HC Deb 16 July 1991 vol 195 cc107-8W
Mr. Cousins

To ask the Secretary of State for Trade and Industry whether he has drawn to the attention of the Accountancy Standards Board the treatment of merger and acquisition costs in company accounts and the opportunities for comparison between company performance in this matter to be made by investors.

Mr. Redwood

[holding answer 15 July 1991]: No. The treatments of the costs in acquisitions and mergers are covered by two exposure drafts issued by the Accounting Standards Committee in 1990. In due course, the Accounting Standards Board will be considering the exposure drafts and the comments received in formulating its own proposals. If the hon. Member has any observations to make, I suggest that he provides them to the board.

Mr. Cousins

To ask the Secretary of State for Trade and Industry whether the Director General of Fair Trading has completed his report on the application of bodies to become qualifying and supervisory bodies under part 1 of schedule 14 to the Companies Act 1989.

Mr. Redwood

[holding answer 15 July 1991]: I refer the hon. Member to the reply I gave my hon. Friend the Member for Colne Valley (Mr. Riddick) on 18 April, (Official Report, column 222). I expect to receive shortly the director general's reports on the amendments which the applicants have made to their rules and guidance.

Mr. Cousins

To ask the Secretary of State for Trade and Industry what plans he has to introduce legislation to require auditors to declare in company reports to shareholders whether they also offer tax advice to the company.

Mr. Redwood

[holding answer 15 July 1991]: None.

Mr. Cousins

To ask the Secretary of State for Trade and Industry whether it has been the practice of his Department to refer criticisms of auditors in his inspectors' reports to the Auditing Practices Committee and its successors.

Mr. Redwood

[holding answer 15 July 1991]: No. The Auditing Practices Committee had no regulatory functions in respect of auditors whose conduct was criticised by inspectors, nor does its successor body the new Auditing Practices Board.