Eric Anstee, chief executive of the ICAEW, warned that the planned changes – designed to create greater transparency in reporting of strategy and performance – could backfire.
‘The effect of these overly prescriptive proposals, coupled with an onerous verification regime, could lead to a decline in the quality of OFRs,’ Anstee told officials.
At a Moorgate Place forum, the DTI’s accounting adviser Andrew Watchman endured an uncomfortable few hours. Having claimed the OFR could create value, he was forced to hear a litany of reasons why it would not.
Elsewhere, ACCA criticised the proposals for not going far enough. Richard Martin, ACCA’s head of financial reporting, said: ‘They have labelled areas concerning environmental and social impact as “discretionary”, which clearly opens up the possibility that certain companies won’t provide that information.’
Martyn Jones, a partner with Deloitte, called for ‘at least a year’s delay’ for the introduction of the OFR.
The DTI said it was aware of the concerns, but would not make any decisions until it had looked at all responses.
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security
The FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances'
Craig Maxwell joins the audit and assurance team in Scotland
Stephen Grayson to join the audit department in Manchester