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The Companies Act requirements in respect of disclosure of
auditor remuneration are set to change for all UK companies
(whether UK GAAP or IFRS preparers) for periods beginning on or
after 1 October 2011. The changes relate primarily to the
presentation and classification of the different categories of fees
paid to auditors for non-audit services.
In order to assist companies in determining which services fall
into which of the new disclosure categories the ICAEW has issued
guidance in a technical release TECH 04/11 FRF "Disclosure of
Auditor Remuneration". This guidance in available on their
website (www.icaew.co.uk).
The new disclosure requirements can be adopted early.
Responding to increased country and currency risk
Prompted by the current economic uncertainties facing a number
of countries around the world, the UK Financial Reporting Council
(FRC) has published an update for directors of companies listed on
the London stock exchange to assist them in responding to increased
country and currency risk in their annual and half-yearly financial
reports. The update aims to draw together a number of the more
significant issues for directors to consider, including the impact
of events on impairment testing, going concern assessments and the
extent of appropriate disclosure.
While the update is aimed at directors of listed companies, its
content will also be relevant to many other UK companies whose
businesses have been affected by the ongoing unrest in the Middle
East and recent events in the eurozone and who are required to
report risks and uncertainties in accordance with the Companies
Act.
For listed companies with a December year end, the annual report
for the year ended 31 December 2011 will be the first annual report
in which the company reports on its compliance with the UK
corporate Governance Code (Governance Code) as opposed to the
Combined Code. The Governance Code replaced the Combined Code for
periods beginning on or after 29 June 2010 and applies to all fully
listed companies with a premium (formerly primary) listing of
equity shares in the UK.
While the Governance Code is very similar to the Combined Code
there are a number of new provisions and disclosures which will
require consideration when companies are drafting their corporate
governance statement for inclusion in their annual report.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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It is true that accountants are well ahead of most other professions when it comes to risk management and certainly, the "big four" have had in place risk management processes and dedicated resources far earlier than solicitors.
On 6 September 2012 the Government published its response to the Department for Business Innovation and Skills’ consultation paper "Audit exemptions and change of accounting framework" which detailed the Government’s decision to reform the rules on accounts and audit for companies and LLPs.
From 1 October 2012, subsidiary companies will no longer need to have their annual accounts audited provided that, among other things, their parent company agrees to guarantee all liabilities of the subsidiary that are outstanding at the end of that financial year.
The International Auditing and Assurance Standards Board (IAASB) issued in June an Invitation to Comment on proposed changes to the standard auditors’ report.
Sarah Williams highlights the VAT and Gift Aid implications for the treatment of funds raised by volunteer runners and the imposition by charities of minimum fund-raising targets.
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