View Full Version : CSR and accounting standards
hulahoop7
9th Nov 2007, 10:40
Apparently the CSR contained a rather overlooked passage. It committed the government and its departments to comply with International Accountancy Standards.
The issue.. it will mean that PFIs have to be recognised on the Balance Sheet, and they will also need to be depreciated... a huge impact on revenue. Apparently the Treasury thought it was a good idea, and didn't work out the consequences.
Could be aweful for the MOD, i.e. the Tanker PFI.
jb5000
9th Nov 2007, 13:40
Surely changing accounting standards will at the end of the day only affect 'accounting' profit?
Cash flows etc. remain the same and therefore so will the ability to invest in future projects.
Remember this has nothing to do with common sense. Only the Government being able to declare headline increases for us but 'what Gord Giveth Gord taketh away'
Easy steal from the MOD once again!:mad:
I wouldn't imagine that this will help the military budget!
MoD Told to Pay Back Treasury - The Telegraph 10 Nov 07 (http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/11/10/ndefence310.xml)
The Treasury has changed its rules for funding urgent supplies for troops fighting in Iraq and Afghanistan from its reserve fund, forcing the Ministry of Defence to meet more of the costs itself...
An MoD spokesman said: "We have agreed that where the costs of UORs exceed a jointly agreed estimate, MoD will repay 50 per cent of the excess costs two years later."
Turf wars and the mysterious case of the disappearing peer (http://www.mailonsunday.co.uk/pages/live/articles/columnists/columnists.html?in_article_id=492796&in_page_id=1772&in_author_id=382)- The Mail 9 Nov 07
http://img.dailymail.co.uk/i/pix/2007/11_01/drayson091107_228x323.jpg
But after speaking to friends and admirers of Lord Drayson (a self-made pharmaceutical millionaire), the account I have received has little or nothing to do with motor-racing.
It is a much more darker story, which raises disturbing questions about Gordon Brown's Government.
In fact, I am told, Lord Drayson was a conscientious and hard-working minister. He was driven near despair, however, by the fact that he could never rely on the support of the Defence Secretary, Des Browne.
Drayson was also dismayed by the constant erosion, scarcely resisted by Des Browne, of our national defence budget.
It would seem that things are even worse than they appeared.
MoD planning massive cuts to plug £2bn gap - Times 11 Nov 07 (http://www.timesonline.co.uk/tol/news/uk/article2848830.ece)
The dire state of the defence budget was the key reason behind last week’s sudden resignation of Lord Drayson, minister for defence equipment and support, according to well placed sources.