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.
UK senior partner Phil Verity has been elected for a second term at Mazars
An audit partner has been appointed at Grant Thornton in its North West offices
KPMG has been appointed with “immediate” effect as the auditor of Dorcaster
The audit for Ibstock will be taken over by Deloitte following a competitive tender process