We have received a letter from the Local Authority Pension Fund Forum addressed to our Chairman via the Company Secretary, drawing our attention to a number of issues resulting from a legal opinion they have obtained. Is anyone proposing to respond to this letter which appears to involve a difference of opinion between LAPFF and the FRC?
This is a topic that has been discussed by the FD 100 Group – the current view across listed companies is that there is no requirement to disclose distributable reserves and until the requirements are changed many companies are not prepared to do this. Obviously the LAPFF is of a different opinion and are trying to garner support for their cause. We do not propose to respond to the letter/email which was addressed to our chairman via the company secretary.
We will flag it under AOB at the next Audit Committee meeting, and leave it with the auditors to update on any development. No plans to respond to letter directly.
We will respond after having discussed with our auditors. We understand that the FRC has a contrary opinion. It isn’t quite clear why the LAPPF and PIRC feel so strongly on this issue and it may in fact simply be addressed by companies disclosing more around distributable and non-distributable reserves.
(FTSE 100 company.)
We have consulted our lawyers who have advised that the most appropriate view to take is one of “we hear what you say” but this is a difference of opinion that should be resolved between the FRC and the LAPF.
Obviously if, as the LAPF recommends, IFRS 9 is not endorsed for use in the EU then the position may change and we will revisit the position.
(FTSE 250 company.)
Not at this stage. We hear that the letter has been sent to all FTSE 350 chairmen. Our auditors are in touch with the FRC which in turn is understood to be in discussion with BIS. See today’s edition of Financial Director publication which explains the background to the letter.
(FTSE 250 company.)
I have received one. I hear through the grapevine that the FRC isnt happy about it. i do not intend to do anything about it until I hear more.
(FTSE 250 company.)
I have forwarded the email on to our Chairman, as it is addressed to him. However, I have prefaced it with a suggestion that it is for information only and should be taken with a pinch of salt at this stage. My view is that this is something for the government / the FRC and the LAPFF to resolve between themselves and the LAPFF should not be using scaremongering tactics to drag companies into the debate. I am not proposing to respond to the letter.
(FTSE 250 company.)
We have spoken to our external Auditor. They have confirmed they are aware of the letter and are consulting with the FRC and BIS. We intend to await their thoughts.
(FTSE 250 company.)