LAPFF outlines Moore v Bompas on IFRS
The Local Authority Pension Fund Forum has published a detailed blow by blow riposte to the Financial Reporting Council legal counsel Martin Moore QC in his response to the Opinion from George Bompas QC, reviewing International Financial Reporting Standards (IFRS) implementation.
LAPFF’s ‘Banks Post Mortem – Follow up’ report was released last week at the 18th LAPFF Annual Conference. It follows the groundbreaking December 2011 ’UK and Irish Banks Capital Losses – Post Mortem’ report. The investor group maintains its view that the current UK accounting framework for listed companies has allowed some British banks to keep substantial losses out of net income and that the IFRS accounting framework runs counter to UK company law as well as investor interests.
In the original opinion, George Bompas QC cast doubts over the requirements under IFRS compared to the law applicable under the UK Companies Act 2006. Mr Bompas also addressed whether Martin Moore original QC’s Opinion in 2008 for the Financial Reporting Council could be relied upon. Mr Moore responded on behalf of the FRC in October 2013.
Contending arguments between the two briefs are reviewed line by line. However LAPFF notes that “the Moore response is in the form of a statement, and is not given the title of an ‘opinion’. In the Moore statement, Mr Moore still does not state whether in his opinion International Accounting Standards 1 both requires and permits an override of an IFRS that does not give a ‘true and fair’ view.
The report concludes that ‘the fact remains that five years on from the banking crisis, investors are still not receiving adequate information from the annual accounts, nor assurance from auditors, and this appears to be due to the accountancy profession and standard setters operating to a different model to that of the law.’
The full report is available from LAPFF.