When discussing the National Debt economists and other commentators routinely express it as a proportion of Gross Domestic Product (GDP). We are all used to this approach, but I am really starting to wonder about it. Other than in command economies, governments do not control or have access to all economic activity for the purposes of servicing its debt. In fact GDP itself, the measure of the domestic economy, is an...

Some analysis from the ICAEW on the most recent Whole of Government Accounts (WGA) recently published for 2015-16 prepared by Martin Wheatcroft . WGA is worth looking at because it is based on actual audited data from the underlying transactions - it takes longer to produce than the Public Sector Finance numbers, but produces a more comprehensive and far more accurate picture of what has actually happened to the taxpayer's...

Having taken a couple of days off to enjoy the summer after my week in Hong Kong and China, I spent last week focussed on issues around diversity and gender equality. Before I became President, I was the first chair of ICAEW’s Diversity Advisory Group, set up in 2016 to help ICAEW’s efforts to improve access to the profession and to do what we can to improve diversity, from student intake right up to the most...

This is the first article of a series of trends that will affect the world we live in, do business in and perhaps even the way we live. Over the next few weeks I plan to cover some important developing trends, including automation, the political environment and how what we report affects our decisions. This week, I am going to consider the impact of demographics on our public finances. Please note that the views represented...

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable...

Over recent months we’ve been working on a project to provide some materials for IPs to support them in winning work and getting out the message that directors should seek advice at an early stage. The materials will be formally launched at this year’s autumn roadshows. As part of this project we’re updating the insolvency pages on the website, to create a new approach to the insolvency section. We...

This blog was first posted by Eddy James in January 2017 on the Financial Reporting Faculty’s blog. A few years ago there was a lot of talk about Bitcoin, the fledging cryptocurrency that was threatening to take the world by storm. So much so that we included a bluffer’s guide to it in the Financial Reporting Faculty’s journal, By All Accounts, back in July 2014. You don’t hear quite as much...

Are disclosures in annual reports sufficient enough to compare financial statements across countries? With the IASB’s Principles of Disclosure project well underway it seems an appropriate time to explore the answer to this question. Last month, ICAEW published a briefing, Disclosure quality and international comparability under IFRS: evidence from pension discount rates, impairment and capitalisation of development...

If the poll results from the Financial Reporting Faculty’s recent webinar are anything to go by, the answer appears to be ‘no’! In the webinar, IFRS 16 Leases – Making sense of the new standard, we asked the audience a number of questions with some interesting results. In response to the question ‘How would you describe your state of IFRS 16 readiness?’ over 70% replied that they had...

Last week I visited Hong Kong and China with Sharron Gunn, ICAEW’s Executive Director of Members, Commercial and Shared Services, and Katherine Jefferiss, ICAEW’s Director of International Affairs. Our time in China was split between Guangzhou and Shenzhen in the province of Guangdong. ICAEW has been very active in Greater China in recent years. We have over 3,300 members in the region and our team is doing...

Following a week’s holiday, I returned to the office last week for a busy few days before my trip to Hong Kong. On Monday evening, Michael Izza and I hosted a dinner for John Preston, President, and Peter Fanning, Chief Executive, of the Chartered Institute of Taxation (CIOT). ICAEW has worked closely with CIOT for many years and the dinner was a chance for us to discuss how we can continue to support Government’s...

When people find a sense of purpose, and begin to dream and chase positive goals, the benefits are limitless. They change themselves, they better their families, they improve their communities, they help their organizations and companies to perform better, they help to create wealth and prosperity, and they contribute to society in a wide range of ways. W hat is it about having a purpose that has such a positive effect...

When people find a sense of purpose, and begin to dream and chase positive goals, the benefits are limitless. They change themselves, they better their families, they improve their communities, they help their organizations and companies to perform better, they help to create wealth and prosperity, and they contribute to society in a wide range of ways. W hat is it about having a purpose that has such a positive effect...

Last week’s Council Conference was very productive and forward-looking, with two days of discussions around key topics to the profession including ethics, the public interest and the changing technological landscape. Conversations held over the course of the two days revolved around CFAB and our wider learning offering, SIGs and faculties, district societies and governance. Each of these areas related to at least...

We have only been waiting 15 months but the Whole of Government Accounts (WGA) for 2015-16 are now published - click here to download the pdf. WGA is a set of accounts that consolidates all the public sector entities in the UK, it is akin to having 'UK PLC' on an IFRS basis. There have been quite a few recent articles and debates about the usefulness of government financial reports. Lack of timeliness was identified...

There can be no doubt that business models are evolving and becoming ever more dependent on intangible assets as technology and know-how increasingly become drivers for commercial success. The magnitude and speed with which this change has taken place is reflected in the market value components of the S&P 500 companies across the last 40 years – intangible assets representing only 17% of market value in 1975...

The new bite-sized webinars cover common issues found by ICAEW reviewers. Relevant for firms of all sizes, the webinars provide tips on how to avoid such issues. Topics include Ethical Standards, FRS102 Implementation, Fraud, and more. http://www.icaew.com/en/technical/audit-and-assurance/working-in-the-regulated-area-of-audit/audit-monitoring-support

After several months of outreach and debate, ICAEW has now submitted its response to the FRC’s proposed improvements and clarifications to FRS 102. A summary of the FRC’s key proposals (set out in exposure draft FRED 67 ) can be found in our blog posted in March 2017. General thoughts… We are broadly supportive of the FRC’s proposed amendments to FRS 102, which represent the first triennial...

Last week I travelled to Cyprus for meetings with members and stakeholders and to attend the University of Cyprus' annual awards ceremony. In spite of ICAEW’s global growth over recent years in offering ACA training around the world, Cyprus remains one of our most important training markets – indeed, it was the first country outside the UK where we started training chartered accountants. And 2017 marks...

One of the highlights from my second week as ICAEW President was attending the Social Mobility Employer Index launch event at Guildhall. I met with the Rt Hon Justine Greening, MP and Secretary of State for Education (and one of our members); the Rt Hon Alan Milburne, Chair of the Social Mobility Foundation; David Johnston, Chief Executive of the Social Mobility Foundation; and Catherine McGuinness, Deputy and Chairman...

Since becoming ICAEW President earlier this month, I’ve been asked several times by numerous different people what the role actually involves. It’s a good question and one which I thought I would answer through a weekly blog. My hope is that this blog will provide an insight into the day-to-day life of the President and further members’ understanding of what the purpose of the role really is. I will...

From 26 June to 30 June 2017, IPSASB and its Consultative Advisory Group (CAG) met in the impressive Eurostat building in Luxembourg. In fact we were in the very same room that is used to debate EPSAS (the proposed European public sector accounting standards), which I found slightly ironic. Whilst IPSASB is celebrating a 20 year existence, the CAG is relatively new, having had its inaugural meeting in June 2016. The...

The Regulations Governing The Use Of The Description Chartered Accountants and ICAEW General Affiliates have been amended (effective 19 June 2017). The main change is to the guidance criteria for the grant of dispensations set out in the annex to the regulations, which is now more ‘principles-based’ and less prescriptive. Previously the guidance criteria focused on the extent to which chartered accountants...

The PII Regulations and Guidance have been amended to provide applicants with a right of review in cases where applications for dispensation are either declined or granted subject to conditions. The Review Committee will have the same powers as the PII Committee to consider applications and to receive new evidence. Guidance on the criteria to be applied in determining requests for dispensation under the regulations has...

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland requires entities to disclose the carrying amounts of certain types of financial instruments analysed into different categories as prescribed by paragraph 11.41. This new note has proved to be a source of confusion for many with differing views as to what might be included or excluded. Should all financial instruments be included? Should...