HC Deb 23 June 1992 vol 210 c144W
Mr. Austin Mitchell

To ask the President of the Board of Trade what proposals he has to prevent companies from capitalising interest paid as an asset in their balance sheets.

Mr. Neil Hamilton

This issue is best dealt with through an accounting standard.

Mr. Austin Mitchell

To ask the President of the Board of Trade if he will appoint an independent commission to investigate the impact of accounting practices on short-termism.

Mr. Neil Hamilton

No. The Accounting Standards Board's recent discussion paper proposing the inclusion in annual reports of an operating and financial review, in which managers might discuss in a structured way some of the main factors underlying the performance and financial position shown in the financial statements, makes a useful contribution to this debate.