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Professional ethics
Anne Davis
Integrity and Ethics Manager
ICAEW Code of Ethics key points
IFAC +
Mandatory
www.icaew.com/ethics
Objectivity
Considerthreats
Applysafeguards
Principles based approach
InformationTechnology
Audit andAssurance
Tax
Integrity
or dont
do it
Confidentiality
Professionalbehaviour
ProfessionalCompetence& due care
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Integrity
straightforward and honest in all professional and business
relationships
should not be associated with false or misleading information
Objectivity
not allow bias, conflict of interest or under influence to
override judgements
relationships which bias or unduly influence professional
judgement should be avoided
Professional competence and due care
continuing duty to maintain professional knowledge and
skill at the level required to ensure competent professionalservices... to client or employer
should act diligently and in accordance with applicabletechnical and professional standards.
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Confidentiality
respect the confidentiality of information acquired
. confidential information should not be used for the personaladvantage
Professional Behaviour
comply with relevant laws and regulations
and should avoid any action that discredits the profession
Threats
Self-interest: may occur as a result of your financial or other
interests or that of an immediate or close family member
Self-review: may occur when a previous judgement needs to be re-evaluated by you and you were responsible for that judgement
Advocacy: may occur when you promote a position or opinion tothe point that subsequent objectivity may be compromised
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Threats (continued)
Famil iarity: may occur when, because of a close relationship, you
become too sympathetic to the interests of others
Int imidation: may occur when your objectivity is threatened bythreats, actual or perceived
Safeguards
Profession, legislation or regulation
Firm wide
Engagement-specific
Client
Framework for Ethical Decision-Making
Do I have all the facts relevant to this situation?
Who should be involved in the discussions?
What are the ethical issues involved?
What are the alternative courses of action and theirassociated consequences?
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Test your decision
Is the proposed solution workable?
Would a reasonable (and informed) third party reach thesame conclusion?
Will the decision compromise my professional and/or personalreputation?
Would the decision, if open to public scrutiny, make me, myfamily, friends or colleagues proud?
Case study: a proposal
You are the only Chartered Accountant working in a small company
specialising in microchips. You have recently been appointed Finance
Director and have a small finance team of 5 staff, some of which are
studying for their accountancy qualification. The company has difficulty
attracting and retaining skilled staff. As a result, the Board has asked
you to draw up a benefits package to assist in overcoming this
problem. You are told that your entitlement to your benefits will be in
accordance with the new scheme.
What should you do?
Options
1. Develop the proposal for the new benefits package
2. Declare your conflict of interest and dont work on theproposal for the new benefits package
3. Develop the proposal, declare your conflict of interest anddont vote on the proposal.
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Case study: auditor independence
You are working for a large international public practice. Your audit
client is a subsidiary of a retail company based in a country with a reputation
for corruption and poor governance. The retail company is one of your
firms larger clients and you know that there is a possibility of a change
of auditors next year. You feel there is insufficient evidence to support
some of the financial information in the accounts and that the audit
opinion needs to be qualified. You understand that additional
information and assurance have been obtained by Head Office, and the
audit has been signed off. You are told that you will not be on the audit
team next year.
What should you do?
Options
1. Carry on as normal and dont raise your concerns anyfurther. After all, you are not ultimately responsible for theaudit opinion.
2. Raise your concerns with your managers superiors.
3. Check your information and register your concerns formally
with your manager.
Changes to ICAEWs Code of Ethics Driven by IFACs Ethics Standards Board (IESBA)
Tentative dates:
Revised Code issued October 2010
Implementation date 1 January 2011
Key changes:
Drafting conventions
Independence requirements
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Drafting conventions
Shall replaces should
Consistency in other terminology:
consider, evaluate, determine
removing the word example
Replacement of clearly insignificant with acceptable level
Temporary departure from the Code
Independence requirements
Structure
Section 290: audit and review engagements
Section 291: other assurance engagements
Key changes:
Extending independence requirements for audits of listedentities to audits of all public interest entities
Partner rotation/cooling off requirements Strengthening some of the requirements relating to the provision
of non-assurance services to audit and public interest entities.
Key changes to independence requirements Extending independence requirements for audits of listed
entities to audits of all public interest entities
Extending partner rotation requirements to
all audits of public interest entities
all key audit partners
Eliminating existing flexibility for firms with few partners toapply alternative safeguards instead of partner rotation toaddress familiarity threat
Requiring mandatory "cooling-off" period before a key auditpartner joins former audit client that is public interest entity, orindividual who is a firm's Senior or Managing Partner (ChiefExecutive or equivalent) joins such an audit client
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Key changes to independence requirements
Prohibiting key audit partners from being evaluated on or
compensated for selling non-assurance services to their auditclients
Blanket prohibitions of providing non-assurance services to auditand public interest clients:
internal audit services
taxation services
valuation services
IT systems services
recruiting services
Requiring a pre- or post-issuance review of the second years auditif total fees from an audit client that is public interest entity exceed15 percent of the total fees of the firm for two consecutive years
APB Ethical Standards
applies to audits conducted in the UK and ROI
consultation on provision of non-audit services
Issued October 2009
Deadline January 2010
Revised Ethical Standard 5 for consultation (probably July 2010)
www.frc.org.uk/apb/publications/ethical.cfm
How does ICAEW promote ethics? Code of ethics
Education and support
Enforcement
Thought Leadership
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www.icaew.com/ethics
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Does it matter any more whether a small ormedium sized business sets up as acompany?
Anita Monteith
1 July 2010
Size of the SME sector
4.8 million private sectorenterprises in the UK at thestart of 2008
Small and medium-sized
enterprises (SMEs) togetheraccounted for 99.9% of allenterprises, 59.4% of privatesector employment and 50.1%of private sector turnover.
1,500 billionturnover
3,000 billionturnover
13.7 millionemployees
23.1 millionemployees
SMEsPrivate sector
total
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SME business creation
500 new businesses created every day
Enhanced online services for SMEs (Budget 2010 Red Book, para4.20)
Delivering a new relationship with business: Reducing burdens andhelping businesses get it right
From Businesslink:
A personalised web service for those starting up in business; better accessto tax guidance for all SMEs;
flexible tax payment plans to help businesses manage their cash flow.
From HMRC:
A single interactive form to enable new businesses and new employers toregister for multiple taxes online and to authorise tax agents
SME business form
Legal structures available
Sole trader
Partnership
Limited company
Limited liability partnership
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Considerations relevant to incorporation decision
Commercial and financial
Raising finance
Customers insist (eg IT industry)
Ownership considerations
Need to limit personal liability
Administrative burden
Personal reasons
Tax reasons
Taxes involved in the decision
Unincorporated businesses
Sole traders, partnerships (and limited liability partnerships)
Income tax; national insurance contributions (NIC)
Companies
Corporation tax
VAT is paid by all VAT registered businesses
The taxes themselves arent the only aspect of tax which isdifferent for different business forms.
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Does the tax tail wag the commercial dog?
Business life cycle
Start up, early years, growth, exit
Encouragement for business transfers
Eg retirement, sale of business, mergers etc
Certain reliefs are only available to companies
Research and development tax credits
Tax relief for investment in a company
Venture capital, Enterprise Investment Scheme Enterprise Management Incentives
Example use of a car for business, but with some private use
What tax is payable by sole traders
All profits of the business are taxed as income of theindividual regardless of how much cash is withdrawn
Income tax rates 20%, 40% and from 2010/11, 50%
Class 2 national insurance contributions (NICs) (currently2.40 per week in 20010/11)
Class 4 NICs at 8% on profits between 5,715 and 43,875per year and at 1% on profits above 43,875
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What tax is payable by a partnership
Partnerships are tax transparent
Individual partners are taxed personally on their shares ofprofits, gains and losses as set out in the partnershipagreement
NICs are similar to those applied to sole traders
The partnership itself is not a separate taxable entity
Also applies to LLPs
Corporation tax rates
Financial year 2011
(1 April 2011 onwards)
Small profits rate to be reduced to20%
Dividend extraction remains attractive, butpara 2.74 of the Red Book,
The Government remains committed to a reviewof IR35 and small business tax and willrelease further details shortly
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Joe LeMini
Joe LeMini has decided to start his own business repairinglawn mowers. He is married and his wife has agreed to workfor the business as well.
He estimates that his profits for the first year of trading, 1 April2009 to 31 March 2010 will be 25,500.
Sole trader, employing his wife for a salary of5,500pa
Income tax at 20% 2,705
National insurance contributions
Class 2 52 weeks x 2.40 124.80
Class 4
8% x (20,000 5,715) 1,142.80
Total tax and NIC 3,972.60
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Joe and his wife are equal partners
Income tax at 20% 1,255
National insurance contributions
Class 2 52 weeks x 2.40 124.80
Class 4
8% x (12,750 5,715) 562.80
Mrs LeMini will pay the same
Total tax and NIC 3,885.20
Joe trades through a company
Joe pays himself and his wife a minimal salary of 5,500each.
The company pays remaining profits after tax to the couple byway of dividends.
Profits 25,500
Less paid to Mr & Mrs LeMini 11,000
Taxable 14,500
Corporation tax at 21% 3,045
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Does it matter any more whether a small or mediumsized business sets up as a company?
If the tax bill is the only concern, then yes it does. It mattersnow more than ever because companies pay much less tax.
Next question for Government
Is it fair that small businesses have this option?
Small business tax review to take place
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Tax Faculty
Anita Monteith
1 July 2010
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Gavin Aspden FCA
Director, Qualifications
Overview of ICAEW qualifications- How we can work together
The ACA multiple entry routes
Graduate route
Dont need maths/accounting at A-level
84% of ACA students have a degree
Majority of these have a non-relevant degree eg,law, civil engineering, modern languages, history
School- leavers (A-levels or international equiv.)
Fast Track programmes (from AAT)
Certificate in Finance, Accounting and Business
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ACA exam structure Credits for prior learning available
The end result
84% of FTSE 100 companies have an ACA ontheir board FAME Company InfoJune 2009/ FTSE UK Quarterly ReviewJune 2009 / ICAEW member data June2009
55 FDs of FTSE 100 companies hold an ACA significantlymore than any other qualification Accountancymagazine April 2009
In the Accountancy Age2009 Top 50 financial power list, of the20 qualified accountants on the list, 15 are ICAEW members(75%)
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ICAEW Other qualifications and developmentprogrammes
Certificate in Finance, Accounting and Business
IFRS Products
IFRS Learning and assessment programme
IFRS for SMEs
Certificate in International Public Sector Financial Reporting (Cert IPSFR)
Diploma in IFRS
Business Sustainability Programme
Certificate in Insolvency
Corporate Finance qualification
Diploma in Charity Accounting (DChA) Forensic Accountant and Expert Witness Accreditation
Pathways to Membership
www.icaew.com/learning
Certificate in Finance, Accounting and Business
No previous academic qualifications are required
Stepping stone to the ACA
Can be completed in less than one year
Computer-based assessment for all modules
Option of self-study, classroom based tuition or e-learningtuition is available.
International appeal
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IFRS products
IFRS learning and assessment programme
Study manual and online learning materials
Online assessment
Around 70 hours of study
Access to the programme lasts for 12 months
Already used by a number of Universities around the worldwithin their undergraduate and post graduate degreeprogrammes
Teaching materials available
IFRS products new this year!
IFRS for SMEs
Online learning materials and assessment
Around 30 hours of study
Certificate in International Public Sector Financial Reporting
In partnership with CIPFA Online learning materials and assessment
Around 70 hours of study
Diploma in IFRS
Currently only available as a post qualification product
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Business Sustainability Programme
E-learning product
Benefits of programme
Make a contribution to the bigger picture
Increase awareness of business challenges
Awareness of how to exploit business opportunities
Convenient, flexible learning
No formal examinations
Access to resources and telephone support
Low cost
Gavin Aspden FCA
Director, Qualifications
Overview of ICAEW qualifications
- How we can work together
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Research and event funding
Gillian Knight
Research Manager
Use of the PD Leake trust funds
to benefit and advance the science of accounting
Annual spend of 200,000
Research projects - 30,000
Events - 2,000
Academic advisers, ICAEW staff, board and trustees
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Event funding
Non-commercial
In the public interest
Brings together academics and practitioners
Encourage debate and research in our areas of interest
Encourage young scholars
Opportunities for ICAEW staff to be involved
Examples of events funded in 2010
BAA doctoral colloquium (Cardiff, March)
Management Accounting Research Group conference (London,
April)
Manufacturing Accounting Research conference (Ghent, June)
Managerial Compensation conference (Cardiff, September)
Workshop on European Financial Reporting (Stirling, September)
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Research project funding
Topic thought leadership initiatives
11 key topics + Learning and Professional Development
Researcher or team
Process
Pre-proposal as a basis for a two-way discussion
Examples of research projects
A study of UK bank risk disclosures pre and post-credit crisis (York)
Corporate social accountability of professional firms offeringaccounting-related services (West of Scotland)
Fair value accounting: an institutional analysis (LSE)
Real integrity: practical techniques for promoting it in business(Leeds)
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Thank you
For more information contactGillian Knight
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Jessica Whytehorn
Academic education manager
Partner in Learning
Agenda items
Overview of Partner in Learning Scheme
CFAB & BSP
Credit for Prior Learning (CPL)
Graduate Recruitment
Overview - Partner in Learning scheme
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Higher Education Institutions (HEIs)
Engagement with ICAEW
Engagement with graduaterecruitment events
Use of ICAEW resources &learning materials
ACA/CFAB modulesincorporated into programme/s
ACA Worldwide ACA training
ACA TRAINING:UKChinaCyprus
GreeceThe GulfMalaysiaPakistanRomaniaRussiaSingapore
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Resources - qualifications
ACA
two stages: the professionalstage and the advanced stage
CFAB
Made up of six modules: business& finance, managementinformation, accounting, law,assurance and principle oftaxation
Corporate finance
Two part programme: diplomaand advanced stage
BSP made up of five modules
Icaew.com/partnerinlearning
ProfessionalStage
AdvancedStage
6 knowledge modules each assessment 1.5 hours long
6 application modules each assessment 2.5 hours long
Case study 4 hour assessment
2 Advanced Stage Modules eachassessment 3.5 hours long
Modular exam structure
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ACA qualification
Example of resource available for business & finance
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Business Sustainability Programme (BSP)
Business Sustainability Programme (BSP)
What are Business Sustainability
and Corporate Responsibility?
What is the business case forCorporate Responsibility?
Corporate Responsibility in action
How do businesses embedCorporate Responsibility?
What will you do? (A personal andcorporate action plan)
Benefits of BSP
Flexibility to undertake the programmeat any time
An easy and effective method ofbuilding knowledge on corporateresponsibility and businesssustainability
Self assessment throughout theprogramme consolidates the usersunderstanding and competence insubject areas
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The BSP was extremely effective in
increasing awareness of corporate
responsibility and sustainability. It was
informative, enjoyable and took
approximately two hours to complete.
Laura Lewis, Portsmouth University student
Learning materials
Workbooks and past cases for threeprevious exams
Workbook covering case study approach
Financial analysis workbook
Advanced Stage
Case Study - 70
Four study manuals covering each coretechnical area
Two revision question banks
Practice question bank
Mock exams two per sitting (tutors)
Electronic course exam questionbanks (tutors)
Advanced Stage
Technical integration level - 140
Study manual
Question bank
Mock exams two per sitting (tutors)
Electronic question bank (tutors only)
Professional Stage
Knowledge level - 25
Application level - 40
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Partnership degrees
ACA/degree programme
ACA placement year programme
Completing 80% ACA exams as part of degree
Incorporating CFAB as diploma
Certificate in Finance Accounting and Business (CFAB)
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Certificate in Finance,Accounting andBusiness (CFAB)
CFAB - features
Free e-membership ofFaculties for a year
Can be completed in a year
Flexible study pattern andrange of study options
Credit for prior learningavailable
No formal academic entry
requirements
CFAB
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Businessand Finance
ManagementInformation
Accounting(mandatory)
Law Assurance Principles ofTaxation
How and what will students learn?
Principles ofTaxation
Credit for Prior Learning apply
Businessand Finance
ManagementInformation
Accounting(mandatory)
Law Assurance Principles ofTaxationAccounting
(mandatory)
CFAB - options for you Degree entry route
Postgraduate diploma
Split or block days, evening or mid week courses
Weekend courses
Summer school
Credit for prior learning
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Cost of CFAB
Fees
Registration fee 165
6 modules exams@ 60 360
6 study manuals @ 25 150
Total 675
Newcastle University Business School is
delighted to be working with the ICAEW in
relation to the CFAB qualification, which
will form an integral part of our new
Graduate Diploma programme. We believe
the content and relevance of the CFAB
programme forms an excellent introduction
into the areas of Finance, Accounting and
Business
Credit for Prior Learning
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Credit for Prior Learning what it means
Students who have undertaken previous learning may have already
studied modules covered in the ACA or CFAB
We recognise prior learning and do not require students to sit thesepapers but a decision about whether to take a credit can often restwith the employer.
For students with a degree it is possible to claim up to 8 credits; forstudents with another professional qualification it is possible to claimup to 12 credits.
CPL- applications process
A self certification process is applied to all
HEIs and Professional Bodies must take responsibility for reviewingtheir syllabus and matching learning outcomes with that of our ownACA/CFAB syllabus
Update us immediately of any syllabus change that may impact ontheir credit and make an annual declaration to confirm that theircourses remain fit for purpose
CPL- applications handling JessicaLearning Team: Responsible for initial enquiries from HEIs
KirstenLearning Team: Responsible for CPL policy
CPL updated alongside syllabus
Guidance & support for professional bodies and H igher EducationInstitutions (HEIs)
CPL for Memorandums of Understanding with other professional bodies
CPL audit & review process
FionaApplications Team: Responsible for CPL applications
Processing CPL applications for, individuals, HEIs & professional bodies
Updating credits on to Pro database and online directory
Handling students queries email and phone
Processing annual update CPL declaration
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Graduate Recruitment
Services relevant to you
Training vacancies
Presentations
Business case studies
Women in Accountancy
Training Vacancies Is a comprehensive listing of UK and international
organisations offering ACA training opportunities
Excellent research tool when seeking to match careerambition
Available in hard copy format or online
icaew.com/careers
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Presentations
Panel presentations
Lecture talks
Presentation evenings
Would like to meet sessions
Would like to meet sessionKingston University
Plymouth University
Exeter University
Cardiff University
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Business case studies
Overview of what activities chartered accountants are
engaged in
Utilising employability skills
Based on past papers from the ACA case study
Women in Accountancy 22 Nov 2010
CV & Interviewworkshop (Deloitte)
Personal branding(Lesley Everett)
Assertiveness session(Sue Smith)
Supported by TM Lewin
Additional support materials
Partner Fliers (25)
Work Experience toolkit
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Thank you for your timeicaew.com/partnerinlearning
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A world leader of the
accountancy and finance profession
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Technical Update
Financial Reporting
Marianne Mau ACA
Financial Reporting Faculty - July 2010
Overview
The financial reporting landscape
Recent developments in company law, UK GAAP and IFRS
What does the future hold
The Financial Reporting Faculty
FINANCIAL REPORTING
LANDSCAPE
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Financial Reporting in the UK pre 2005
European Directives
Companies Act 1985
Financial Reporting Standards (FRSs)
UITF Abstracts
Financial Reporting Standard for Smaller Entities (FRSSE)
Statements of Recommended Practice
Listing rules
Globalisation in Financial Reporting
Demand for international accounting standards
2001 the new IASB
Goal
To provide the worlds integrating capital markets with a
common language for financial reporting
2002 EU Regulation that all EU listed companies prepareconsolidated financial statements under IFRS as adopted by
the EU from 2005
Financial Reporting in the UK today
IFRS
Mandatory for all listed andAIM companies in theirconsolidated financialstatements
Optional for most others
Government sector moving toIFRS 2009 - 2010
UK GAAP
Remains an option for all legalentity financial statements
FRSSE still available for mostsmall entities
SORPs for specialised sectors
CA 2006 Accounting changes mainly effective 6 April 2008
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Blue areas indicate countries that require or permit IFRSs.
Grey areas are countries seeking convergence or pursuing adoption of IFRSs.
IASB and the FASB committed toconvergence in 2002
Memorandum of Understanding firstpublished by in 2006
Update in 2008
Reports the progress they have made since2006
Sets the goal of completing their major jointprojects by 2011
Short-term projects also ongoing
The boards have affirmed their commitmentto developing a common set of high qualitystandards
30 June 2011 deadline missed delayfor 6 months expected
US GAAP the roadmap
Convergence
COMPANIES ACT 2006
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Companies Act 2006
Business review
Effective 1 October 2007
Key points:
Directors report must contain a business review
Linked to directors duty to promote success of the company
Review must contain:
A fair review of the companies business
Description of principal risks and uncertainties
Analysis using KPIs
Small companies are exempt
Companies Act 2006
Part 15 Accounts and Reports
Mostly effective 1 April 2008
Key points:
Think small first
Accounts schedules replaced by regulations: similar form and content
Medium-sized groups to prepare group accounts
Disclosure of off balance sheet arrangements
New limits for small and medium-sized companies
Small and Medium-sized Companies
25012.9 (net)
15.5 (gross)
25.9 (net)
31.1 (gross)
Medium groups
25012.925.9Medium
503.26 (net)
3.9 (gross)
6.5 (net)
7.8 (gross)
Small groups
503.266.5Small
EmployeesBalance sheet assetsm
Turnover mSize
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UK GAAP
Overview UK GAAP today
Existing converged standardsamended in line with changes toIFRS
Some new/revised standards Further convergence put on hold
Mix of old andconvergedstandards
2005
?Mix of old andconvergedstandards
2010
Some UK GAAP changes FRS 29 (IFRS 7) Financial Instruments: Disclosures
FRS 8 (revised) Related Party Disclosures
FRS 30 Heritage Assets
Statement: Retirement Benefit Disclosures
FRSSE effective April 2008
CA 2006 changes
Earlier adoption not permitted
and lots of amendments and abstracts
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IFRS UPDATE
Overview of IFRS today
Stable
Platform
01/01/05
IFRS 6 and 7
Minor revisionsAnnual ImprovementsIFRIC interpretations
Several new& revised
standards
01/01/09
Reminder new in 2009
18
IFRS 8
Operating Segments
IAS 32, IAS 1
Revision re puttableinstruments
IFRS 2
Revision recancellations andvesting conditions
IAS 1 (revised)
Presentation offinancial statements
IAS 23 (revised)
Borrowing Costs
2008 Improvements
(35 amendments to 20standards)
IFRIC 16
Hedges of netinvestments in aforeign operation
IFRIC 13
Customer loyaltyprogrammes
IAS 39
Amendment rereclassifications
IFRS 1, IAS 27
Revision re cost ofinvestments
IFRS 7 (revised)
Financial Instruments:Disclosures
IFRIC 15
Construction of RealEstate
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IFRS 8
Effective 1 January 2009
Earlier adoption permitted
Key changes:
Applies only to listed entities
Identification of operating segments based on internalreports
The amount of each operating segment item to be the
measure reported to the chief operating decision maker
IFRS 8 Segment Reporting
IAS 1 Revised
Effective 1 January 2009
Earlier adoption permitted
Key changes:
Aggregate key financial information on the basis ofshared characteristics
Statement of Comprehensive Income
Changes in titles of some the financial statements
Third balance sheet required in some cases
IAS 1 Presentation of Financial Statements
Amendment to IFRS 1 and IAS 27
Deemed cost of investments insubsidiaries, associates,jointly controlled entitiesmeasured at:
Fair value; or
Carrying amount underprevious accounting practice
Definition of cost method
removed; and
Dividends as income inseparate entity financialstatements (previouslypreacquisition dividends were
deducted from cost)
Effective 1 January 2009
Earlier adoption permitted
IFRS 1 First-time adoption of IFRSIAS 27 Consolidated and Separate
Financial Statements
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8
New for 2010
22
IFRS 3 & IAS 27
Business combinations-New regime
(1 July 2009)
IFRIC 12
Service concessions-PFI/PPP operators
(29 March 2009)
IFRIC 17
Distribution of non-
cash assets to owners-Fair value gain in P&L
(1 July 2009)
IFRIC 18
Transfer of assets fromcustomers
-Utility companies
(1 July 2009)
Amendment to IAS 39Eligible hedged items
-Permits portions ofrisks and cash flows
(1 July 2009)
Amendment to IFRS 2Group cash-settled
schemes
-Extends groupallocation
(1 January 2010)
2009 Improvements
-15 changes to 12standards
(Mostly 1 January2010)
IFRS 3 revised and amendment to IAS 27
IFRS 3 Business CombinationsIAS 27 Consolidated and Separate
Financial Statements
Effective 1 July 2009
Earlier adoption permitted
Key changes:
Partial acquisitions
Step acquisitions
Acquisition related costs
Contingent consideration
Transactions with non-controlling interests
2009 Annual improvements
Effective 1 January 2010
Earlier adoption permitted
Key change:
Guidance on classifying leases of land deleted; now onthe same basis as buildings.
Applies retrospectively therefore need to revisit all
leases of land.
IAS 17 Leases
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10
Disclosure requirements
Illustrative financial statements
Presentation and disclosure checklist
IFRS for SMEs: The Basics
THE FUTURE OF UK GAAP
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11
ASB Consultation Future of UK GAAP
PUBLICLY ACCOUNTABLE EU IFRSTier 1
THE MIDDLE TIER IFRS FOR SMEs
Tier 2
SMALL COMPANIES FRSSE
Tier 3
ASB reviewing comment letters
ASB Consultation Future of UK GAAP
Proposals are intended to apply to all entities except those in
the public sector
SORPs retained where there is clear and demonstrable need
Supplementary guidance material specific to PBEs
ASB now considering a 4th tier for subsidiaries
Suggested date 1 January 2013 (?)
EU developments: possible exemption of micros from
statutory financial reporting requirements
Exposure draft expected late 2010
THE FINANCIAL
REPORTING FACULTY
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ICAEW Website
icaew.com/frf
Information for Better Markets
Thought leadership in financial reporting
Broad themes:
Measurement
Disclosure
Regulation
Current publications:
New Reporting Models for Business (2003)
Measurement in Financial Reporting (2006)
Developments in New Reporting Models (2009) Expected later this year:
Business Models in Accounting: The Theory of the Firm and FinancialReporting (November 2010?)
IFBM Events PD Leake lecture 21 October 2010
Financial reporting and financial stability: what can we learn fromhistory?
IFBM Conference 20-21 December 2010
Adopting IFRS: the global experience.
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Financial Reporting Faculty
Monthly bulletins eIFRS
Standards Tracker IFRS andUK GAAP
Factsheets
Journal
Events and webcasts
Community platform
www.icaew.com/frfJoin the faculty
Any questions
?
A world leader of the
accountancy and finance profession
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Promote four themes: responsible
providers, responsible consumers, betterregulationand better information
Financial Services Faculty
InspiringConfidence in Financial
Services
Are banks different?conferencein London and stakeholder engagement
on how auditors can contribute tofinancial stability
Financing Change
Improve understanding of howbeneficial corporate finance
deal-making depends on imagination,infrastructureand information
Corporate Finance Faculty
Convene advisory group and holdevents on publications and current
funding issues
Thought leadership in 2010
Information forBetter Markets
Audit and AssuranceFaculty
Towards a Better
Tax System
Focus attention on alternatives toauditand assurance on narrative
reportingand third-partyoutsourcing
Tax Faculty
Explore how in the face ofcapital market innovation, listed company
boards should maintain alignmentofinterests and transparency
Financial ReportingFaculty
SustainableBusiness
Convene auditors, business,
investors and regulators to discussaudit market needs, audit performance
and audited information
Ethics, Law andGovernance
Promote original work onfinancial reporting, including
measurement, disclosureand regulation
Market FoundationsMaking InformationSystems Work
Finance Direction
re:Assurance
Focus attention on what makes ITsuccessful through the themes of value,
trustand standards
Explore three themes: changingrole of the finance function,
managing the futureand non-financialmeasures
Explore the options, actionsandimpactsinvolved in developing a market
system that promotes sustainability
Promote understanding of howsuccessful markets are founded
on ideas about the public interest,professionalism, legal entities, regulation,
ethical behaviourand economic crime
Dialogue inCorporate Governance
Audit and AssuranceFaculty
Finance and ManagementFaculty
Ethics, Law andGovernance
Audit QualityForumPanel session at AAA in San
Francisco and participation inconferences at Yale and Birmingham
Universities
Joint seminar on non-financialinformation in Brussels with NIVRA and
engagement with members onICAEW assurance service
Two London forum meetings and one widerinvitation debate and panel sessions on
national infrastructuresat EAA inIstanbul and AAA in San Francisco
Presentations at MARG events inLondon and Birmingham and panelsession at AAA half year meeting in
Seattle
London conference on global experienceof IFRS, P D Leake lecture and EAApanel session in Istanbul on financial
stability, and panel sessions at AAA inSan Francisco on IFRS road map and
new reporting modelsExplore how tax systems measure
up to Ten Tenetsby reference to thethemes of business, peopleand delivery
Hardman lecture and Wyman symposiumin London and panel session at Tax
research network conferenceat Bangor University
AAA panel session on carbonreporting in San Francisco, ESRC-
funded seminars, IFAC WorldCongress plenary session in KL and
events to supportFinance Innovation Lab
Publish issues paper on The role of bank auditors
Publish second edition of Private equitydemystifiedand consult on Reporting
accountants work on financial reportingprocedures
Publish issues paper on Changing shareholderbases
Publish new prospectus and Guide tosustainability assuranceand develop assurance
services on stewardship and pensions
Publish paper on National infrastructuresanddevelop paper on Financial statement reliability
under Global challengesprogramme
Publish analysis of published surveys onThe finance functionand related articles on
the other two themes
Publish Firms and markets in financialreportingand 2009 conference papers in
Accounting and Business Research
Publish paper on Tax and accountingunderbusinesstheme and issue Ten Tenetstenthanniversary publication and series of current
issues papers
Publish Guide to sustainability assuranceand two Outside insights
Publish issues paper on The public interestanddevelop paper on Economic crime
Publish paper on Information securityunder