Professional ethics

Anne Davis Integrity and Ethics Manager

ICAEW Code of Ethics key points

IFAC + Mandatory www.icaew.com/ethics

Principles based approach

Consider threats Objectivity Professional Audit and Competence Assurance & due care Integrity or dont do it

Apply safeguards Professional Information Technology behaviour Confidentiality Tax

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 professional services... to client or employer should act diligently and in accordance with applicable technical and professional standards.

Confidentiality
respect the confidentiality of information acquired

. confidential information should not be used for the personal advantage

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 reevaluated by you and you were responsible for that judgement Advocacy: may occur when you promote a position or opinion to the point that subsequent objectivity may be compromised

Threats (continued)
Familiarity: may occur when, because of a close relationship, you become too sympathetic to the interests of others Intimidation: may occur when your objectivity is threatened by threats, 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 their associated consequences?

Test your decision

Is the proposed solution workable? Would a reasonable (and informed) third party reach the same conclusion? Will the decision compromise my professional and/or personal reputation? Would the decision, if open to public scrutiny, make me, my family, 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 the proposal for the new benefits package 3. Develop the proposal, declare your conflict of interest and dont vote on the proposal.

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 any further. After all, you are not ultimately responsible for the audit 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

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 listed entities 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 to apply alternative safeguards instead of partner rotation to address familiarity threat Requiring mandatory "cooling-off" period before a key audit partner joins former audit client that is public interest entity, or individual who is a firm's Senior or Managing Partner (Chief Executive or equivalent) joins such an audit client

Key changes to independence requirements

Prohibiting key audit partners from being evaluated on or compensated for selling non-assurance services to their audit clients Blanket prohibitions of providing non-assurance services to audit and 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 audit if total fees from an audit client that is public interest entity exceed 15 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

www.icaew.com/ethics anne.davis@icaew.com

Does it matter any more whether a small or medium sized business sets up as a company?
Anita Monteith 1 July 2010

Size of the SME sector

4.8 million private sector enterprises in the UK at the start of 2008 Small and medium-sized enterprises (SMEs) together accounted for 99.9% of all enterprises, 59.4% of private sector employment and 50.1% of private sector turnover. Private sector total 23.1 million employees 3,000 billion turnover SMEs

13.7 million employees 1,500 billion turnover

SME business creation

500 new businesses created every day Enhanced online services for SMEs (Budget 2010 Red Book, para 4.20)
Delivering a new relationship with business: Reducing burdens and helping businesses get it right From Businesslink:
A personalised web service for those starting up in business; better access to 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 to register for multiple taxes online and to authorise tax agents

SME business form

Legal structures available Sole trader Partnership Limited company Limited liability partnership

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 is different for different business forms.

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 the individual regardless of how much cash is withdrawn Income tax rates 20%, 40% and from 2010/11, 50% Class 2 national insurance contributions (NICs) (currently 2.40 per week in 20010/11) Class 4 NICs at 8% on profits between 5,715 and 43,875 per year and at 1% on profits above 43,875

What tax is payable by a partnership

Partnerships are tax transparent Individual partners are taxed personally on their shares of profits, gains and losses as set out in the partnership agreement 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 to 20%

Dividend extraction remains attractive, but para 2.74 of the Red Book, The Government remains committed to a review of IR35 and small business tax and will release further details shortly

What is IR35?
Simplest case, Friday to Monday workers. Bob has been employed for many years by Computit Ltd
He leaves his employment on Friday and is re engaged as a freelance worker the following Monday BUT he sells his services through his own new one man company Question has the employer managed to avoid paying employers National Insurance (13.8% from April 2011)? Has Bob managed to shelter his earnings in his new company?

Bobs tax
IR35 applies. He is essentially an employee in all respects for tax purposes. His new company will have to pay all the income tax and NIC which would otherwise have been payable by him AND his old employer Managed service companies and umberella companies evolved Government clamp down followed The immediate future of IR35?

Joe LeMini
Joe LeMini has decided to start his own business repairing lawn mowers. He is married and his wife has agreed to work for the business as well. He estimates that his profits for the first year of trading, 1 April 2009 to 31 March 2010 will be 25,500.

Sole trader, employing his wife for a salary of 5,500pa

Income tax at 20% National insurance contributions Class 2 52 weeks x 2.40 Class 4 8% x (20,000 5,715) Total tax and NIC 1,142.80 3,972.60 124.80 2,705

Joe and his wife are equal partners

Income tax at 20% National insurance contributions Class 2 52 weeks x 2.40 Class 4 8% x (12,750 5,715) Mrs LeMini will pay the same Total tax and NIC 3,885.20 562.80 124.80 1,255

Joe trades through a company

Joe pays himself and his wife a minimal salary of 5,500 each. The company pays remaining profits after tax to the couple by way of dividends. Profits Less paid to Mr & Mrs LeMini Taxable Corporation tax at 21% 25,500 11,000 14,500 3,045

Does it matter any more whether a small or medium sized business sets up as a company?
If the tax bill is the only concern, then yes it does. It matters now 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

Tax Faculty
Anita Monteith 1 July 2010

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Overview of ICAEW qualifications - How we can work together

Gavin Aspden FCA Director, Qualifications

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

ACA exam structure

Credits for prior learning available

The end result

84% of FTSE 100 companies have an ACA on their board FAME Company Info June 2009 / FTSE UK Quarterly Review June 2009 / ICAEW member data June
2009

55 FDs of FTSE 100 companies hold an ACA significantly more than any other qualification Accountancy magazine April 2009 In the Accountancy Age 2009 Top 50 financial power list, of the 20 qualified accountants on the list, 15 are ICAEW members (75%)

ICAEW Other qualifications and development programmes

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-learning tuition is available. International appeal

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 world within their undergraduate and post graduate degree programmes 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

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

Overview of ICAEW qualifications - How we can work together

Gavin Aspden FCA Director, Qualifications

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

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)

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 offering accounting-related services (West of Scotland) Fair value accounting: an institutional analysis (LSE) Real integrity: practical techniques for promoting it in business (Leeds)

Thank you For more information contact Gillian Knight gilllian.knight@icaew.com

Partner in Learning
Jessica Whytehorn Academic education manager

Agenda items
Overview of Partner in Learning Scheme CFAB & BSP Credit for Prior Learning (CPL) Graduate Recruitment

Overview - Partner in Learning scheme

Higher Education Institutions (HEIs)

Engagement with ICAEW Engagement with graduate recruitment events Use of ICAEW resources & learning materials ACA/CFAB modules incorporated into programme/s

ACA Worldwide ACA training

ACA TRAINING:
UK China Cyprus Greece The Gulf Malaysia Pakistan Romania Russia Singapore

Resources - qualifications
ACA
two stages: the professional stage and the advanced stage

CFAB
Made up of six modules: business & finance, management information, accounting, law, assurance and principle of taxation

Corporate finance
Two part programme: diploma and advanced stage

BSP
made up of five modules

Icaew.com/partnerinlearning

Modular exam structure

Case study 4 hour assessment 2 Advanced Stage Modules each assessment 3.5 hours long

Advanced Stage

6 application modules each assessment 2.5 hours long

6 knowledge modules each assessment 1.5 hours long

Professional Stage

ACA qualification

Example of resource available for business & finance

Business Sustainability Programme (BSP)

Business Sustainability Programme (BSP)

What are Business Sustainability and Corporate Responsibility? What is the business case for Corporate Responsibility? Corporate Responsibility in action How do businesses embed Corporate Responsibility? What will you do? (A personal and corporate action plan)

Benefits of BSP
Flexibility to undertake the programme at any time An easy and effective method of building knowledge on corporate responsibility and business sustainability Self assessment throughout the programme consolidates the users understanding and competence in subject areas

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
Professional Stage Knowledge level - 25 Application level - 40 Advanced Stage Technical integration level - 140
Study manual Question bank Mock exams two per sitting (tutors) Electronic question bank (tutors only) Four study manuals covering each core technical area Two revision question banks Practice question bank Mock exams two per sitting (tutors) Electronic course exam question banks (tutors)

Advanced Stage Case Study - 70

Workbooks and past cases for three previous exams Workbook covering case study approach Financial analysis workbook

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)

Certificate in Finance, Accounting and Business (CFAB)

CFAB - features
Flexible study pattern and range of study options Credit for prior learning available No formal academic entry requirements Free e-membership of Faculties for a year Can be completed in a year

CFAB

How and what will students learn?

Business and Finance

Management Information

Accounting (mandatory)

Law

Assurance

Principles of Taxation

Credit for Prior Learning apply

Business and Finance

Management Information

Accounting
Accounting Law (mandatory) (mandatory)

Assurance

Principles of Principles of Taxation Taxation

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

Cost of CFAB
Fees Registration fee 6 modules exams@ 60 6 study manuals @ 25 Total 360 150 675 165

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

10

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 these papers but a decision about whether to take a credit can often rest with the employer. For students with a degree it is possible to claim up to 8 credits; for students with another professional qualification it is possible to claim up to 12 credits.

CPL- applications process

A self certification process is applied to all HEIs and Professional Bodies must take responsibility for reviewing their syllabus and matching learning outcomes with that of our own ACA/CFAB syllabus Update us immediately of any syllabus change that may impact on their credit and make an annual declaration to confirm that their courses remain fit for purpose

CPL- applications handling

Jessica Learning Team: Responsible for initial enquiries from HEIs Kirsten Learning Team: Responsible for CPL policy CPL updated alongside syllabus Guidance & support for professional bodies and Higher Education Institutions (HEIs) CPL for Memorandums of Understanding with other professional bodies CPL audit & review process Fiona Applications 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

11

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 career ambition Available in hard copy format or online icaew.com/careers

12

Presentations
Panel presentations Lecture talks Presentation evenings Would like to meet sessions

Would like to meet session

Kingston University Plymouth University Exeter University Cardiff University

13

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 & Interview workshop (Deloitte) Personal branding (Lesley Everett) Assertiveness session (Sue Smith) Supported by TM Lewin

Additional support materials

Partner Fliers (25)

Work Experience toolkit

14

Thank you for your time

icaew.com/partnerinlearning

15

A world leader of the accountancy and finance profession

16

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

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 prepare consolidated financial statements under IFRS as adopted by the EU from 2005

Financial Reporting in the UK today

IFRS
Mandatory for all listed and AIM companies in their consolidated financial statements Optional for most others Government sector moving to IFRS 2009 - 2010

UK GAAP
Remains an option for all legal entity financial statements FRSSE still available for most small entities SORPs for specialised sectors

CA 2006 Accounting changes mainly effective 6 April 2008

Blue areas indicate countries that require or permit IFRSs. Grey areas are countries seeking convergence or pursuing adoption of IFRSs.

US GAAP the roadmap

IASB and the FASB committed to convergence in 2002 Memorandum of Understanding first published by in 2006 Update in 2008
Reports the progress they have made since 2006 Sets the goal of completing their major joint projects by 2011 Short-term projects also ongoing

The boards have affirmed their commitment to developing a common set of high quality standards 30 June 2011 deadline missed delay for 6 months expected

Convergence

COMPANIES ACT 2006

Companies Act 2006

Business review
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 Effective 1 October 2007

Companies Act 2006

Part 15 Accounts and Reports
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 Mostly effective 1 April 2008

Small and Medium-sized Companies

Size Turnover m Balance sheet assets m Employees

Small Small groups

6.5 6.5 (net) 7.8 (gross)

3.26 3.26 (net) 3.9 (gross) 12.9 12.9 (net) 15.5 (gross)

50 50

Medium Medium groups

25.9 25.9 (net) 31.1 (gross)

250 250

UK GAAP

Overview UK GAAP today

Existing converged standards amended in line with changes to IFRS Some new/revised standards Further convergence put on hold

2005

2010

?
Mix of old and converged standards Mix of old and converged standards

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

IFRS UPDATE

Overview of IFRS today

IFRS 6 and 7 Minor revisions Annual Improvements IFRIC interpretations

01/01/05

01/01/09

Stable Platform

Several new & revised standards

Reminder new in 2009

IFRS 8 Operating Segments IAS 1 (revised) Presentation of financial statements IFRIC 16 Hedges of net investments in a foreign operation IFRS 1, IAS 27 Revision re cost of investments IAS 32, IAS 1 Revision re puttable instruments IAS 23 (revised) Borrowing Costs IFRS 2 Revision re cancellations and vesting conditions 2008 Improvements (35 amendments to 20 standards) IAS 39 Amendment re reclassifications IFRIC 15 Construction of Real Estate

IFRIC 13 Customer loyalty programmes IFRS 7 (revised) Financial Instruments: Disclosures

18

IFRS 8
IFRS 8 Segment Reporting

Key changes: Applies only to listed entities Identification of operating segments based on internal reports The amount of each operating segment item to be the measure reported to the chief operating decision maker

Effective 1 January 2009 Earlier adoption permitted

IAS 1 Revised
IAS 1 Presentation of Financial Statements

Key changes: Aggregate key financial information on the basis of shared characteristics Statement of Comprehensive Income Changes in titles of some the financial statements Third balance sheet required in some cases

Effective 1 January 2009 Earlier adoption permitted

Amendment to IFRS 1 and IAS 27

IFRS 1 First-time adoption of IFRS IAS 27 Consolidated and Separate Financial Statements

Deemed cost of investments in subsidiaries, associates, jointly controlled entities measured at: Fair value; or Carrying amount under previous accounting practice

Definition of cost method removed; and Dividends as income in separate entity financial statements (previously preacquisition dividends were deducted from cost)

Effective 1 January 2009 Earlier adoption permitted

New for 2010

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 noncash assets to owners -Fair value gain in P&L (1 July 2009) Amendment to IFRS 2 Group cash-settled schemes -Extends group allocation (1 January 2010)

IFRIC 18 Amendment to IAS 39 Transfer of assets from Eligible hedged items customers -Permits portions of risks and cash flows -Utility companies (1 July 2009) (1 July 2009) 2009 Improvements -15 changes to 12 standards (Mostly 1 January 2010)
22

IFRS 3 revised and amendment to IAS 27

IAS 27 Consolidated and Separate Financial Statements

IFRS 3 Business Combinations

Key changes: Partial acquisitions Step acquisitions Acquisition related costs Contingent consideration Transactions with non-controlling interests Effective 1 July 2009 Earlier adoption permitted

2009 Annual improvements

IAS 17 Leases

Key change: Guidance on classifying leases of land deleted; now on the same basis as buildings. Applies retrospectively therefore need to revisit all leases of land.

Effective 1 January 2010 Earlier adoption permitted

ICAEW study for the European Commission

icaew.com/index.cfm/route/145392

IFRS for SMEs

IFRS for SMEs

Not publicly accountable Standalone 230 pages (10% IFRS) Topics in sections Simplified Recognition and measurement simplification Some topics omitted Fewer options Reduced disclosure

Suitable for the UK?

Disclosure requirements
Illustrative financial statements Presentation and disclosure checklist

IFRS for SMEs: The Basics

THE FUTURE OF UK GAAP

10

ASB Consultation Future of UK GAAP

Tier 1 PUBLICLY ACCOUNTABLE Tier 2 THE MIDDLE TIER Tier 3 SMALL COMPANIES FRSSE IFRS FOR SMEs EU IFRS

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

11

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 Financial Reporting (November 2010?)

IFBM Events
PD Leake lecture 21 October 2010
Financial reporting and financial stability: what can we learn from history?

IFBM Conference 20-21 December 2010

Adopting IFRS: the global experience.

12

Financial Reporting Faculty

Monthly bulletins eIFRS Standards Tracker IFRS and UK GAAP Factsheets Journal Events and webcasts Community platform

www.icaew.com/frf Join the faculty

Any questions

?
A world leader of the accountancy and finance profession

13

Thought leadership in 2010

Financing Change
Improve understanding of how beneficial corporate finance deal-making depends on imagination, infrastructure and information Publish second edition of Private equity demystified and consult on Reporting accountants work on financial reporting procedures Convene advisory group and hold events on publications and current funding issues Corporate Finance Faculty

re:Assurance
Focus attention on alternatives to audit and assurance on narrative reporting and third-party outsourcing Publish new prospectus and Guide to sustainability assurance and develop assurance services on stewardship and pensions Dialogue in Joint seminar on non-financial Corporate Governance information in Brussels with NIVRA and engagement with members on Explore how in the face of ICAEW assurance service capital market innovation, listed company boards should maintain alignment of Audit and Assurance interests and transparency Faculty Publish issues paper on Changing shareholder bases Panel session at AAA in San Francisco and participation in conferences at Yale and Birmingham Universities Ethics, Law and Governance

Inspiring Confidence in Financial Services

Audit Quality Forum

Convene auditors, business, investors and regulators to discuss audit market needs, audit performance and audited information

Promote four themes: responsible providers, responsible consumers, better regulation and better information

Publish issues paper on The role of bank auditors Are banks different? conference in London and stakeholder engagement on how auditors can contribute to financial stability Financial Services Faculty

Publish paper on National infrastructures and develop paper on Financial statement reliability under Global challenges programme Information for Two London forum meetings and one wider Better Markets invitation debate and panel sessions on Promote original work on national infrastructures at EAA in financial reporting, including Istanbul and AAA in San Francisco measurement, disclosure and regulation Audit and Assurance Faculty

Publish Firms and markets in financial reporting and 2009 conference papers in Accounting and Business Research London conference on global experience of IFRS, P D Leake lecture and EAA panel session in Istanbul on financial stability, and panel sessions at AAA in San Francisco on IFRS road map and new reporting models Financial Reporting Faculty

Finance Direction
Explore three themes: changing role of the finance function, managing the future and non-financial measures Publish analysis of published surveys on The finance function and related articles on the other two themes Presentations at MARG events in London and Birmingham and panel session at AAA half year meeting in Seattle Finance and Management Faculty

Towards a Better Tax System

Explore how tax systems measure up to Ten Tenets by reference to the themes of business, people and delivery Publish paper on Tax and accounting under business theme and issue Ten Tenets tenth anniversary publication and series of current issues papers Hardman lecture and Wyman symposium in London and panel session at Tax research network conference at Bangor University Tax Faculty

Sustainable Business
Explore the options, actions and impacts involved in developing a market system that promotes sustainability Publish Guide to sustainability assurance and two Outside insights

Making Information Systems Work

Focus attention on what makes IT successful through the themes of value, trust and standards Publish paper on Information security under trust theme and academic journal paper on 2009 ICIS panel on value Panel sessions on XBRL standards at AAA in San Francisco and on trust at ICIS in St Louis and annual lecture in London IT Faculty

AAA panel session on carbon Market Foundations reporting in San Francisco, ESRCPromote understanding of how funded seminars, IFAC World successful markets are founded Congress plenary session in KL and on ideas about the public interest, events to support professionalism, legal entities, regulation, Finance Innovation Lab ethical behaviour and economic crime Ethics, Law and Governance Publish issues paper on The public interest and develop paper on Economic crime Panel session at AAA ethics symposium in San Francisco on the public interest and IFAC World Congress session in Kuala Lumpur on economic crime Ethics, Law and Governance

ICAEW

10 February 2010