PracticeConsultingASB to probe insurance industry accounting

ASB to probe insurance industry accounting

The Accounting Standards Board has been asked probe the role of accounting standards in the insurance industry following the release of the Penrose report into the near-collapse of Equitable Life.

Link: Penrose offers little hope for policyholders

Financial secretary Ruth Kelly told MPs that she had asked the standard-setter ‘to initiate a study into the accounting for with-profits business by life insurers’.

Delivering her statement on Penrose, she said: ‘The study will have particular emphasis on identifying ways of improving the transparency of reporting.’

Kelly also announced that Paul Myners will lead a review into the corporate governance arrangements applicable to mutual life offices in comparison with that for companies and review the level of regulation of mutuals by the FSA.

She said: ‘The government sees no reason in principle why boards of mutual life offices should not be as accountable to their members as those of comparable companies are to their shareholders.’

A third ‘wide ranging review’ will be carried out into the actuarial profession – whose lack of professional standards came in for savage criticism from Penrose.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer