Click here to
Get an instant quote

MoD accounts fail to comply

The National Audit Office has qualified The Ministry of Defence’s accounts for the fourth year running after the auditor general claimed there had been a failure of compliance with IFRS.

This is not only a wake-up call for the MoD but for every business in the UK, the owners of which will need to ensure that their accountant in Prenton, or wherever the company is based, is recording everything that is required and under the most appropriate column.

Auditor general and comptroller, Amyas Morse, made his disagreements known with the MoD’s accounting choices regarding impairments and leases. He said:

“I have qualified my opinion for a fourth year because the department has not complied with the required accounting treatment for leases in International Financial Reporting Standards and is therefore likely to have omitted a material value of lease assets and liabilities from its Statement of Financial Position.”

The IFRS requires that the department states whether equipment and building leases are referred to as operational use agreements or if there is an element of financial risk involved.

The MoD, however, didn’t account for all leases in the required format, says Morse, as there are 27 contracts that have not been assessed with regards to the way in which they should be listed. Morse did add, however, that the MoD made progress with an issue that they have had for some time.

Morse further expressed disagreement with how the accounting has led to charges the MoD’s German estate.

Posted by Peter
July 23, 2013
Tax

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment