UK: Financial Reporting - IFRS & UK GAAP- March 2006

Last Updated: 6 April 2006

Article by Yvonne Lang, Giles Murphy, Stephen Drew, Nigel Bolt, Chris Appleton and Ian Cooper

IFRS

2005 was a year of significant change for the financial reporting frameworks affecting all companies. Fully listed companies are now required to use International Financial Reporting Standards (IFRS) in place of UK GAAP, while UK standards have also undergone considerable change. However, this is far from the end of the story. In the first Financial Reporting newsletter of 2006, we look at further proposed changes to IFRS, as well as the UK Accounting Standards Board’s continuing deliberations on the timing of the switch from UK accounting standards to IFRS.

Business combinations – rewriting the concepts

When IFRS 3 ‘Business combinations’ was first issued in March 2004, it was on the basis that it was only the initial guidance in this important area. Finance directors of companies adopting IFRS were just about getting to grips with its requirements when the International Accounting Standards Board (IASB) issued an exposure draft setting out significant proposed revisions. The exposure draft ‘Proposed amendments to IFRS 3 Business combinations’, reflects the end of phase II and the culmination of a joint project between the IASB and the US Financial Accounting Standards Board (FASB).

The exposure draft, which was issued by both the IASB and FASB, has provoked considerable controversy, with some of the proposed changes affecting all business combinations whilst others are set to change significantly the accounting in circumstances where control is obtained over less than 100% of an entity.

Currently, costs associated with making an acquisition, such as professional fees, are considered to be part of the cost of that acquisition and are included within the cost of investment. The costs are therefore taken into account when calculating goodwill. The IASB argues however that such costs are not part of the consideration and should not be included as part of the cost of acquisition. Instead, they would need to be expensed to the income statement as incurred.

The IASB is also looking to rewrite some established rules of accounting by suggesting a different model for reporting business combinations, the impact of which will be significant where control of less than 100% is acquired. Current accounting, both in the UK and under international standards, reflects the cost of the acquisition and, to the extent that exceeds the identifiable assets and liabilities acquired, the goodwill that arises is included as an asset in the accounts. However, the proposed new approach requires the total fair value of the acquired business to be measured and reflected in the accounts, even in circumstances where less than 100% is acquired. As a consequence, 100% of the calculated goodwill will be included in the accounts, even where control over less than 100% of the acquired entity has been obtained.

Whilst under both the existing and proposed practices the assets and liabilities are consolidated in full, even where there is not full ownership, any outside interest in the acquired business is viewed differently. The term minority interest will be replaced by ‘non-controlling interest’ and because the group will now be viewed as a single entity, any changes in those non-controlling interests will not be reflected in the profit and loss account but as movements within shareholders’ funds. The proposed standard also continues to exclude accounting guidance on business combinations between entities under common ownership. Therefore, the important area of accounting for group reconstructions remains outside of the scope of IFRS 3.

Smith & Williamson commentary

The exposure draft has attracted considerable criticism from commentators including the UK Accounting Standards Board. These criticisms relate not just to the appropriateness of the technical content but also to the consultation processes used by the IASB. It is generally thought that introduction of a new accounting model is more appropriately dealt with in a discussion paper, which would allow for a proper debate of the concepts involved. We are therefore concerned that standards may be introduced whose principles, once applied, may not improve the quality of financial reporting.

In particular, there is a very real risk of the introduction of significant subjectivity (and cost) associated with fair valuing a business where less than 100% has been acquired.

We doubt that this will be the last example of intellectual argument overriding clarity of financial reporting, but there is some hope in that the IASB anticipates that it will take about a year to redeliberate the principles of the standard in light of the nearly 300 comment letters it has received.

Financial instruments disclosure – more change

IFRS 7 ‘Financial instruments: disclosures’ will apply for periods beginning on or after 1 January 2007 and will replace the presentation part of International Accounting Standard 32: ‘Financial instruments: disclosure and presentation’(IAS 32). The standard will also replace IAS 30 ‘Disclosures in the financial statements of banks and other financial institutions’. Earlier application will be permitted.

The IFRS applies to all risks from all financial instruments and to all entities, even where they have few financial instruments (for example, a manufacturer whose only financial instruments are accounts receivable and accounts payable). However, the extent of the disclosure will depend on the extent to which the financial instruments are used and the risks the entity faces.

As with the previous standard, there are two aspects to the disclosure requirements, which are:

  • the significance of financial instruments; and
  • qualitative and quantitative information about exposure to risks arising from financial instruments. The standard includes specified minimum disclosures about credit risk, liquidity risk and market risk.

Whilst many of the requirements remain the same as those in IAS 32, there have been some simplifications, particularly the removal of requirements that result in duplication of information. However, some further disclosure will also be necessary. The most significant changes include:

  • disclosure of the carrying amounts of financial instruments under each of the classifications in IAS 39 ‘Financial instruments: recognition and measurement’
  • the need to provide further information about assets and liabilities designated as at fair value through profit and loss 
  • an analysis of the age of financial assets that are past due and an estimate of the fair value of collaterals held by the reporting entity
  • separate disclosure of the amount of ineffectiveness recognised in profit and loss on cash flow hedges and hedges of net investments in foreign operations
  • additional requirements with respect to sensitivity analysis of market risks and how changes in those risks affect the profit and loss account and equity in the period
  • disclosures with respect to the management of capital.

Smith & Williamson commentary

Whilst some of the changes have removed requirements which could have resulted in the duplication of information, for most companies, the new standard will result in a net increase in disclosure. Companies will therefore need to look to their existing systems and reporting lines to ensure that they are capable of capturing the necessary information.

The fact that companies may adopt the standard early means that those companies required to apply IAS 32 but which have yet to draft their disclosure notes, might want to consider moving straight to IFRS 7 to avoid having to apply two separate standards in a period of two years.

Financial Reporting – UK GAAP

Business combinations

The Accounting Standards Board (ASB) has issued an exposure draft of the full text of the revised IFRS 3 for comment. As well as the proposed changes discussed above, the existing provisions of IFRS 3 would result in, amongst other things, the abolition of merger accounting, goodwill being subject to annual impairment review rather than amortisation, and the immediate recognition in income of negative goodwill. FRED 36 ‘Business combinations’ was issued as part of the general policy of alignment of UK GAAP with IFRS.

However, the ASB’s invitation to comment has raised a number of significant issues as to the effect of the proposed changes. Convergence – will it be a big bang?

In March 2004, the ASB issued its plans for converging UK standards with IFRS. The phased approach set out in its discussion paper, intended to limit the burden of change in any one year, would see:

  • a number of new standards in 2005 and 2006 to enhance current UK standards
  • a series of ‘step changes’ from 2007, replacing UK standards as their international equivalents were completed.

By the end of 2005, we were already a significant way through the process, with ten new IFRS-based standards in issue and exposure drafts of three further standards issued for comments, including the revised IFRS 3 discussed earlier in this newsletter.

However, as listed companies have begun to experience the reality of applying IFRS, many UK businesses have become increasingly vocal about the benefits of convergence to a new set of accounting standards, which are often seen as overly complex, even for publicly listed companies, and could therefore be even more so for private and smaller companies.

In addition, uncertainty as to the content of international standards as a consequence of the IASB’s convergence project with FASB and the delay in completing the project on the application of IFRS to smaller companies has caused support for a phased approach to convergence to wane.

This was highlighted in recent comments made by Eric Anstee, chief executive of the Institute of Chartered Accountants in England and Wales:

"If the ASB was to proceed with the current IFRS convergence programme, private companies could face the grim prospect of switching from UK GAAP to full IFRS to simplified IFRS in short succession".

Revising the strategy

In December last year the ASB responded to these growing concerns by issuing for discussion proposals for a revised convergence strategy. The suggested ‘big bang’ approach would mean that all UK standards not yet consistent with IFRS would be replaced by IFRS-based standards, all applicable from the same date. The ASB is proposing that this date be periods beginning on or after 1 January 2009.

To ensure that there is a stable platform of standards for UK companies to apply in 2009, the ASB is further proposing that the new standards be based on IFRS, applicable as at 1 January 2006.

The position for smaller companies

Not all entities will be required to comply with the full requirements of the IFRSbased standards. In writing its proposed convergence strategy, the ASB has assumed that, when issued, the IASB’s Standards for Small and Medium-Sized Enterprises (SMEs) will be applicable for entities similar to those which can currently apply the Financial Reporting Standard for Smaller Entities (FRSSE) (i.e. those currently meeting the Companies Act definition of a small entity). However, if the IASB’s Standards for SMEs appear more suitable for entities larger than small companies the ASB will consider developing its own replacement for the FRSSE, based on IFRS.

Also under consideration is the possibility of a three-tier approach, with the largest, publicly accountable entities applying full IFRS and the smallest applying the IASB’s Standards for SMEs or the ASB’s own version. Entities that fall in between these two categories would be permitted some modifications from the full standard (for example, reduced disclosure requirements) on the grounds of cost benefit.

Smith and Williamson commentary

Anyone reading the invitation to comment sections of recent exposure drafts issued by the ASB will be aware of its increasing concerns about the appropriateness of some of the changes to the IASB’s proposed standards. It is also clear that the ASB has taken notice of the public response to those comments in reconsidering the approach to convergence.

With IFRS containing no exemptions for smaller companies or those within groups, the issue of the applicability of IFRS to different sizes of entity will be key to any final decision.

The consultation paper was issued as a prelude to a roundtable meeting held in late January. At the meeting, many of those present expressed concerns about the appropriateness of IFRS for use in the UK, even in the longer term, given the way those standards appear to be developing. We expect that we will be returning to this subject in future newsletters.

Farewell to the OFR – but hello to the enhanced directors’ report

Gordon Brown’s speech in November last year announcing the removal of the requirement for listed companies to provide a mandatory Operating and Financial Review (OFR) came as a surprise to most of the accounting community.

However, before company directors start celebrating, they should bear in mind that the idea of a mandatory OFR was a UK extension of wider requirements introduced into legislation as a consequence of the EU Accounts Modernisation Directive (the Directive). Company law, consistent with the general requirements of the Directive, was introduced by Statutory Instrument 2005/1011 ‘The Companies Act 1985 (Operating and financial review and directors’ report etc) Regulations 2005’. The changes to the Companies Act remain in place and have implications for all except the smallest of companies, whether they are listed or not.

Although the need to provide a fair review of the business has long been required in the directors’ report, the content of that review had never been specified, often resulting in bland, boiler-plate statements considered to be of little value to the users of the accounts. The new legislation expands upon these existing requirements for large and medium-sized (but not small) companies.

With effect from periods beginning on or after 1 April 2006, the directors’ ‘Business Review’ will need to include:

  • a balanced and comprehensive analysis of the development and performance of the business of the company during the financial year and the position of the company at the end of that year
  • a description of the principal risks and uncertainties facing the company
  • further analysis using both financial and non-financial key performance indicators (KPIs).

Companies and groups that qualify as medium sized under the Companies Act criteria are exempt from providing information on non-financial KPIs. This means that companies with a turnover of below £22.8m and total assets below £11.4m will only have to provide information on financial KPIs, as long as they are not an ‘ineligible company’ as defined by the Companies Act, for example, a public company or a company that is regulated under the Financial Services and Markets Act.

What does this mean for listed companies?

The Department for Trade and Industry has recently announced that listed companies will need only to publish the ‘Business Review’ as required by the Directive. Although this review will include much of the information that the OFR would have covered, it is in less prescriptive form and omits some of the more forwardlooking information, such as the main trends and factors likely to affect the company’s future.

The ASB’s Reporting Standard 1 ‘The Operating and Financial Review’ (RS1), which all mandatory OFR preparers would have had to comply with, will remain in issue but has been redesignated from a mandatory standard to best practice. As a consequence, companies that choose to produce an OFR will not have to comply with the standard.

Smith and Williamson commentary Whilst the removal of the mandatory OFR has been seen by many as a political response to ‘gold plating’ of EU legislation, it is clear that the inclusion of increased narrative information in the annual report is here to stay. Many listed companies already produce comprehensive information similar to that envisaged in the mandatory OFR and this trend is likely to continue. In the future, there is also likely to be influence from international accounting and the IASB has recently issued an exposure draft in this area – ‘Management Commentary’, a project in which the ASB has been heavily involved.

These changes to the Companies Act are likely to prove more challenging for those businesses that have historically spent little time on this area and will now find themselves having to provide far more information about how their business is run.

Company law – change at last November 2005 finally saw the Company Law Reform Bill introduced into Parliament. The changes in legislation reflect one of the Government’s key aims – making life simpler for privately owned companies. The draft bill identifies the requirements for small companies first and then addresses the additional requirements for larger companies. Whilst the draft bill runs to some 500 pages, it was accompanied by a much shorter and easier ‘Guidance to key clauses’, which provides a useful steer through the legislation. Both the bill and guide are available on the UK Parliament website (www.publications. parliament.uk/pa/pabills.htm). Some of the main areas of change are considered below.

Simplification of share capital rules In keeping with the aims of making it easier to form and run a company, a number of changes are being made to the existing rules on share capital.

  • The concept of authorised share capital is to be removed.
  • The current rules, which prohibit the giving of financial assistance for the purchase of own shares in a private company, will be revoked. The rules will however continue to operate for public companies.
  • Private companies will be able to reduce their share capital without court application, although they will be required to make a statutory statement as to their solvency.

Corporate administration

A number of the ongoing administrative requirements placed upon companies will also be amended. This will include the removal of the need to have a company secretary for private companies and the statutory requirement to hold an Annual General Meeting.

However, the period allowed for delivery of accounts to the Registrar of Companies will be shortened to nine months for private companies and six months for public companies.

Directors’ duties and responsibilities

The revised Act will also put the responsibilities of directors, many of which are currently established through case law, onto a statutory footing. As a consequence, the draft Act contains provisions that directors will be required to act in good faith and in such a way that:

  • is likely to promote the success of the company for the benefit of its members
  • considers the long-term consequences of any decisions they take
  • exercises reasonable skills and care and avoids conflicts of interest.

Specific rules for quoted companies

The legislation will also introduce further provisions for quoted companies, which will include requiring them to publish both their preliminary announcements and annual accounts on their website.

Members of a quoted company will also be given increased rights to request information about the conduct of an audit and, subject to certain shareholding limits, to have those questions published on the company’s website.

Limitation of auditor liability

The ability of auditors to limit their liability has been widely publicised. The limitation will require shareholder agreement, but the exact way in which the provisions will operate has still to be determined.

Smith & Williamson commentary

The long gestation period for these changes means that most of them will not come as a surprise. It is pleasing to see that the promised simplification for smaller companies is reflected in the draft Act, the language of which is also much clearer. There are, however, a number of areas where the legislation gives power to the Secretary of State to write the necessary rules. Accordingly, there are a number of detailed provisions which have still to be produced.

A new auditing environment

Whilst this newsletter’s primary focus is to update you on changes to financial reporting, many of our readers are also subject to audit. Auditing standards have undergone significant change in the past 12 months and whilst most of the changes resulting from the introduction of International Standards on Auditing (UK and Ireland) (ISA) affect the procedures undertaken by auditors, they will also affect every entity that is subject to an external audit.

All audits of financial periods beginning on or after 15 December 2004 will need to be conducted in accordance with the new standards. Therefore, irrespective of your year-end, your next audit will be carried out in accordance with ISA.

The respective responsibilities of auditors and directors remain unaltered. The main changes arising from these new auditing standards relate to the auditors’ consideration and documentation of risk and fraud. The style of the standards has also changed, with increased emphasis on mandatory procedures. The three main effects that you will notice are:

1. You may be asked some questions which you have not been asked in the past.

2. You may be asked to make certain representations that you have not had to make in the past, particularly with reference to fraud.

3. There is an increased volume of prescribed audit procedures, some of which may not have been performed on your audit in the past.

ISA place considerable emphasis on the area of fraud risk. Therefore, your auditors will be required to discuss fraud as it affects the financial statements with you. This discussion will usually include matters such as where you think there is a risk of fraud that could result in a material error in the accounts and what you can do to avoid that risk. You will also be asked to provide the auditors with details of any fraud or alleged fraud in the period.

Whilst your auditors will have talked to you about business risk and internal control in the past, the level of information which they now need to gather has increased considerably. You are now far more likely to be asked questions such as:

  • what are the goals and strategies of your organisation and how do you measure your success?
  • how do you communicate the importance of financial controls to your staff?
  • what policies do you have in place to ensure the security of your computer system?

Smith and Williamson commentary

ISA are part of the response to further improve the quality of UK audits and boost the assurance provided by the audit report to users of the accounts. Some of these new requirements may also help you to rethink your own risk assessment procedures and how they contribute to your business.

However, the new standards do result in an increase in audit procedures and documentation and, whilst the exact effect will vary from entity to entity, this will be a challenging time for everyone involved in the audit process. 

We have taken great care to ensure the accuracy of this publication. However, the publication is written in general terms and you are strongly recommended to seek specific advice before taking any action based on the information it contains. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.

© Smith & Williamson Limited 2006.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions