The ACCA this week attacked the Accounting Standards Board for exceeding the remit of its statutory powers in its draft statement on the content of preliminary announcements.
Richard Martin, the secretary of ACCA’s financial reporting committee, said it was inappropriate for the ASB to be involved in an area that was regulated by the Stock Exchange and called for the exposure draft to be withdrawn.
‘Preliminary announcements raise no questions of accounting treatments and their content will be amplified by the full set of annual accounts,’ said Martin. ‘The Stock Exchange should set the rules and deadlines for preliminary statements,’ he added.
ASB technical director Allan Cook responded: ‘They ignore the disclosure issues.
It’s generally recognised that share prices tend to move at the preliminary stage.
There is the question of what is the minimum disclosure to give an indication of what will come out.’
Cook acknowledged that the ASB is not legally empowered to regulate such statements, but emphasised that it had no territorial dispute with the Stock Exchange.
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