§ Mr. Croninasked the Secretary of State for Trade if he will take steps to ensure that company reports indicate as accurately as possible the effects on the figures they show of inflation, capital spending allowances and stock appreciation tax relief.
§ Mr. Clinton DavisProposals have already been put forward by the accountancy profession, in Exposure Draft 19 issued by the Accounting Standards Committee, which would if implemented require companies to provide the information on their taxation position sought by my hon. Friend. As to the effects of inflation on company accounts, I have nothing to add to the answer I have given today to his separate Question on current cost accounting.
§ Mr. Croninasked the Secretary of State for Trade what steps he intends to take to bring about the general acceptance of current cost accounting as a basis for company reports instead of the figures which are now published by nearly all companies in their reports.
§ Mr. Clinton DavisOn 7th July, the Government reaffirmed their desire that current cost accounting should become the basis for the preparation of company accounts as soon as practicable. The Accounting Standards Committee is well aware of the urgent need to work out a generally acceptable basis for an account-18W ing standard, as they indicated in their statement of 29th June, and I am confident that the efforts of the Morpeth Group will be directed towards achieving this objective.