§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry whether he will be requiring all large companies, as defined in the Companies Acts, to incorporate valuation of land and buildings in their annual accounts.
§ Mr. RedwoodI assume that the hon. Member is proposing a new requirement on large companies to revalue land and buildings annually in their accounts. The present law already requires fixed assets such as land and buildings to be included in the balance sheet, and directors are required to draw to the attention of shareholders any substantial difference between the market value of land and buildings and the amount included in the balance sheet where the difference is, in the directors' opinion, of sufficient significance. However, the question of accounting for fixed assets, including the need to keep valuations up to date, is due to be considered shortly by the Accounting Standards Committee with a view to the production of an exposure draft early in the new year.