HC Deb 12 July 1976 vol 915 cc16-7
13. Mr. Tim Renton

asked the Secretary of State for Trade when he expects to receive a report from the Morpeth Committee on inflation accounting.

Mr. Dell

The Inflation Accounting Steering Group, on which my Department is represented, is to report to the Accounting Standards Committee of the accountancy profession. I understand that the group hopes to send an exposure draft to the ASC by late September, with a view to its publication at the end of November.

Mr. Renton

On the basis of the information now available, does the Secretary of State think that current cost accounting represents, in the words of the Companies Act, a true and fair view of a company's past financial record? If not, does he think that the introduction of inflation accounting will require changes in company law, and should that be made mandatory on all quoted companies?

Mr. Dell

One of the decisions that we hope to be able to take following the Morpeth Committee's report is on the question whether changes in legislation will be required. I cannot say definitely at present. I think that current cost accounting is gaining acceptability rather than the opposite.