this stuff churning on, until somebody susses that they are only doing it to keep the mystery and fees running?
In other words, how many more decades till they get it right?
Sorry Steve but you have to laugh, triennial review? Some of us haven't even used it yet.
How many decades can the accounting industry keep this stuff churning on, until somebody susses that they are only doing it to keep the mystery and fees running?
In other words, how many more decades till they get it right?
Why do you think that industries, and the world in general should change dramatically, but accounting should carry on unchanged?
The issue is who all this change benefits. I'm sure many outside our accounting industry feel it's much like the legal system where any change is purely to benefit the accountants/lawyers to keep them in well paid jobs.
Look at any set of accounts on Companies House and you'll know that all figures have to be taken with a large pinch of salt because most of them are "tarted up" to reflect the company/group's own agenda and that any change in accounting standards has little or no effect on Joe Public except to bump up their costs...
I had a discussion with my institute about all of this change we are going through. Apparently MTD will have no bearing on changes to FRS 102 because The accounting standards board don't get involved with tax and vica versa. I also tried to explain to our institute that clients don't understand the accounts anyway so all of this change is probably unnecessary . That was met with a very harsh response by the person on the other end of the phone who basically said that it is our job to make sure clients understand their accounts and any non compliance with accounting standards would result in a negligence claim that wouldn't be covered by PI insurance! Quite scary really. Roll on retirement.
Ah but MTD is not just about tax. HMRC are moving the goal posts and taking basis (year ends) periods away in order to get money in real time. I have no doubt that once the unincorporated are on RTI then it's only a matter of time before HMRC look at how they can do the same with Limited Companies (especially the one man bands). Nothing will be sacred anymore.
Change for the better is often a good thing.
Change for the sake of change is akin to putting lipstick on a pig.
We have too many useless people on a job-creation exercise these days.
I am a small practice with 40 unincorporated clients who are mostly over 50 years old. The clients heavily depend on my input every year and concentrate on their businesses.
I cannot do quarterly for them due to the fact that my input time will multiply by 4 times. I also have to do vat returns every quarter within 30 days. Monthly RTI returns every pay period. Now digital reporting every three months within the 30 days of every quarter.
What is the plot of the OTS? Are they aware of the practicality? Have they ever run a business ?
I am totally convinced that this is to get rid of the accountants like ourselves and tax the public in an unruly manner with fines and surcharges.
Mark my word. There will be less self-employed and more unemployed when years to come with these senseless MTD regislation. Another fine mess.
I am a small practice with 40 unincorporated clients who are mostly over 50 years old. The clients heavily depend on my input every year and concentrate on their businesses. Most of them are self-employed due to poor education at young age or due to illnesses. They have not operated computers. Very inexpensive mobile phones are being used for their emergencies. It will never be within their ability of accounting input on daily basis or quarterly basis. They do not believe in online banking after a hard days of work at their work places.
I cannot do quarterly for them due to the fact that my input time will multiply by 4 times. I also have to do vat returns every quarter within 30 days. Monthly RTI returns every pay period. Now digital reporting every three months within the 30 days of every quarter.
What is the plot of the OTS? Are they aware of the practicality? Have they ever run a business ?
I am totally convinced that this is to get rid of the accountants like ourselves and tax the public in an unruly manner with fines and surcharges.
Mark my word. There will be less self-employed and more unemployed when years to come with these senseless MTD regislation. Another fine mess.
With all these changes to reporting standards, I am moving my stance away from "what is correct?" to "what wont get rejected by Companies House?" given the main users of the accounts - the clients and HMRC couldn't give a rats [***], the former just what the minimum possible disclosed in public. Given the accounts I see other accountants file, I don't seem to be in much of a minority. Its becoming a fools errand to seek to get it right.
This could run and run
'The FRC has acknowledged in the consultation that any changes to FRS 102, including those for consistency with IFRS, are to be developed in a proportionate and practical way keeping in mind the types of entities that are under the scope of FRS 102. The FRC will make changes when the changes for consistency with IFRS are considered to improve financial reporting'.
My gosh this could run and run, but I think it will be done and dusted by 2020, its not as far away as you think.