Latest Briefings from ICSA Chartered Secretary Magazine

Charities warned over property deals

Charities who enter into tenancy agreements for commercial property are being warned that such deals must be for the benefit of the charity.

FTSE raises free float requirements

Companies listed on the FTSE indexes are now required to have 25% free float due to a change in the listing rules.

Change is in the air

Following our last article in December, the Government has announced a variety of employment reforms in addition to an all-encompassing review of Employment Tribunal procedure by Mr Justice Underhill. In light of the plethora of proposals and consultations that have been announced, this article will focus upon the changes that were announced in the Governments response to the consultation Resolving Workplace Disputes.

Understanding accounts: revenue recognition

Its time to get a new mobile phone. You go to a shop and the salesman persuades you to sign a service rental contract for several years. In return you will also be given a free top-of-the-range phone that would normally retail at £150. So while you, the customer may be delighted with your new phone its just the start of a significant reporting problem for the telecoms company. Just how does the company report the £150 cost of the free phone? In other words, the telecoms company just like many other types of companies is confronted with the issue of revenue recognition. Although revenue recognition often appears to be a rather mundane topic to many businesses, it is of vital importance and goes to the heart of determining the reported profits of most businesses. A recently issued exposure draft attempts to clarify many of the new rules.

Creating magic profits

Most people think of profits as a simple case of a situation in which revenues exceed costs. But for many global banks and financial institutions, this situation is clearly not the case. Quite legitimately, a number of banks and financial institutions can take advantage of quirky accounting rules to create magic profits from their liabilities. These profits are then taken to the banks income statement to enhance the total reported earnings. In some cases, these organisations overall earnings can consist almost entirely of magic money.

Director\'s disqualification

Last month we looked at the Insolvency Services guide to the effects of a directors disqualification order. This month we will consider what can lead to disqualification in the first place. The main piece of legislation remains the Company Directors Disqualification Act 1986 (CDDA). The causes of disqualification are set out in Sections 212 of the CDDA:

Broken instruments

David Allen looks at the current controversy regarding accounting for financial instruments.

Not just a number

Julie Kaya draws attention to the need for monitoring compliance with the requirements of the Equality Act.

Safety by design

David Young and Katharine Vickery look at the proposed changes to the health and safety regime.

General anti tax-avoidance rule proposed

An independent study has concluded that the Treasury should introduce a general anti-avoidance rule (GAAR). Such anti-avoidance rules are usually used to deter and prosecute those who would avoid paying tax by using complex systems that have not specifically been outlawed by tax legislation. The study, carried out by Graham Aaronson QC, has suggested that the new rule should initially be rather narrow in its focus, covering only the main direct taxes income tax, capital gains tax, corporation tax and petroleum revenue tax, as well as national insurance contributions.

Forcing the issue

HMRC recently announced the formation of task forces to target compliance failures in specific industry sectors.

In time for Real Time?

It seems that HM Revenue & Customs (HMRC) is intent on going ahead with its new Real Time Information (RTI) Pay As You Earn (PAYE) data processing system. The proposal is likely to have a big impact on employers.

New UK residency rules likely soon after HMRC win

The long-awaited final judgement in the Gaines-Cooper tax residency case has been released, with Mr. Gaines-Cooper (GC) finally losing his five-year battle. Employer companies who have had compliance issues held over pending this decision can now expect to hear from HM Revenue & Customs (HMRC) very soon as it pursues outstanding liabilities.

An Olympian problem

Your marketing department is probably itching to send out a flyer to all your customers, associating the business in some way with the biggest sporting event to hit London in over 60 years: The Olympic Games 2012. Dont let them! At least not unless you are one of the privileged firms who have paid to be able to do so.

EU clamps down on ISIN costs

Late last year the European Commission accepted legally binding commitments offered by Standard & Poors (S&P) to abolish the licensing fees that banks pay for the use of US International Securities Identification Numbers (ISINs) within the European Economic Area (EEA). This case is part of an EU Commission focus on targeting anti competitive practices in the provision of financial services information.