REPORTING should remain rules- rather than principles-based because more regulation will fail to prevent further economic crises, warned a CIMA professor.
Wim Van der Stede, professor of accounting and financial management at the London School of Economics, told 130 delegates at a CIMA lecture that businesses should use financial reporting to convey a deeper understanding of their ethos and governance.
He said that comply-or-explain frameworks are “superior to rigid mandatory compliance-based regimes”, though warned that companies could still plump for the easier and cheaper ‘comply’ option. On this basis, he suggested ‘explain-and-demonstrate’ is a better approach.
“In line with this, companies would explain and demonstrate how their risk and governance practices are effective and shaped for real use rather than mostly comply through boilerplate reporting,” he added.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.