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NEWS ROUND-UP |
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On 20 June 2007, the Financial Reporting Council (FRC) published guidance on the first time implementation of IFRSs by UK AIM companies. Under AIM Rules, all AIM parent companies incorporated in the UK are required to present their consolidated annual accounts for financial periods commencing on or after 1 January 2007 in accordance with IFRSs. AIM companies must also prepare half-yearly reports which must be prepared and presented in a form consistent with the annual accounts. The FRC has drawn on the experience of UK listed parent companies, which were required to adopt IFRSs with effect from 1 January 2005. The Guidance suggests reading the Financial Reporting Review Panel’s reports on the first IFRSs accounts prepared by UK listed parent companies, which provide details on areas of non-compliance. There are two reports: one published in February 2006 on interim accounts and the other published in December 2006 on annual accounts. They can be obtained from the Publications-Activity Reports section of the FRRP’s website (www.frc.org.uk/frrp/publications). The Guidance also suggests involving auditors in the process, including with the half-yearly reports. Guidance for auditors on issues that may arise when companies undertake the transition to IFRSs is given in Bulletin 2005/3 issued by the Auditing Practices Board. This is available from the Publications-Bulletins section of the APB’s website (www.frc.org.uk/apb/publications). |
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Guidance on IFRSs for UK AIM companies See CLM: ¶4212 |
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On 1 June 2007, the Financial Reporting Review Panel (FRRP) published a proposal for registered audit firms to disclose voluntarily any qualified audit report which they issue in respect of any company within the FRRP’s remit. Voluntary disclosure would be restricted to confirmation that a qualified audit report had been signed in respect of a particular company, together with a copy of the published accounts. The FRRP would not expect any additional information. Consultation on the proposal closes on 31 July. A copy can be downloaded from www.frc.org.uk/frrp. The FRRP is part of the Financial Reporting Council (FRC), the UK’s independent regulator for corporate reporting and governance. The FRRP is authorised to enquire into accounts where there is a question whether they comply with accounting requirements. It has the power to apply to court for an order seeking their revision, but to date the FRRP has always managed to agree appropriate corrections with the companies concerned without recourse to the courts. The FRRP’s remit extends to: » public limited companies; » companies within a group headed by a public limited company; » large private companies (i.e. not qualifying as small or medium-sized); » private companies within a large group; and » any issuer of listed securties which is incorporated or otherwise formed in the UK. |
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Voluntary disclosure of qualified audit reports See CLM: ¶4329 |
