Wednesday 28 October 2009
The Companies Act 2006 aide memoire included in our September newswire certainly proved to be popular, so much so that the author is claiming Dan Brown-esq status when it comes to the readership numbers involved! Well, the numbers may not be quite that high but we are pleased that the information has proved to be useful. It also caused quite a stir and we'd like to thank everyone who contacted us following the newswire with their own news of what they were hearing from Companies House on the subject of filing paper-based accounts.
It would be fair to say that they have been giving inconsistent guidance. We have included an update on the subject under Audit and Accountancy Issues below but please contact us if you have anything else to add!
The postal strike has also been an issue this month which prompted a few enquiries about DOCmanager, our secure document exchange service. Whilst the service wasn't intended as an alternative to the Royal Mail it was an ideal solution for the clients concerned about getting important documents to clients on time. If you think your practice could benefit from this service we have included information below.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
DOCmanager - securely transferring data
DOCmanager is our secure document management system which allows you to share and store client documents, making them available to your clients through a secure "client only" area on your website. It also allows you to share documents with large file sizes.
It can be added to any website for just £25 per month (12 month minimum contract) and would be designed to look like an integral part of your site rather than a bolt on. If you subscribe to our website service totalSOLUTION or resourceCENTRE+, DOCmanager is included in your £99 monthly fee.
For more information visit http://www.mercia-totalsolution.co.uk/docmanager
Hospitality Sector Conference
Our one day hospitality conference has been specifically designed for partners and senior managers acting for a number of clients in the hospitality industry including hotels, restaurants, bars and pubs. It is a specialist conference looking at a wide range of practical issues affecting businesses in this sector and will enable those attending to provide their clients with the best possible advice. Topics included are:
- The Hospitality Industry Today
- Green Issues - Opportunities to Reduce Carbon Footprint and Costs
- HMRC Enquiries
- Employee Fraud and the Effect on 'Bottom Line'
- Employment Law Issues
- Property and Business Tax
The 2009 Hospitality Sector Conference will be held on 2 December 2009 - Devere Holborn Bars, London. For more information visit http://www.mercia-group.co.uk/training/pdfs/HospitalityConference2009.pdf
Audit and Accountancy Issues
Filing accounts from 1 October 2009 - the story so far
In last month's newswire we updated you on some of the practical changes arising from the final implementation of the Companies Act 2006, in so far as they related to filed accounts. For accounts prepared under the Companies Act 2006, these included:
- the auditors' report delivered to the registrar does not need to be signed - the balance sheet still needs the signature of a director;
- signatures should be in black ink;
- the company name and registered number must appear on one of either; copy of balance sheet or abbreviated accounts and (where applicable) copy of the directors' report, the auditors' report or the directors' remuneration report.
The changes had been extracted from the available Registrar's Rules 2009, Volume 2, Requirements applicable to documents delivered to the Registrar in paper form, with Rules 22 and 23 being key.
You may recall that we also referred to an article appearing in the September 2009 issue of the ICAEW Audit & Assurance Faculty's publication Audit & Beyond, which provided a useful update on the Act's October 2009 implementation and summarised some of the areas that had changed.
What happened on, and after, 1 October 2009?
It seems that Companies House support lines were inundated with calls from those trying to clarify exactly what the new requirements were. We were assured that a common sense approach would prevail and from conversations that we had with you, early concerns about documents that had already been signed and / or were in the postal system (which was already disrupted in certain areas) were met with comments along the lines of as long as Companies House could clearly identify the company to which the accounts related, that they would not be rejected. Again, this was consistent with what we had been told ourselves.
We also heard differing news from you about when software providers were going to implement their changes.
Have any of your accounts been rejected?
However, last week we started to hear news that Companies Act 2006 accounts were being rejected because audit reports had not been signed and since then we have sensed a certain degree of mayhem breaking out as there seems to be very mixed messages coming out of Companies House. Clearly having accounts wrongly rejected can lead to a potentially embarrassing situation with clients.
As a result we have been in touch with the ICAEW who are successfully liaising with Companies House on this subject. Therefore, if you do find yourself in this situation, if you are happy to let us have a note of the company / LLP number and / or a note of the name of the person that you spoke to we will be happy to pass these details on to the Institute, who will take them further on members' behalf.
To be clear, if accounts are for a period which starts on or after 6 April 2008 and are filed on or after 1 October 2009 then they should not be rejected simply because the audit report is not signed.
Finally, if that wasn't enough, we also heard news of a set of LLP accounts being rejected for not complying with the Companies Act 2006, when the accounting period only began on 1 May 2008 - most of the audit and accounts provisions of the new Act do not apply to LLPs until accounting periods beginning on or after 1 October 2008.
Clarified ISAs on their way!
Earlier in October the APB issued UK and Ireland versions of 33 clarified ISAs plus a new ISQC1. The new standards will be setting the agenda on our audit update courses over the next year, in readiness for their implementation for accounting periods ending on or after 15 December 2010.
Our audit manual update preparations started when the draft standards were issued and we will continue to share news of our release plans in future editions of this newswire. Rest assured that if you are a subscriber, not only will you automatically receive an updated, compliant manual but that we will also offer a range of digital, on-line and face to face training options to suit your needs.
In the meantime if you would like to review the standards or read the summary of changes (APB staff paper) document please click here.
Revised Ethical Standard 3 issued
The APB has issued a revised version of ES3 - Long Association with the Audit Engagement. The changes affect listed companies and allow:
- audit committees to decide that the rotation period for the audit engagement partner can be extended from five to seven years in certain circumstances, where the extension is necessary to safeguard audit quality; provided that there is
- clear disclosure in annual reports of the audit committee's decision and the reasons for it.
The press release goes on to say that the Audit Inspection Unit will review the reasoning recorded by audit firms where the partner rotation period has been extended and the associated disclosures that are provided to shareholders.
Changes have also been made in respect of the rotation period for engagement quality control reviewers and further guidance has been included on factors affecting the significance of the threat to independence where other partners and senior staff are in senior positions for a long period of time.
ES 3 (Revised) applies for periods commencing on or after 15 December 2009. Early adoption is permitted. You can find a copy of the revised standard here.
Other technical guidance issued
The following other technical guidance has been issued this month:
- FRC - Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009; and
- APB - Practice Note 23, Auditing Complex Financial Instruments - Interim Guidance.
Important News for Mercia LLP SAM Subscribers - September 2009 Update Issued
Earlier this month we issued update 5.0 (dated September 2009) to our Limited Liability Partnerships SAM. The update introduced Companies Act 2006 documentation to the manual.
If your firm subscribes to this manual and has recently downloaded updates to other Mercia manuals, your usual contact will have received news of the update release by email. If you do need to make any changes to your technical manuals' contact details please email karina@mercia-group.co.uk with the details.
Solicitors' Accounts Rules SAM - update due later this week
If your firm subscribes to this manual please look out for an update (5.1, dated October 2009) that is scheduled for release on Friday 30 October. The update includes a Microsoft Word version of the Accountant's Report Form and also introduces an example letter of representation to the manual.
The update will be made available to download from our website.
Remember that you check that you have the latest versions of our manuals here.
Tax Issues
Guidance for the Special Annual Allowance
HMRC have issued guidance on the new pension rules. This can be viewed at http://www.hmrc.gov.uk/pensionschemes/chapter15v2.pdf.
NMW and tips
Helpsheet E24 Tips, Gratuities, Service Charges and Troncs has been amended to reflect the fact that, for pay periods starting on or after 1 October 2009, tips, gratuities, service charges and cover charges will not count towards National Minimum Wage pay in any circumstances.
To find out more visit http://www.hmrc.gov.uk/helpsheets/e24.pdf
New PAYE Desktop Viewer (PDV) for viewing PAYE Codes and Notices
The new PDV is available and provides an alternative way to receive, view and manage online PAYE codes and notices. If this is of interest to you visit http://www.hmrc.gov.uk/paye/tools/pdv/index.htm.
Money Laundering guidance for tax administrations
The OECD has published a handbook for tax administrations entitled 'Money Laundering Awareness Handbook for Tax Examiners and Tax Auditors', which is aimed at tax administrations around the world.
http://www.oecd.org/dataoecd/61/17/43841099.pdf
HMRC disclosure opportunities
ODF, LDF or none of the above? If you have any clients who have suffered a crisis of conscience over recent months, then dealing with HMRC in the most appropriate manner becomes crucial; for example, the ODF does not specifically provide any immunity from prosecution.
Many of you will have dealt with IVC before. Mercia has had an arrangement with them for some years, which offers preferential rates to Mercia clients, and they can provide specialist advice and help in this area. Please click here for more details of the service that they can offer or for more details about the ODF and/or LDF.
More VAT news
If you would like to read more about recent tax investigation and VAT developments, please click here for this month's IVC news round-up.
Office Gossip and Idle Chat!
Baby news
Zoe Canham, our marketing executive, gave birth to Charlotte Rose on Thursday 15 October. She weighed in at 7 12 and is the sister Issi was hoping for (the thought of having a brother wasn't appealing to her!).
Matt Green, from our design team, is expecting to become a father for the second time - any time soon! The new arrival will certainly be here before the next newswire - it could even be arriving as you read!
