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August 2009

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What's our route?

As four sets of proposals for banking regulation are launched, Robert Outram argues that whatever model is chosen, it has to be tough to tame the marketplace

The road is long...

Economic analysis by the Fraser of Allander Institute suggests tentative signs of recovery, but Scotland may find it challenging to take advantage of them

Engagement partners

Douglas Nisbet examines the relationship between politics and CAs, and argues that it is essential to keep the lines of communication open

Banking reform plans unveiled

Proposals to overhaul UK banking regulation and to improve corporate governance within the sector were unveiled in July

Swine flu may strike down a sick economy

An independent economic forecast from the Ernst & Young ITEM Club says the UK GDP is likely to shrink by 4.5 per cent in 2009, but E&Y’s experts believe that if the “worst case” scenario is realised for the spread of swine flu, it could be hit for an additional three per cent

Business failure rate slowing

The Business Failures Report for the second quarter of 2009, produced by Equifax, shows that the failure rate is up by nearly 40 per cent for the same period in 2008

Retirement age review fast tracked for 2010

A review of the UK default retirement age, planned for 2011, will be brought forward to 2010

Insurers plan for Solvency II reforms

More than half (61 per cent) of UK insurers believe that the cost of implementing the European Union’s “Solvency II” regulations for the insurance sector will be less than £500,000, with a further eight per cent still having no idea of the cost, according to BDO Stoy Hayward

Accounting bodies sign environmental pledge

ICAS, along with 15 other accounting bodies from around the world, has agreed to abide by principles oiutlined by the Prince of Wales’ Accounting for Sustainability Forum

Renewable energy at heart of UK's low carbon strategy

A “transition” strategy to meet ambitious targets for cutting carbon emissions was unveiled last month by the UK Government, with a major emphasis on renewables and other “clean” energy sources

Companies will face deficits as final salary schemes close

Many companies are now looking to close their final salary pension scheme, but deficits will remain, estimates Deloitte, and the firm expects more companies to compensate by shifting capital and assets to their pension fund

Accounting 'neutral' says FRC chief

Financial Reporting Council chief executive Paul Boyle says accountants should resist pressure to use financial reporting to reduce the effect of boom and bust on company pro?ts

World gone mad

Imagine a world without accountants! Some might see that as a utopia, but Andy Blackford, a beancounter with literary ambitions, has created a nightmare vision of what happens to a country without financial guidance

Raising a fast buck for good causes

Respect to CA Jamie Partridge, who finished seventh out of 589 participants in this year’s Rob Roy Challenge

VAT threat could ground private jets

Now comes a story that will shake you to the core. It seems that the bureaucrats of Brussels are putting pressure on the UK Government to scrap the zero VAT rating currently enjoyed by private jets

Book review

Bailout Nation, Barry Ritholtz (Wiley, £16.99)

Business travel

Fat wallets needed for Tokyoites

Office Auntie

Things are a bit gruff

Letters: MPs flexible moral compass brought to book

Am I alone in feeling that your June leader and the President’s July column are too generous to our MPs?

Satisfaction guaranteed?

Keeping in touch with clients becomes more important for wealth managers in a recession, discovers Ian Harper, but why not make good communications permanent?

All that glitters...

Gold has been coveted for centuries for its representation of wealth – and is still a valuable commodity today, particularly in fluctuating economic markets. But should you stock up on sovereigns, buy bullion or keep Krugerrands under the mattress? Andrew Beach examines the options for becoming a modern-day Midas…

Followers of fashion

With interest rates slashed and high dividends a thing of the past, Graeme Lind asks whether investing for income, so prevalent in the 1980s and 1990s, is just a fad that has passed

Angelic investors

Giving to good causes, with cash, assets or time, is more popular than ever

Figures that flatter

Getting an accurate picture of your investment portfolio is vital – yet current data reporting methods can be misleading. Investors must take a close look at how performance is measured

All in the family

Susanne Beveridge explains how a new twist on the limited partnership can help offset a tougher tax regime on family trusts

Focus on performance

The dramatic fall in asset values has highlighted the importance of accurate, regular and easily understandable updates on investment performance. Stephen Quaile explains what a good investment report should include

What gives?

Andrew Boddice and Peter Robinson report on the findings of a survey that sets out to establish how business leaders in Scotland see the importance of culture and values in their organisations

City Column: The corporate takeover minefield

Following the collapse of the multi-billion pound deal between Rio and Chinalco, Angus McCrone questions whether it is time to create a world competition watchdog

Interview: Adrian Filby

As commercial director of Celtic Football Club, Adrian Filby needs to keep ahead of the game. Richard Goslan meets the man for whom net profit is as important as netting the ball…

Wheel deal

Cost-conscious employers should be looking very carefully at environmental factors when it comes to providing cars for their workforce

Savings are a green for go

Taking control of the cars used for business, and how they're driven, can save money and meet safety legislation

Crowning the company car king

Company car schemes have seen a dip in popularity in the UK over the years – largely due to ever-increasing tax burdens

It’s a risky business

The cost of insuring your business may be set to go up again but, as Steve Young explains, there are a number of ways you can manage that

What now for PFIs?

Always controversial, private finance initiative schemes have had a challenging time recently, but are they still a viable option

Ease the pain of major cuts

With Government spending set to be squeezed, finance directors in the public sector need to start preparing now and reduce costs in an efficient and sustainable manner

Look after the pennies

Riding out the recession will require a level of frugality not previously imposed on many businesses. Yet finance directors can’t hope to curb the excess until they can regain control of discretionary spending

Bringing banks to account...

Chancellor Alistair Darling’s consultation document sets out his intentions to keep the financial sector on a firm leash in relation to tax avoidance arrangement

SAO rules limited to largest companies

Under the 2009 Finance Act, the senior accounting officer of a large company will have personal accountability to HMRC (see Technical, July 2009)

HMRC v Banerjee

This case related to the deductibility of expenses and was originally won before the General Commissioners by the taxpayer in 2005. HMRC appealed, but had its appeal dismissed recently in the High Court

We're listening - HMRC aims to improve relations with businesses

HM Revenue and Customs has produced a guidance booklet on how it intends to build a more transparent and trusting relationship with large businesses

Mecca bingo case goes to Court of Appeal

As expected, HMRC has confirmed that it will be taking the Mecca bingo case to the Court of Appeal

HMRC seeks views on draft changes to its powers

HM Revenue & Customs has published two consultation documents on proposed changes to its powers, deterrents and safeguards

How forestalling could affect your pension provision

“Forestalling” was a new buzzword that appeared in this year’s Budget

Soft landing needed

HMRC has decided to make a cutting-edge software format mandatory for online filing from 2011. Let’s hope this isn’t a mistake

Updates to Standards

The Accounting Standards Board has published an amended FRS 2 Accounting for Subsidiary Undertaking and amendments to FRS 6 Acquisitions and Mergers and FRS 28 Corresponding Amounts

Replacement for IAS 39 unveiled

The International Accounting Standards Board (IASB) has published proposals aimed at making accounting for financial instruments easier for investors to understand

Comments invited on draft code

Proposals spelling out how a new governance code for audit ?rms would operate have been published by the Audit Firm Governance Working Group

IFRS for SMEs

The International Accounting Standards Board has announced the publication of its new International Financial Reporting Standard for Small and Medium-sized Entities. Amy Hutchinson explains its significance

Companies improve statements

Most companies that received a warning from the Financial Reporting Review Panel last year over disclosure of impaired assets have now improved the quality of information they provide

New disclosure requirements for heritage assets

The Accounting Standards Board has issued FRS 30 Heritage Assets, a standard aimed at improving the reporting of assets held by museums and art galleries. FRS 30 introduces signi?cant new disclosure requirements for reporting the content and value of collections

Beware the domino effect

The current economic downturn means that finance directors and in-house counsel are having to monitor very closely their loan agreements to ensure they are avoiding default situations

Kirsty is a worthy winner

Kirsty Barr, a pupil at Moffat Academy, has been awarded the 2009 Helen Jones Scholarship

ICAS appoints research adviser Angus Duff

Professor Angus Duff from the University of the West of Scotland has been appointed as research adviser for ICAS. His appointment took effect from 1 August 2009. Angus takes over from the previous incumbent, Professor Christine Helliar

Vote on open hearings for Discipline Tribunal pending

The ICAS Council has accepted the recommendation by a working group that ICAS should move to a disciplinary system that includes open hearings of the Discipline Tribunal

Accountants united

The Global Accounting Alliance met in Edinburgh in June. David Wood explains the aims of the Alliance and why ICAS is a member

Good morning, Vietnam...

Scottish accountant James McLaren explains the complexities of working with ‘goulash communism’

ICAS makes history by allowing laptops in exams

ICAS has become the first UK accounting body to allow students to sit part of their TPE exam using their own laptops

Sharing our expertise

ICAS and the Chamber of Financial Auditors of Romania (CFAR) have signed a memorandum of understanding to ensure closer co-operation between the two bodies

ICAS hosts IASB chairman

International Accounting Standards Board chairman Sir David Tweedie was the guest of ICAS at a reception for the Institute’s students and members, and a gala dinner, held in Luxembourg on 3 June