Getting the numbers right A progress report Tim Bush Head of Governance and Financial Analysis PIRC Ltd (Research & engagement partner to LAPFF)
?? © LAPFF, 20132Getting the numbers right | Tim Bush
2005 Iain Richards “Bringing Audit Back from the brink” Main theme that auditors were losing the plot. Became clear that accounting standard setters had lost the plot. Prophetic. But it went over the brink.... © LAPFF, 20133Getting the numbers right | Tim Bush
2011 LAPFF Banks Post Mortem It happened. Near total collapse of UK and Irish capital adequacy regimes. Became clear that accounting standard setters had lost the plot and FSA had gone along with it. © LAPFF, Getting the numbers right | Tim Bush
Who left the gate open? Some things are quite difficult to own up to.... © LAPFF, 20135Getting the numbers right | Tim Bush
What next? ? © LAPFF, 20136Getting the numbers right | Tim Bush
The Accountants, FRC & FSA © LAPFF, 20137Getting the numbers right | Tim Bush
Motto of the Accountants Complicate Distract Confuse © LAPFF, 20138Getting the numbers right | Tim Bush
LAPPF Crying Wolf? LAPFF puts out estimates of losses in banks from 2011 Is dismissed in many quarters.... © LAPFF, 20139Getting the numbers right | Tim Bush
PRA to the rescue... PRA November 2012 Industry wide estimate of losses still in system £50bn, similar to LAPFF © LAPFF, May 2013 PRA puts out the numbers by bank Co-op Bank is bust RBS totally dysfunctional. CEO exits. Reprivatisation not in sight. Getting the numbers right | Tim Bush
Legal Opinion – George Bompas QC LAPFF Threadneedle USS UK Shareholders Company Law should prevail over standards not consistent with T&FV Specific IFRS outcomes problematic Confusion © LAPFF, Getting the numbers right | Tim Bush
FRC goes back to its QC The Bompas questions were: –Rephrased and not answered –The one question answered-excluded cases & basic reading of the statute –And self referential (i.e. own prior work). Confusion reigns. © LAPFF, Getting the numbers right | Tim Bush
Where next? All UK investment bodies have signed up to the issues that the investor coalition raised: –T&FV –Prudence –Maintenance of capital © LAPFF, Getting the numbers right | Tim Bush
To Be Continued © LAPFF, Getting the numbers right | Tim Bush