Rejig for profit and loss account

Article Abstract:

The UK's Accounting Standards Board has drafted new standards on profit and loss accounting that eliminates entries for extraordinary items from corporate accounts. The draft replaces extraordinary items with exceptional items which include profit and loss as well as goodwill charges resulting from the sale or cessation of business. It also requires companies to declare the costs of advertising, research and development, training, substantial repairs, and maintenance. Financial statements should reflect recognized profit and loss to show the resulting changes on net assets other than capital contributions and redemption.

Professional organizations, Financial statements, Business losses, United Kingdom. Accounting Standards Committee

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Overhaul of pension cost standard urged

Article Abstract:

The Institute of Chartered Accountants in England and Wales (ICAEW) has called for revisions in the pension cost standard (Statement of Standard Accounting Practice 24). In a review conducted for the Accounting Standards Board (ASB), the ICAEW pointed out that the SSAP 24 is hard to implement because of the costly information it requires and that it leaves basic questions unanswered. The ICAEW recommended that the ASB should try to find out if those in the actuarial profession could devise a single actuarial valuation method for accounting purposes.

Accounting, auditing, & bookkeeping, Planning, Institute of Chartered Accountants in England and Wales

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Accounting for pension costs

Article Abstract:

Statement of Standard Accounting Practice(SSAP) 24 details how pension costs should be incorporated in company accounts and makes an explicit distinction between its accounting and funding objectives. However, the existence of different pension schemes poses certain problems for its application. The Local Government Superannuation Scheme in particular, makes implementation of SSAP 24 difficult because of complexities in differentiating between funding policy and accounting treatment.

Compensation and benefits, Pensions, Public officers, Government officials, Accounting Standards Committee

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