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Getting the numbers right

Getting the numbers right. A progress report. Tim Bush Head of Governance and Financial Analysis PIRC Ltd (Research & engagement partner to LAPFF). ??. 2005 Iain Richards. “Bringing Audit Back from the brink” Main theme that auditors were losing the plot.

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Getting the numbers right

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

  2. ?? Getting 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.... Getting 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. Getting the numbers right | Tim Bush

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

  6. What next? ? Getting the numbers right | Tim Bush

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

  8. Motto of the Accountants Complicate Distract Confuse Getting the numbers right | Tim Bush

  9. LAPPF Crying Wolf? • LAPFF puts out estimates of losses in banks from 2011 • Is dismissed in many quarters.... Getting 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 • May 2013 PRA puts out the numbers by bank • Co-op Bankis 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 Getting 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. Getting 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 Getting the numbers right | Tim Bush

  14. To Be Continued Getting the numbers right | Tim Bush

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