'OFR will clash with global standards'

Link: Institute slams OFR proposals

The proposals for the OFR have already been slammed by the ICAEW and today, E&Y also added its concerns.

Not only would there be a larger than predicted increase in audit fees but the timing of its introduction in 2005 would clash with the implementation of international financial reporting standards, the firm said.

The firm called on the DTI to delay the OFR by a year to relieve the growing regulatory burden on companies.

The firm said shareholders and other stakeholders would be disappointed by the end result: ‘Shareholders’ expectations for greater predictive accuracy in forward looking statements will be dashed, and stakeholders might not understand why issues important to them were not fully addressed’.

Commenting on the consultation document, Will Rainey, senior audit partner at Ernst & Young, said: ‘We are very concerned that users of the new OFR, whether they are shareholders or other interested parties, will expect much more than the report will ever be capable of delivering.’