IFRS Archives - Emile Woolf writes

The Auditing endgame is nigh

“ACCOUNTANCY” August 2018 Beginning of the end for the status quo of accounting – and auditing! “That which is crooked cannot be made straight” (Ecclesiastes 1,15). I am not suggesting that accounting is inherently crooked, but it is currently plagued by a “disconnect” between compliance and truth – hardly reflected in the Institute’s motto: “recte […]

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“Grasping the nettle: now or never for auditors!”

JUNE 2018 – “ACCOUNTANCY” GRASPING THE NETTLE – IT’S NOW OR NEVER FOR AUDITORS It has descended into predictable farce. Every time a corporate reporting clanger is dropped and auditors of a public company are mired in yet another scandal, the Financial Reporting Council responds by undertaking to investigate the accounts and audit of the […]

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“Excessive regulation is the enemy of transparency”

December 2016 “ACCOUNTANCY” Excessive regulation is the enemy of transparency Government departments, lacking the relevant expertise themselves, often grant extensive powers to professional bodies responsible for overseeing the activities of their members. The chief problem with this growth of administrative (compared with constitutional) law is accountability. Given such powers, professional bodies hardly expect to be […]

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Standards can obscure the simplest concepts: try ‘true and fair’

UK Companies Acts since 1947 have stipulated that audited accounts of companies should give a ‘true and fair view’. After 66 years the meaning of that elusive formula continues to be hotly debated by accounting bodies, regulators, representatives of investors and pension funds, civil servants and politicians. Prior to that time the Acts used the […]

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Enhancing banks’ accounting regulation: and about time!

Regulation of the UK financial services industry is now entrusted to a new body with a new name and a new boss. Andrew Bailey, whose signature appears on your banknotes, takes over this month as chief executive of the Prudential Regulation Authority, successor to the FSA. Initial impressions augur well. In his first post-appointment interview […]

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Clear? Coherent? Transparent? Intelligible? How would you describe our reporting standards?

UK accounting standards are celebrating their 40th birthday: Statement of Standard Accounting Practice No.1 on associated companies was issued in 1971. The initiative was given a boost in 1973 following exposure of Robert Maxwell’s deceits at Pergamon Press. In a hotly contested takeover battle Pergamon’s share price was supported by accounts that included a wildly […]

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Tax and accounting are the drivers: but where are they taking us?

Purists maintain that accounting and taxation should be neutral in terms of economic impact. Decision-making should be based on what’s good for the business – for its customers, staff and shareholders – without distortion by complex tax and accounting rules. But we have strayed: there is scarcely a decision untainted by daunting tax or accounting […]

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Communication rather than jargon: what accounting needs

Like the Holy Grail, convergence of financial reporting standards is an ever-receding goal. We may get there one day. But will a unified framework, even with enhanced consistency and comparability, provide investors worldwide with more intelligible accounts? While the harmonization process treads through interminable conceptual minefields, that key question is easily overlooked. Meanwhile, the range […]

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