ACCOUNTING REFERENCE PERIOD OF A COMPANY (Hansard, 19 October 1976)

§ Mr. Arthur Davidson
I beg to move Amendment No. 12, in page 4, line 14 leave out 'December' and insert 'March'.

Mr. Deputy Speaker
With this, we may discuss Government amendments Nos. 13 and 14.

§ Mr. Davidson
These amendments would make 31st March rather than 31st December the accounting reference date which those companies failing to notify the Registrar of their preferred date will be deemed to have chosen.
The amendment was tabled by the Opposition in Committee and had pre- 1347 viously been debated in another place. The Government were not initially persuaded that it was, on balance, a desirable change, but second thoughts are sometimes best and we have given the matter further thought, particularly in the light of points made in Committee. Extensive consultations have shown that, generally, companies have no strong view about the dates, but that auditors have a marked preference for a date other than 31st December. The argument is finely balanced, but overall we feel that we should substitute 31st March for 31st December for the purposes of the Bill.

§ Mr. Tim Renton
It is pleasing to hear the Minister say that he has had second thoughts in the light of his consultations and what was said in Committee and has been able to accept our amendments. The main points in their favour are that they would result in less bunching of accounts being produced at the end of the calendar year, that there are fewer holidays at the end of March than at the end of December, that they will help companies in the preparation of their accounts and that they will spread the load for auditors. These are valid points and I am glad that the Government have accepted them.