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New regulations introduce a criminal liability for large entities that fail to report on their payment practices. How can accountants help their clients stay within the law, asks Liz Loxton Caption: Illustration: Phil Hackett New payment practices regulations requiring large entities to report on their payment practices publicly every six months took effect in April 2017. Private and public companies as well as LLPs are affected and, in line with an interesting trend, these regulations introduce the prospect of criminal sanctions in the form of fines for non-compliance – an element of the legislation that finance directors won’t want to overlook. The facts The regulations form part of the Small Business, Enterprise and Employment Act 2015. Businesses and firms that meet two out of the following three criteria on their two last balance sheet dates – an annual turnover of £36m, a balance sheet total of £18m, and 250 employees or over – ne...

The Financial reporting Council’s (FRC) annual review showed small improvements in certain areas but an overall need for more to be done The FRC wants large listed companies to provide more specific data, rather than the “boiler-plate” text that is still lingering. Paul George, executive director for corporate governance at the FRC, noted that overall reporting was good but highlighted the need to beware of complacency. There was a slight improvement in narrative reporting, with increased focus on risk management at board level since the introduction of viability statements, and improvements in strategic reports. Despite improvements, such as those recorded by companies regarding performance measures, there were still questions raised over clarity and specificity, an area the authority frequently challenged. The review considered that despite the progress, there was no remarkable change regarding strategic reports since the previous year. “M...

Poundland-owner Steinhoff International has appointed PwC to conduct an independent review into accounting irregularities The company announced that new information had emerged which required investigation into accounting irregularities, and said it was unable to publish its financial results as a result. In the same statement, the South-African retailer also announced that its chief executive Markus Jooste would be leaving the company with immediate effect. Deloitte is Steinhoff’s current auditor. Deloitte declined to comment due to client confidentially obligations and the ongoing investigations. Steinhoff said in a statement that it would publish its audited 2017 consolidated financial statements when it is in a position to do so. The investigation could result in prior years’ financial statements needing to be adjusted. Jooste has been replaced by the chairman Christo Wiese, who will work as executive chairman on an interim basis. Pieter Erasmus, fo...

Accountants might not realise it, but they have a friend in technology companies. As new developments force accountants to adopt to change faster than ever, teaming up with tech providers is crucial to firms’ future success. George Richards reports. Caption: Microsoft wants number crunchers to know, strong relationships with accountants are of the utmost importance. What does Microsoft want with accountants? To be their best friend. Whether you’re a big firm or a small one-man — or woman — band, the world’s most iconic technology business wants number crunchers to know: strong relationships with accountants are of the utmost importance to Microsoft. “Helping accountants understand the world of digital transformation, the world of cloud, the world of Software as a Service (SaaS), is incredibly important,” says Paul Bolt, director of small and medium business, Microsoft UK. “We believe accountants will be asked to form opinions on behalf of their customers. The [digital] tran...

Caption: Illustrations: Rose Blake 8,000BC The birth of accounting There seems to be some dispute about the earliest evidence of accounting, with dates ranging from around 8,000BC to 5,000BC. But most historians agree that the first accounting records in evidence were made on clay tablets in Mesopotamia and may be related to temples’ trading activities and imposition of taxes. One example is a 5,000-year-old tablet that reads “29,086 measures barley 37 months Kushim”, which can be interpreted as: “a total of 29,086 measures of barley were received over 37 months. Signed Kushim”. If Kushim is the name of an individual rather than a generic title of office, then they are not only the earliest accountant but also the first person in history whose name is known to us. This would certainly knock Luca Pacioli off the top spot as “father  of accountancy” and the world’s most famous accountant.  1494 The magic of double-entry bookkeeping In 1494 Luca Pacioli, Italian...

The federal government has reconstituted the Investment and Securities Tribunal (IST) as a practical step towards restoring investors’ confidence in the capital market and repositioning it to contribute positively to the country’s economy.   The Investment and Securities Tribunal was dissolved in compliance with the Federal Government’s directive on dissolution of Boards of Parastatals, Agencies, Institutions and Government owned Companies conveyed in circular Ref. No. SGF.19/S:18/XIX/964 dated 16th October, 2015.   The reconstitution and inauguration of the Investment and Securities Tribunal (IST) is expected to enhance its effectiveness and efficiency in handling the daily rising number of the new cases in the Capital Market.   The reconstituted ten-man Investment and Securities Tribunal (IST), which has Siaka Isaiah Idoko as the Chairman, was inaugurated on Tuesday by the Minister of Finance, Mrs. Kemi Adeosun Other members are: Jude ...

The prime minister of Bahamas has announced plans to fully switch to accrual-based accounting, claiming that the current accounting system is “woefully lacking” when it comes to providing an overview of the country’s financial position. Addressing the Bahamas Institute of Chartered Accountants’ (BICA) Accountant Week last month, prime minister Hubert Minnis reportedly said the government would switch by the end of June 2022, while the accounting system would be implemented by the wider public sector by 2023. He described the move as “no small feat”, but said the current cash-based system was lacking in providing a complete and accurate view of the financial position, activities and performance, according to one of the country’s leading daily newspapers, the  Bahamas Tribune . “As policymakers we value the importance of financial reporting that meets international standards. It is essential that we are in a position to util...

Corporate reporting is how companies communicate with stakeholders as part of their accountability and stewardship obligations. Corporate reporting needs to keep pace with the developing economic reality and address the needs of a wider stakeholder audience. Rapid changes in the broader business environment have increased concerns over whether corporate reporting is continuing to fulfil its objectives. The momentum for change toward better communication and improved accountability is obvious from the increasing public debate in and interest for corporate reporting. However, a common view has yet to emerge on what the problems are, let alone how to adapt corporate reporting to achieve a better depiction of companies’ economic position and performance. Launching the debate In 2015, Accountancy Europe published the Cogito paper,   The Future of Corporate Reporting – Creating the Dynamics for Change , to stimulate an open debate among different constituents. It puts forwar...

Resources for the accounting profession Publications eIFRS — for IFRS ®  Standards, IFRIC ®  Interpretations, the IFRS Taxonomy, other authoritative guidance, illustrative examples, bases for conclusions and official translations IFRS Shop —to purchase the Red, Green and Blue books—three different compilations of IFRS Standards Stay up-to-date Alerts— register here  to receive news and alerts, including the IASB Update and the IFRIC Update, published after each Board and IFRS Interpretations Committee meeting Work plan—the Board’s current work plan can be  found here Events and conferences Upcoming events— an overview of upcoming events can be found in our  meetings and events diary Speakers—if you would like to request a speaker from the IFRS Foundation/Board for one of your own events, please follow our  speaker request process Consultations Open consultations—an overview of all consultations currently open for comment can be...

When:  5 December 2017 Where:  AICPA’s Conference on Current SEC and PCAOB Developments, Washington DC, US Speaking at the annual conference on current developments at the US Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) in Washington DC, Vice-Chair of the International Accounting Standards Board (Board) Sue Lloyd discusses the impact on companies of new IFRS Standards and how the Board supports implementation. She also talks about the Board's focus on making financial reports better communication tools between companies and investors. Content and packaging of financial reporting Sue Lloyd, Vice-Chair, International Accounting Standards Board Introduction Ladies and gentlemen, My name is Sue Lloyd and I am Vice-Chair of the International Accounting Standards Board (Board). This is the first time I have attended this conference. I am very pleased to have the opportunity to represent the Board here today. Thi...