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Written question asked by Baroness Bowles of Berkhamsted (Liberal Democrat) on Monday, 25 April 2022, in the House of Lords. It was due for an answer on Tuesday, 10 May 2022. It was answered by Lord Callanan (Conservative) on Thursday, 28 April 2022 on behalf of the Department for Business, Energy and Industrial Strategy.

UK Endorsement Board

Question

To ask Her Majesty's Government whether the UK Endorsement Board has undertaken an analysis of what constitutes 'reliability' in the context of audited accounts and its endorsement criteria; if not why not; and whether any analysis includes positions from case law of applying the requirements of the Companies Act 2006.

Answer

The UK Endorsement Board has been delegated powers to consider new international accounting standards for UK adoption only; it has no remit over audit policy and audit standards.

This includes an assessment of the compatibility of new standards with the requirements of the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685 (IAS Regulations). The IAS Regulations require that “the standard meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.” These requirements were on-shored from EU legislation on the UK’s exit from the EU and have long been understood in the context of adoption of international accounting standards.

Secondary information

Type
Written question
Reference
HL7918
Session
2021-22
Grouped for answer
Yes
Subjects
Audit Accountancy UK Endorsement Board
Legislation
Companies Act 2006
Link
View this Written question on www.parliament.uk