ACCA - The global body for professional accountants
The proposed new corporate disclosures can only benefit companies if they increase levels of investor confidence.
—John Davies, head of technical, ACCA

Proposed new corporate disclosures can only benefit companies if they increase levels of investor confidence

ACCA (the Association of Chartered Certified Accountants), today welcomes the publication of the Sharman Inquiry’s preliminary report prepared for the Financial Reporting Council (FRC).

ACCA says that the quality of going concern assessments on the part of companies and auditors is evidently a source of continuing interest to investors. 

John Davies, head of technical at ACCA, adds: 'Directors and auditors are already expected to make their respective assessments on a structured basis, so both are already familiar with the discipline of the assessment process. As with other aspects of the reporting process, though, users of accounts receive little in the way of information about how both have satisfied themselves about the company's status.'

ACCA asserts that providing more upfront information about how and why this assessment has been arrived it is clearly something that many investors consider would give them a better understanding not only of the company's solvency but of the director’s capability to manage material risks. 

John Davies concludes: 'The proposed new corporate disclosures can only benefit companies if they increase levels of investor confidence. While we will support the idea of greater transparency on the disclosure of material risks, there must, though, be due recognition in the resulting requirements of commercial confidentiality.'

ACCA will be making a full response to the Inquiry’s proposals by the deadline of 31 December 2011. 

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For further information, please contact

Helen Thompson, ACCA Newsroom
+44 (0)20 7059 5759
+44 (0)7725 498654
helen.thompson@accaglobal.com

Notes to Editors

  1. ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. 
  2. We support our 147,000 members and 424,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 80 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence. 
  3. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.