§ 5. Mr. Tim Smithasked the Secretary of State for Trade what progress has been made towards implementation of the Sandilands Report on inflation accounting.
§ The Under-Secretary of State for Trade (Mr. Clinton Davis)The Inflation Accounting Steering Group, set up by the Accounting Standards Committee with financial assistance from the Government, is continuing its task of preparing a current cost accounting standard. Meanwhile, the ASC has issued interim guidelines recommending that listed companies include in their accounts a supplementary statement to show the effect of inflation on their results.
§ Mr. SmithDoes the Minister agree that publication of the Sandilands Report, the Morpeth Report and now the Hyde guidelines on inflation accounting has led to public confusion? Is he aware that the Morpeth Committee continues to do its work notwithstanding that its proposals were rejected by the Institute of Chartered Accountants? Will his Department give a lead in clarifying the situation?
§ Mr. DavisI should have preferred to see more progress than has been made so far. The Hyde guidelines will prove to be of value, albeit within a limited scope. I do not take quite so gloomy a view as the hon. Member for Ashfield (Mr. Smith) about the progress that has been made.