News Article - 21 February 2008
Category:

Despite half-yearly financial reports increasing by up to 27 per cent, a quarter of companies are failing to include the necessary IAS 34 requirements, it has been claimed.

Reported by Accountancy Age, the survey by Deloitte found that the length of time businesses were given to begin implementing the new reporting standards was not enough to ensure that statements were fully compliant.

Isobel Sharp, audit partner at the firm, stated that "[It] was probably an oversight caused by unfamiliarity with the rules."

However, the need to increase company disclosure may be debatable, she continued.

"Is this rule a necessity or a nicety?" Ms Sharp said.

Deloitte found that 30 per cent of companies analysed in relation to the EU Transparency Obligations Directive were found to fall short of the necessary IAS 34 requirements.

Auditors have been warned to apply increased diligence with management reporting and when using accounting softwareto prepare financial statements this year by the Financial Reporting Council.

The body claimed that limited liquidity and market turbulence have increased the risk in reports.

Article keywords: Tax body HM Revenue &amp; Customs (HMRC) has issued guidance to advise company directors on whether they will receive corporation tax relief on their pension contributions.<br/><br/>While HMRC made it known that employers could receive tax relief on pension contributions which were for the purpose of the business, it did not state whether this would also relate to the pensions of those in charge of a company.<br/><br/>The situation is now clearer however, as HMRC has said that such contributions should be classed as commercial decisions because those in charge of the business are linked to its profits.<br/><br/>Such employees should therefore qualify for corporation tax relief as their remuneration package is provided for business purposes.<br/><br/>Earlier this month, the tax body arranged an initiative which allowed investors with offshore <a href="http://www.access-accounts.com/products.aspx" target="_self">accounts</a> to inform HMRC of any income generated from the <a href="http://www.access-accounts.com/products.aspx" target="_self">accounts</a> which had previously not been recorded without incurring a full penalty.<br/>

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »