Financial reporting

47 items, ordered by date.

1. Sir Adrian Cadbury’s handwritten notes on ‘communications with City, responsibilities and auditors

Handwritten notes from probably 3 different meetings or situations as three different papers, covering most topics of the Committee’s investigations.

2. Making corporate governance more effective, paper submitted on 1 February, 1991, to Accountancy Age

The paper briefly reviews issues in corporate governance: appointment of non-executive directors to the board and their contribution; the integrity of financial information; auditing standards and the responsibilities of auditors.

3. News release, 2 April 1991, from the Institute of Chartered Accountants of Scotland, Scots CAs set up corporate governance working party

The brief is to consider : management’s responsibility for financial statements; the need to require companies to maintain adequate internal control systems; the implications of these issues for the role of audit committees. Membership of the Committee is listed.

4. Letters commenting on increases in top salaries, May 1991

Letters to AC and RTZ expressing concern about the large increase in top salaries and accounting practices.

5. Letters, June 1991, between Sir Adrian Cadbury and Neville Bain, Coats Viyella

Neville Bain sets out some points on directors and responsibilities, annual reports and audit committees.

6. Letter, dated 10 June 1991, from IDS, Incomes Data Services Ltd

Offering sample copies of new product dealing with financial reporting by companies.

7. In confidence. Record of meeting with Sir Ron Dearing, Chairman of the Financial Reporting Council, on 11 June 1991

Objective of the meeting: to canvass Sir Ron’s view of the ground the Committee might cover.

8. In confidence. Record of meeting with Mr Nigel Macdonald, vice president of the Institute of Chartered Accountants of Scotland and partner, Ernst and Young, on 14 June 1991

Includes the terms of reference of the Working Party formed by the Institute of Chartered Accountants of Scotland to address selected issues concerning corporate governance.

9. In confidence. Note of meeting with Mr Jonathan Charkham, Bank of England on Wednesday, 19 June 1991

Contains thoughts on information disclosure, closeness of auditors to clients and Board responsibility, narrative information rather than figures, enforcement, directors’ remuneration and comments on meaning of ‘financial aspects of corporate governance’.

10. Letter, dated 19 June 1991, from J P Charkham, Bank of England, about chairman’s and directors reports and comments on accounts of Melody plc

Charkham writes to Sir Adrian including a letter to ICAS about possible inclusions in reports: summaries of key people; products or services report; prospects / financial plan for the future; performance.

11. Letter, dated 24 June 1991, to Jonathan Charkham following their meeting

Puts a point of view on the types and amount of information that should be required, remembering that many companies operate internationally.

12. Letter, dated 25 June 1991, from David Allen, SFM Ltd about the use of accountancy techniques

Also attached is a letter to the Financial Times about wealth creation by businesses and attendant accountancy practices.

13. Correspondence July/August 1991 from Hugh Collum, SmithKline Beecham

Covering letter and Hugh Collum’s response to the Accounting Standards Board’s publication on Structure of Financial Statements and the Statement of Principles

14. Background notes for meeting with Lord Gregson on 17 July 1991

Extracts relate to communication of information to shareholders and delay in achieving voting rights.

15. Draft, dated 21 August 1991, evaluating a company’s progress, prepared by Neville Bain, Coats Viyella

Paper prepared by Neville Bain. Not clear who is the intended audience.

16. Letter, dated 23 September 1991, from Roger Gray, CIMA and supporting evidence

This is a reply to a request for comments on financial reporting, audit committees and the responsibilities of auditors.

17. Memoranda to the Committee from the Financial Reporting and Auditing Group 1- giving more power to shareholders in their dealings with auditors CFACG(91)9 FRAG and 2 – the form an content of financial reporting

These documents consider the issues in detail. These documents should be with the minutes which are missing.

18. Letter, dated 16 October 1991, from Lord Chilver, chairman of the Innovation Advisory Board and copy of Chapter 3 from the IAB publication ‘Promoting innovation and long termism’, published 1990

Submisson concentrates on communication between companies and their shareholders, reporting on intangible assets and non-executive directors.

19. Letter and submission from the Society of Investment Analysts, 29 October 1991

The submission covers the composition of the Board e.g. Separate Chairman and Chief Executive, non-executive directors; qualitative and quantitative financial reports, importance of non-executive directors, external auditors and audit committees.

20. National Westminster Bank’s submission to the Committee on the Financial Aspects of Corporate Governance, November 1991

Submission covers the role and responsibilities of boards of directors, financial reporting, shareholders, auditing and regulation.

21. Correspondence with and submission from Institute of Public Relations, December 1991

Main content is ‘A submission to the Committee on the Finacinal Aspects of Corporate Governance by the Institute of Public Relations , City & Financial Group, December 1991.

22. Correspondence with Austin Mitchell and Prem Sikka and their submission, December 1991, January 1992

Covers issues such as communication between boards and shareholders, emphasis on the long term, corporate reporting, company-auditor relationships, responsibilities of non-executive directors, audit committees and auditors responsibilities.

23. Correspondence with Professor R H Gray, Dundee University, December 1991

Submission and response on social and environmental accounting

24. Letter, dated 13 December 1991, to Andrew Hugh Smith

Letter seeks to clarify the focus for the Committee. Letter also sent to Sir Ron Dearing and Mike Lickiss.

25. Handwritten notes (17 December 1991) and letter from RJ Chapman, Arthur Andersen, 7 November 1991

Letter sets out Arthur Andersen’s views as a contribution to evidence gathering.

26. Letter, dated 19 December 1991, from JP Charkham, Bank of England and extracts from Conference Board Research Report

Comments on 100 Group paper definition of corporate governance, the board should be balanced and reporting.

27. Letter, dated 14 January 1992, to MG Lickiss

Letter is responding to MG Lickiss’ comments on his draft [Standards of financial reporting and auditing] and clarification of focus of the Committee.

28. Price Waterhouse submission to the Cadbury Committee on Financial Aspects of Corporate Governance, 5 February 1992

Covers aspects of board of directors, internal controls, financial reporting, auditing.

29. Letter, dated 21 February 1992, from Dr Maurice Gillibrand and submission to the Committee

Submission covers communication between boards and stakeholders, executive and non-executive directors, corporate reporting.

30. Correspondence from Ron Dearing, Financial Reporting Council, including responses to the draft report from ICAEW, Rowena Mills Associates, Delta plc and Sears plc between 1 May 1992 and 23 July 1992

Includes comments on differentiation between executive and non-executive board members, role of auditors and non-audit fees. Memo from Nigel Peace included.

31. Letter, dated 7 May 1992, from Sir Ron Dearing, Delta plc on behalf of the Financial Reporting Council

Comments on potential for statements of conformity to become meaningless, possible progress to an international accounting regime and institutional shareholders, plus detailed comments.

32. Letter, dated 10 June 1992, from Ron Dearing, Financial Reporting Council and Companies House form 288

Suggests an additional entry on the form about directors understanding their duties.

33. Letter and comments, dated 30 June 1992, from Tim Knowles

Comments on non-executive directors, financial reporting, auditing and institutional shareholders.

34. Letter, 11 July 1992, from Ian J Mitchell

Comments on information for the small shareholder, going concern and extended comments on take-overs and fraud.

35. Letter, 16 July 1992, from Financial Reporting Council with submissions for other organisations, Paul Girolami (ICAEW), Rowen Mills Associates, Delta plc, Sears plc

Financial Reporting Council comments on the draft report and includes 2 commenting letters and earlier ones. It also makes suggestions on how to alter the text while commenting on the auditors role, non-audit fees of the auditor.

36. Letter and comments, dated 23 July 1992, from Blenyth Jenkins, the Institute of Directors

Comments in the context of the wider context of corporate governance, while focussing on internal control, self-regulation and enforcement, interim financial reporting and auditing.

37. Letter, dated 28 July 1992, from BDO Binder Hamlyn

Comments on Code of Best Practice, audit committees, directors’ contracts, reporting and aspects of auditing.

38. Letter, dated 28 July 1992, from Ian Harrison, Courtaulds plc with comments on the draft report

Comments on the requirement for interim financial reports to include balance sheets, access to professional advice for non-executive directors and the roles of directors at an AGM.

39. Letter, dated 31 July 1992, from Sir Andrew Hugh Smith, London Stock Exchange

Comments on statements of compliance with the code of best practice as an obligation but not a requirement of listing, responsibilities of the directors and financial reporting.

40. Thoughts on corporate governance, 28 August 1992

The document concentrates on financial control and reporting.

41. Letter, dated 2 July 1993, from Robert Charlesworth, including guidance on how auditors handle a statement of compliance with the Code of Best Practice and review interim reports

There is draft guidance on compliance with the Code of Best Practice and also guidance on the topic issued in December 1993. In July 1993 the APB issued a draft for comment on reviewing interim financial information.

42. Letter, dated 25 October 1993, from Howard Davies and paper (C 66 93)on financial reporting and governance, endorsed by the CBI Council

The paper sets out the many recent reforms in financial reporting and auditing practices. It supports the Cadbury proposals but calls for more coordination and consistency between the various bodies with a role in financial reporting and auditing.

43. Correspondence (September & November) with Eversheds (for Tolley’s), and Theodore Goddard about the directors’ responsibilities statements

This refers to the wording in reports and accounts about Directors’ responsibilities as mention in the Code of Best Practice. Also included is the text of an article for the Law Society’s Gazette.

44. Corporate Governance Committee meeting on 24 November 1993 including extending report’s recommendations to large private companies, progress from the monitoring subcommittee, going concern guidance, financial reporting and corporate governance ‘overload’,

In addition to the supporting doucments for the meeting it contains the minutes of the meeting.

45. Letter, dated 25 November 1994, from Paul Rutteman and comment on by the Auditing Practices Board on draft about ‘Internal control and financial reporting’

Comments on and seeks discussions with the Committee on the draft guidance on paragraph 4.5 of the Cadbury Code i.e. Reportable weakness and effectiveness of internal financial control systems.

46. Foreword for [ICAEW?] Working Group on Internal Control and Financial Reporting and accompanying handwritten fax, 15 December 1994

Foreword to the ICAEW’s guidance on internal control and financial reporting which appeared in Accountancy, February 1995.

47. Letter, dated 14 August 1995, from Nigel Peace, DTI

Letter discusses prosposed amendments to the Stock Exchange listing rules and its aim to establish itself as an effective regulator.