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Written question asked by Baroness Bowles of Berkhamsted (Liberal Democrat) on Tuesday, 17 April 2018, in the House of Lords. It was due for an answer on Tuesday, 1 May 2018. It was answered by Lord Henley (Conservative) on Thursday, 26 April 2018 on behalf of the Department for Business, Energy and Industrial Strategy.


Company Accounts

Question

To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 11 April (HL6619), why the guidance setting out generally accepted practice on realised and unrealised profits is produced by the  Institute of Chartered Accountants in England and Wales and Institute of Chartered Accountants of Scotland; and, in determining who should produce that guidance, what account was taken of section 464 of the Companies Act 2006 which provided for the Financial Reporting Council to be the body prescribed to set statements of standard accounting practice relevant to the company's circumstances and to the accounts.

Answer

The guidance issued by the Institute for Chartered Accountants in England and Wales and the Institute of Chartered Accountants of Scotland concerns the generally accepted practice of directors in determining the distribution of profits by their companies. This is not the subject of an accounting standard, which are issued by the Financial Reporting Council, as the prescribed body under section 464 of the Companies Act 2006. The powers under Section 464 of the Companies Act 2006 are limited to statements on the standard practice applicable to a company’s annual accounts.


Secondary information

Type
Written question
Reference
HL6971
Session
2017-19
Related items
Insolvency
Wednesday, 11 April 2018
Written questions
House of Lords
Company Accounts
Tuesday, 19 February 2019
Written questions
House of Lords
Subjects
Company accounts Profits Standards Financial Reporting Council Institute of Chartered Accountants in England and Wales Institute of Chartered Accountants of Scotland
Legislation
Companies Act 2006
Link
View this Written question on www.parliament.uk