News

Citation

(2005), "News", Measuring Business Excellence, Vol. 9 No. 1. https://doi.org/10.1108/mbe.2005.26709aab.004

News

News

Accountants’ Institutes consider consolidation

At the time of writing (January) three premier Accounting Institutes based in the UK are looking at the possibility of consolidating. The Institute of Chartered Accountants in England & Wales (ICAEW), seen as the pre-eminent European accounting body, the Chartered Institute of Public Finance Accountants (CIPFA), a world leader in its field, and the Chartered Institute of Management Accountants (CIMA), one of the foremost management accounting bodies, would combine to create a powerful voice of c.200,000 members across the full breadth of the accounting profession.

One of the main reasons given by the bodies for these consolidation talks is being in a better position to grow and influence internationally. Creating a more powerful lobby voice across the entire breadth of the modern accountancy profession is seen as a key issue. But the consolidation is not only about influence and growth, it is also intended that the combining of resources would lead to a better range and relevance of services for members.

Talks are still continuing between the three bodies and the consolidation would have to be ratified by members’ votes in all three Institutes.

International Financial Reporting Standards

Companies listed on European Union regulated markets are due to start using international financial reporting standards (IFRS) in their consolidated accounts for accounting periods beginning on or after 1 January 2005. Unlisted companies may decide to apply the standard from that date. The London Stock Exchange has also announced that it intends to mandate the use of IFRS for companies listed on the Alternative Investment Market (AIM) for financial years beginning on or after 1 January 2007. See web site www.legislation.hmso.gov.uk/si/si2004/20042947.htm

A fuller discussion of the new standard and other international accounting standard issues can be found on www.icaew.co.uk/members

Operating and Financial Review Standard

The final version of the Operating and Financial Review Standard (OFRS) may not be ready by the time the regulations are expected to come into force although the UK Accounting Standards Board(ASB) has published a draft standard.

The Government announced that listed companies will have to prepare a statutory OFR for financial years beginning on or after 1 April 2005 and the ASB released a standard based on the forthcoming regulations and the board’s existing statement of best practice which it released last year.

Consultation on the draft standard closes on 28 February 2005, and while the board intends to finalise the standard as soon as possible after this date, it said that it may not be possible to do so before April.