Sir David Tweedie
Chairman
Accounting Standards Board
FRED 19 - ACCOUNTING FOR DEFERRED TAX
I apologise for the late response to your Exposure Draft. It has taken some time for the implications of your proposals to filter through to our membership. The main areas of concern expressed to us may be summarised as follows:
1. the restriction, arising from changes in accounting treatment, in distributable reserves available to pay dividends and/or rearrange the capital structure of a business to improve shareholder value.
Message from the vice chairman of the committee Given the approaching pseudo-millennium and having time on my hands in a quiet market, I have taken to musing on fun facts for financing folk.
Message from the chairman of the committee This month’s magazine has a strong theme of ‘risk’ – perhaps appropriate for an issue that has been produced so close to the end of the millennium
The Association welcomes and endorses the Guidance on Share Issuing Good Practice for Listed Companies issued today by the Bank of England. The Guidance was developed by the Bank in conjunction with the Association and other bodies and its publication meets a long held need for sound guidance on equity issuance. It follows the recommendations of the MMC that the use of tendering for sub-underwriting should be encouraged and that the benefits of deep-discounted share issues should be explained to issuers.
Technical Recommendations - Bank of England - Guidance on Share Issuing Good Practice for Listed Companies
The Guidance, due to be published mid October by the Bank of England, is intended to help UK listed companies make informed choices about share issuing methods. The Guidance is structured as a list of questions or arguments which issuers should consider putting to their advisers, brokers and/or lead nderwriters. The MMC's recommendations for the content of the guidance were that it should:
1. encourage the use of tendering for sub-underwriting;
This booklet is intended to help UK listed companies make informed choices about share issuing methods. It has been prepared at the request of the Monopolies and Mergers Commission (MMC)1by the Bank of England and seven organisations closely concerned with share issuance, according to the procedure set out in Appendix 1.
