Weekly Catch-Up 11th October
Friday 11 October 2019
Stronger accounting regulations promised by new FRC chairman
The Financial Reporting Council’s new Chairman has accelerated plans to create a new regulator in order to discipline auditors and company directors. The new chairman, Simon Dingemans, took the role after Win Bischoff stepped down following a damning report on the effectiveness of the regulator.
Mr Dingemans took over seven months after the UK government said it would follow the recommendations of the report by giving a new watchdog greater oversight of the big four accounting firms.
IFRS 9 Implementation causing banks to struggle
Although UK banks are making progress in the implementation of IFRS 9 Expected Credit Loss accounting there remains weakness in aspects of firms’ controls and management information around reporting impairment allowances.
This is the warning of the Bank of England’s Prudential Regulation Authority who said that more needs to be done to ensure consistency and is calling on financial institutions and their auditors to review how to implement the accounting standard.
£7.2million deficit for Wheatley following accounting adjustment
The Wheatley group, Scotland’s largest housing association reported a 7.2 million loss for 2018/19 after changing the way it measures homes’ depreciation value. Wheatley have stated that the difference is down to “accounting alignment factors” which include its decision to align “the depreciation for the structure element of our properties at 50 years across the group” when some subsidiaries had previously used the 75-year marker.
Mutual recognition pact renewed by India and England
The Chartered Accounting Bodies for both India and England have signed a memorandum of understanding, meaning that both bodies recognise each other’s qualifications. The Institute of Chartered Accountants for England and Wales signed the memorandum with The Institute of Chartered Accountants for India at the ICAEW headquarters in London on October 2nd in an agreement that will also create a pathway for their members to become members of other institutes.
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