§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry (1) how many companies were required to restate their annual earnings in(a) 2002 and (b) 2003; [144183]
(2) what her Department's policy is on companies with a trading presence in the UK who restate their earnings in the US. [144185]
§ Jacqui SmithThe Financial Reporting Review Panel (FRRP) considers whether the annual accounts of UK public companies and large private companies comply with the requirements of the Companies Act 1985. To date it has acted in response to complaints or other concerns and has always been able to resolve issues without the need to use its formal powers, which are to apply to the courts for an order requiring a company to restate its accounts.
The FRRP would consider in the usual way any complaint made to it about a UK company which had restated its earnings in the US. The FRRP is also introducing a pro-active element into its work—that is it will select a number of accounts for review on the basis 1042W of a risk assessment. It would be a matter for the FRRP to consider whether to look at the accounts of any UK company which restates its earnings in the US.