1. Getting the numbers right A progress report Tim Bush Head of Governance and Financial Analysis PIRC Ltd (Research & engagement partner to LAPFF)

2. ?? © LAPFF, 20132Getting the numbers right | Tim Bush

3. 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

4. 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, 20134 Getting the numbers right | Tim Bush

5. Who left the gate open? Some things are quite difficult to own up to.... © LAPFF, 20135Getting the numbers right | Tim Bush

6. What next? ? © LAPFF, 20136Getting the numbers right | Tim Bush

7. The Accountants, FRC & FSA © LAPFF, 20137Getting the numbers right | Tim Bush

8. Motto of the Accountants Complicate Distract Confuse © LAPFF, 20138Getting the numbers right | Tim Bush

9. 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

10. PRA to the rescue... PRA November 2012 Industry wide estimate of losses still in system £50bn, similar to LAPFF © LAPFF, 201310 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

11. 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, 201311Getting the numbers right | Tim Bush

12. 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, 2013212Getting the numbers right | Tim Bush

13. Where next? All UK investment bodies have signed up to the issues that the investor coalition raised: –T&FV –Prudence –Maintenance of capital © LAPFF, 201313Getting the numbers right | Tim Bush

14. To Be Continued © LAPFF, 201314Getting the numbers right | Tim Bush