Insight / Buying a business - due diligence and potential risks

When eyeing up a potential merger or acquisition it is essential to ensure that due diligence is top of the agenda when buying a business to avoid any unexpected contingent or liabilities. Mercer & Hole's Caroline Stark considers the key issues to consider 

Accounting / Lords seek FRC clarification on true and fair

The Financial Reporting Council (FRC) has so far remained tight-lipped on requests from the House of Lords Economic Affairs Select Committee to clarify what constitutes ‘true and fair’

Accounting / International reporting: comparability and insurance accounting

Jeroen Van Doorsselaere, IFRS expert at Wolters Kluwer Financial Services on troublesome insurance accounting and disclosure requirements

Tax / Dodwell: could 2017 be the year for radical US tax reform?

Bill Dodwell, Deloitte head of tax policy on US tax developments set to arise due to the outcome of the presidential election and the outcome it will have on global taxation

Tax / OTS warns of tax blackhole from gig economy

HMRC is facing significant compliance issues with the rise of the so-called sharing and gig economies as it is not clear how tax on any income should be assessed and collected, according to the Office of Tax Simplification (OTS)

Tax / HMRC fails to set out contingency plan for Making Tax Digital rollout

HMRC has not agreed contingency measures with the Treasury should it run into difficulties with plans to digitise the tax system, and must take action to ensure it has a credible plan to make savings without damaging customer service, according to a report by the public accounts committee (PAC) which says its performance remains below par in several key areas

Tax / Plans for EU one-stop shop for online VAT payments

The European Commission is proposing to simplify rules for e-commerce across EU country borders by introducing a one-stop shop for online VAT payments that will cover goods as well as services, in a move which it says will cut compliance costs by 95%

Insight / Poor governance at footballer Didier Drogba's charity

The Charity Commission has issued an action plan for the Didier Drogba Foundation, after an inquiry identified governance failings, but said there was no evidence to support claims of fraud or corruption at the charity which was set up by the former Chelsea footballer and Ivorian international

Insight / Finance mole: Monkey bar’s so last year

During an offsite meeting with head office, Finance Mole is caught off guard in the once uber-cool Monkey Bar

Insight / Minimum £1m penalty introduced for breaching financial sanctions

The Treasury’s Office of Financial Sanctions Implementation (OFSI) will be able to impose penalties of up to £1m or 50% of the financial sanctions breach, depending on which is higher, from April 2017

Professional Development / People in the news: Crowe Clark Whitehill, JW Hinks, FRC

This week's news of professional moves in the sector includes a head of forensic and counter-fraud services at Crowe Clark Whitehill, JW Hinks gains a business services supervisor and tax consultant, FRC appoints a Board member

Insight / 75% of accounting graduates fear jobs will be taken by robots

Three-quarters of graduates looking to pursue a career in accounting are concerned that automation could make their role redundant within two decades, according to research from online forum WikiJob

Insight / Eight-year ban for financial services director with inadequate accounts

The director of two financial services companies has been disqualified for eight years after an Insolvency Service investigation found he had failed to keep adequate books and records to account for some £5m of expenditure

Technical Alerts

1 Dec 2016

Insight / Practice development: the future of the accounting profession

Amid regulatory, technological and political volatility, Calum Fuller, assistant editor at Accountancy, looks at the future shape of the UK’s accounting profession in the face of a spate of mergers and consolidations

Tax / HMRC ‘complicit’ in Concentrix tax credit check failures

A scathing report on the outsourcing of tax credit checks has accused HMRC of being ‘complicit’ in a ‘cut first, think later’ approach, and claims the department was negotiating the renewal of the contract with supplier Concentrix up until four days before public outcry forced HMRC to terminate the deal

Tax / Editor’s comment: HMRC remains quiet over MTD

HMRC has kept a low profile in the Making Tax Digital campaign with a lack of communications to the actual end users, bar a deluge of technical consultations, something HMRC may grow to rue in the future, says Sara White, editor, Accountancy

Accounting / CPD module - property, plant and equipment under FRS 102 - NEW

This month's exclusive CCH Daily CPD module focuses on FRS 102 and the treatment of capital versus repairs in annual financial statements, outlining the differences and enabling reporters to understand how to distinguish between the two items under new UK GAAP reporting rules

Tax / MPs warn against rushed MTD implementation

Andrew Tyrie, chair of the Treasury committee, has challenged the government over its planned timetable for HMRC to introduce its flagship making tax digital (MTD) scheme, warning that announcements made in the Autumn Statement suggest there will need to be delays to the proposed 2018 start, or implementation will be very rushed

Accounting / Updates to IFRS Foundation constitution

The trustees of the IFRS Foundation, responsible for the oversight and governance of the International Accounting Standards Board (IASB), have amended its constitution, reducing the size of the board from 16 to 14 and reclassifying the geographical distribution of trustees

Tax / OECD countries report revenues at all time high

Tax revenues collected in advanced economies have continued to increase above last year’s all-time high, with taxes on labour and consumption, particularly VAT, representing a rising share of the total, according to OECD research

Insight / Government to review gig economy

The government has begun a review of modern labour market practices with a regional tour visiting different sectors, as part of a bid to examine whether there need to be changes to the tax and legal systems to match new ways of working and ‘disruptive’ business models

Tax / Tax filing deadlines: Dec 2016 - Feb 2017

The key HMRC filing deadlines from December to February 2017 including PAYE settlement agreement, self assessment tax returns, PAYE cheque payments

Tax / Tax updates: December 2016

Revised code of conduct to curb excessive tax planning, confidentiality breach over Ingenious, Trump tax plan, Lifetime ISA rules fleshed out, application for tax postponement allowed

Insight / Development updates: December 2016

Professional development news roundup includes PKF Cooper Parry fees hit £22m, Big Four and ICAEW meet Brexit minister, Shaw Gibbs and Grant Thornton expand, FCA caps pension early exit charges

Audit / Audit updates: December 2016

In our monthly roundup of developments in audit and governance, IAASA consults on auditing framework for Ireland in FRC handover, PwC faces FRC tribunal over Connaught, IFRS revenue recognition hit for Rolls-Royce

Tax / VAT updates: December 2016

Graham Elliott, director, City & Cambridge Consultancy on effective VAT revision prior to date of registration, capital goods scheme, VAT cases

Accounting / Accounting updates: December 2016

In this month’s roundup of developments in accounting and financial reporting, BT rings £145m accounts error alarm, £10m misstatement at IT supplier, FRC calls for disclosure on tax status

Insight / Called to account: December 2016

Former Co-operative Bank CEO admits misconduct, car dealer given suspended sentence for £113k fraud, accounatnt in £40k employer tax fraud

Accounting / Legal updates: December 2016

In this month's legal updates, experts at law firm Gateley plc consider breach of duty leading to forfeiture of partnership share in Hosking EWHC 2418 (Ch), the impact of the Criminal Finance Bill on accountants working on mergers and acquisitions, and the impact of the Uber driver ruling on employment arrangements in Aslam 

Tax / Employment tax updates: December 2016

Jackie Hall ACA CTA, partner at RSM on workers' employment status post Uber, NICs on Christmas gifts, trivial benefits exemption

Technical Alerts