§ Mr. Wakehamasked the Secretary of State for Trade whether the CCA system of inflation accounting is in line with any proposals on accounting standards likely to be adopted by the EEC.
§ Mr. Clinton DavisThe draft fourth directive on company accounts is still under discussion in the Council of Ministers. In its present form it would permit the introduction of a system of current cost accounting in the United Kingdom.
§ Mr. Wakehamasked the Secretary of State for Trade (1) whether any members of the EEC are proposing a system of inflation accounting incompatible with likely EEC standards;
(2) how the other members of the EEC's proposals for a system of inflation accounting compare with those of the United Kingdom; on what date they propose to introduce it; and what systems they propose to adopt.
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§ Mr. Clinton DavisBelgian legislation of October 1976 allows the replacement cost of fixed assets and stocks to be shown in the accounts. West Germany introduced a voluntary accounting standard in October 1975, which recommends that the effect of inflation on fixed assets and stocks should be shown in a supplementary statement. Inflation accounting proposals are also under consideration in France and the Netherlands. In introducing systems of inflation accounting, Member States will have to consider the provisions of the draft fourth directive on company law. In its present form this directive in principle permits the introduction of such systems.
§ Mr. Wakehamasked the Secretary of State for Trade whether, in view of the fact that Australia has had to postpone a system of CCA inflation accounting, he will draw the Morpeth Committee's attention to the reasons for the postponement.
§ Mr. Clinton DavisThe Morpeth Committee is aware of developments in Australia and is taking these into consideration in preparing a system of current cost accounting.
§ Mr. Wakehamasked the Secretary of State for Trade, in studying systems of inflation accounting, what consideration he gave to systems which have been or are likely to be adopted in the United States of America, Canada and Japan.
§ Mr. Clinton DavisThe Morpeth Committee has been following developments in both the United States and Canada and is taking these into consideration. It is not aware of any similar developments in Japan.