Making the news this week: the daunting spectre of FRS17, pension troubles at KPMG, a legendary porn publisher seeks bankruptcy protection, and more delays to the publication of the controversial international accounting standard on share options.
On Monday, the pension accounting rule FRS17, which has revealed massive deficits in UK company pension schemes, was expected to do the same to the National Health Service, which is set to reveal a £100bn hole in its pensions.
Also on Monday, it was revealed that the government is considering fast tracking measures to limit the liability of auditors, rather than wait for the law reform bill to be passed.
Tuesday, a letter sent to KPMG employees warned that their pensions benefits are likely to be reduced to maintain scheme solvency.
And the beleagured Inland Revenue was again in trouble, as its infamous tax credit computer system was hit by a new problem, with new tax codes not being recognised, stopping funds due to low paid workers.
On Wednesday news came from across the pond that General Media, the publisher of Penthouse magazine, has filed for Chapter 11 bankruptcy protection, after years of financial difficulties.
Also on the day, some good news, with the profession feeling ‘quietly confident’ about business prospects for the coming year, according to a survey conducted by the ICAEW.
Thursday, Accountancy Age revealed that unforeseen problems have led to a hold-up in the publication of the controversial new international accounting standard on share options.
Friday, it was reported that a committee of creditors voted to keep The Accident Group in administration, rather than liquidate it, following a heated meeting of interested parties on Thursday.