Abstracts » Business

The future of the ASC

Article Abstract:

The accounting standards produced in the last few years by Great Britain's Accounting Standards Committee (ASC) have often been inconsistent, not rigorous, and replete with loopholes. The ASC must be repopulated with accountants who thoroughly understand the complexities of the issues being addressed. The Big Eight accountancy firms, who make thorough responses to standards drafts could be enlisted to help address the standards problems being reviewed by the ASC. Problems with several of the ASC standards issued in the last few years are discussed.

United Kingdom, United Kingdom. Accounting Standards Committee

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ED 40 - what about the balancing figure?

Article Abstract:

Exposure Draft (ED) 40 of the Accounting Standards Committee attempts to resolve the conflict between accounting practice and company law in the area of accounting for long-term contracts. The approach taken by ED 40 is to remove all attributable profits from long-term contracts from the balance sheet figure by recording payments on account as turnover on the profit and loss account. However, ED 40 fails to give a clear definition of turnover, nor does it provide sufficient guidance in the area of assessing contract completion.

Laws, regulations and rules, Financial statements

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A softly softly task force? No way!

Article Abstract:

The Accounting Standards Board's Urgent Issues Task Force (UITF) has arrived at a consensus regarding the accounting treatment of a convertible bond's supplemental interest. The UITF states that the supplemental interest should be accrued regardless of the likelihood of redemption. The UITF's consensus allows companies, with inappropriate policies regarding supplemental interest, a prior year adjustment.

Column, Interest, Interest (Finance), Convertible bonds

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