2020

The IFRS Foundation has requested views on the IASB’s discussion paper.  UKSA and ShareSoc provided a joint response on the 31st December 2020.

1. Disclosures

Our views are that we:

UKSA and ShareSoc Policy Directors tell FCA they should not delay the implementation of ESEF

The planned introduction of the ESEF from 1st January 2020 and the enablement of machine-reading of financial reports, along with the greater transparency that this should provide, recognises the growth of and direction towards more electronic or digital financial reporting. The UKSA and ShareSoc response to the FCA on 13th August 2020 was not convinced by but had some sympathy with the arguments to delay the implementation and, as a result, said it did not agree with it.

Continuing a process initiated last year at UKSA's request, the FRC held five “Lifting the lid on the FRC 2020” virtual meetings on consecutive afternoons to discuss issues of concern to private investors. 

We recently worked with Business and Industry on the 2020 Money Management campaign. A printed publication was enclosed within every copy of the Guardian newspaper on 15 September 2020 and the content is available online at https://bit.ly/3jCKDKZ and https://bit.ly/3bUwuX7.

Capital Gains Tax and Stamp Duty

The Office of Tax Simplification (OTS) has recently been consulting on Capital Gains Tax and Stamp Duty. UKSA and ShareSoc have submitted joint responses to each of these consultations.

1. Capital Gains Tax (CGT)

Our view is that CGT:

The submission stressed the enormous importance of the enquiry "in ensuring that much needed and meaningful change is achieved within audit, both as a service to users and as improvements to the profession".

It made proposals within six key themes:

UKSA and ShareSoc have responded to the IASB’s consultation on “ED General Presentation and Disclosures”, part of their Primary Financial Statements project and focusing on proposed changes to mainly the statement of profit or loss, leaving statements of cash flows and balance sheets to later stages. This consultation is important to shareholders as users of financial statements and especially of the statements of profit or loss to understand an organisation's main business activities and financial performance.

We regret to inform members that due to the continuing Covid19 situation we have had to cancel the planned AGM-style social event scheduled for 26 October. 

The Financial Times and other outlets are reporting that Unilever could have to reverse its decision to relocate from Rotterdam to the UK if a political intitiative calling for the introduction of an exit tax in the Netherlands succeds. 

Dubbed the “Hotel California” tax law, it would make Unilever liable for an €11bn exit penalty if it proceeds with its plan to establish a single legal entity in the UK.

The legality of the proposal is now awaiting legal opinion.