§ Mr. Trotterasked the Secretary of State for Trade what is the Government's policy towards the draft statement on current cost accounting published by the accountancy standards committee; and whether he will make a statement.
§ Mr. NottThe exposure draft of an accounting standard on current cost accounting was published as ED24 on 30 April by the accounting standards committee of the Consultative Committee of Accountancy Bodies.
506WThe Government believe that current cost accounting will provide readers of accounts with more useful information. I hope that all concerned will now consider the draft standard with care and that constructive comments will be made to the accounting standards committee so that a final standard can be brought into effect at an early date in a form which will command the acceptance of both the compilers and users of company accounts.
The Government will be considering during the consultative period, in consultation with the nationalised industries, whether, and if so what, adjustments may be required to meet their special circumstances.
ED24 and the related guidance notes were prepared by a steering group under the chairmanship of Mr. Douglas Morpeth, taking account of guidelines prepared by Mr. William Hyde, which are being voluntarily followed by many firms. The work of the steering group received some financial support from my Department. To lay the foundations for a system of current cost accounting is a highly technical and complex operation and I should like to pay tribute to Mr. Hyde, Mr. Morpeth and the steering group for their application to the task.