OFR standard may miss deadline
The UK Accounting Standards Board has published a draft standard for the operating and financial review, but admitted that the final version may not be ready by the time regulations come into force.
Link: Government drops ‘due and careful enquiry’ from OFR
Following the government’s announcement last week that listed companies will have to prepare a statutory OFR for financial years beginning on or after 1 April 2005, the ASB today (Tuesday) released a standard based on the forthcoming regulations and the board’s existing statement of best practice, released last year.
Consultation on the draft standard closes on 28 February 2005, and while the board intends to finalise the standard as soon as possible after this date, it said that it may not be possible to do so before April.
The proposals involve a principles-based standard that states that the OFR should reflect the director’s view of the business and is designed to assist investors in assessing the strategies adopted and the potential for those strategies to succeed. The ASB has also prepared some draft implementation guidance to help companies in preparing an OFR
‘The proposals issued today set out what we believe is an open and flexible structure for the OFR within which the directors can present their analysis of the business and its particular circumstances,’ said ASB chairman Ian Mackintosh.
‘We look forward to receiving the views of all interested parties on this important issue.’