FRC faces Lords committee grilling over going concern

by Naomi Rainey

More from this author

04 Jul 2014

  • Comments

THE FRC is set to face the House of Lords Economic Affairs Committee over controversial proposals on going concern.

A third consultation into the regulator's interpretation of the Sharman Review findings closed last week. Investors subsequently described the plans as "damaging to the public interest".

An Economic Affairs Committee spokesman confirmed representatives of the FRC will be called to appear at a one-off session, likely to be held on 22 July.

While the exact details of hearing are still be finalised, the watchdog will face questions over "issues around statements of going concern".

An FRC spokesman confirmed chairman Win Bischoff (pictured) and chief executive Stephen Haddrill will provide evidence at the hearing.

If the current plans are accepted, changes to going concern will go live in October this year, along with amendments to remuneration policy in the latest UK Corporate Governance Code update.

In January, David Pitt-Watson, a key member of the Sharman inquiry, warned the FRC was in danger of departing from some of the panel's original recommendations.

In an email sent to investors and institutional representatives seen by Accountancy Age, Pitt-Watson urged them to take part in the consultation after the definition of going concern had drifted from its common sense meaning to one that only applies to its technical use.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.