accounts is making some parties "cross", it has been claimed.

According to a report in the Financial Times, volatility in markets is causing balance sheets to become distorted once these assets are figured in, leading to confusion and anger among some parties.

One concrete example cited of this is Goldman Sachs, the pre-tax profits of which were up by about ten per cent due to alterations on the earnings statement.

"A further self-reinforcing effect might occur with pension funds," stated the author.

"Their assets and liabilities are now marked to market and a modified form of that is put through the earnings statement."

However, he also noted that some of those angered by the shift in accounting may be parties opposed to the unification of US and international standards.

The Institute of Chartered Accountants of Scotland recently said that trust is key factor if the International Financial Reporting Standards 8 are to be accepted.
" /> Corporate insolvencies to fall in third quarter | Access UK
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Corporate insolvencies to fall in third quarter

News Article - 23 May 2012
Category: Business

According to credit reference agency Graydon UK, corporate insolvencies in Britain are likely to fall in the third quarter of 2010. The drop will most likely be 5.7 per cent on the second quarter figure and 6 per cent lower than the third quarter of 2009. The Insolvency Service will release official statistics on corporate insolvency in Q3 2010 on Friday 5th November.

Of the issues contributing to the fall, Graydon UK MD Martin Williams highlighted HM Revenue & Customs' (HMRC) Time to Pay Scheme, which allows businesses to defer tax payments during tough financial periods.

Other contributing factors include increased demand - both from domestic and foreign markets - leading to more robust financial liquidity. Corporate insolvencies during the economic downturn were frequently caused either directly or indirectly by stifled cashflow, making this improvement in liquidity a positive development for UK businesses as a whole.

Access to short-term finance has also improved as banks become more willing to lend. Targeted initiatives from individual banks and coalitions to bolster the efforts of small and medium-sized enterprises - many of which were hit particularly hard by the recession - have also helped stimulate growth amongst smaller firms.

Whilst the short-term future looks good, businesses of all sizes must not become complacent: demand is still relatively unstable, and the Government's austerity measures - in addition to the VAT rise - are likely to seriously affect cashflow from early 2011 and beyond. All companies must maximise profit margins to help ensure sufficient liquidity during the tougher market conditions likely over the next 12 months.

Access software can help companies achieve internal efficiencies: cashflow forecasting, for example, allows firms to bring together historical data with current business drivers, calculating and delivering a detailed understanding of your future financial landscape. A greater understanding of long-term financial health can help businesses make the right kinds of decisions to protect the bottom line.

For more information on Access financial software, please call us on 0845 345 3300.

Article keywords: Graydon UK, corporate insolvencies, The Insolvency Service, Martin Williams, HM Revenue & Customs, HMRC, Time to Pay Scheme, Access financial software, cashflow forecasting

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