摘要:

This paper examines the legal issues raised in the celebrated Royal Mail Case and the implications of the case for the practice today. It is argued, contrary to the literature, that the case was not about the utilization of secret reserves, but about the non‐disclosure of repayments by the Inland Revenue of overprovisions for tax and that defence counsel for the auditor succeeded because of the weak factual case presented by the prosecution. The paper then argues that whilst the factual basis of the prosecution's case was extremely weak, they had missed three fundamental points: the going concern concept, the materiality concept, and the point at which an overprovision for taxation should be recognized. Various minor issues in the case are also analysed, together with the effect they had on the outcome of the case. The implications of the case are then examined and in particular, the duties of auditors where compliance with statutory disclosure provisions conflicts with the requirement to show a true and fair view and whether cases involving technical accounting issues should be heard by specialist judges and assessor

ISSN:0001-3072    

DOI:10.1111/j.1467-6281.1986.tb00120.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

The purpose of this paper is to take the conclusions reached by Peasnell (1981, 1982) and Kay (1976) and show that the use of discounted residual incomes for project evaluation purposes requires the prior appraisal on a cash flow basis. The use of residual income at the investment planning and subsequently at the accounting stages is also evaluated.

ISSN:0001-3072    

DOI:10.1111/j.1467-6281.1986.tb00121.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Clinch (1983) examined the possibility that there are cash‐flow effects involved in the decision not to comply with the requirement to depreciate buildings. He interpreted his results as evidence that non‐compliance involved greater auditing costs than compliance and provided possible benefits associated with avoiding violations of debt covenants. In this paper, the analytical and empirical grounds for expecting increased auditing costs are discussed and it is argued that, in general, such cost increases may be expected to follow qualified opinions. However, as the sample tested by Clinch consisted predominantly of continuing qualifications, it is suggested that the increasedaudit fees reported by Clinch may not be attributable to the non‐compliance qualifications. A further test of the bond‐covenant hypothesis was conducted using an alternative research design. The results from this test are inconsistent with those reported by Clinch and with the suggestion that decisions not to depreciate buildings are driven by bond‐covenant consi

ISSN:0001-3072    

DOI:10.1111/j.1467-6281.1986.tb00122.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Robb (1985) criticizes the two‐entity test proposed by McKinnonet al.(1983) as confusing and contradictory. This reply demonstrates that his criticisms also are confusing and contradictor

ISSN:0001-3072    

DOI:10.1111/j.1467-6281.1986.tb00123.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Partingtonet al.(1986) reject the criticism of the two‐entity test (Robb, 1985) on the general grounds that the article constained quotations out of contest, misquotations, incorrect assertions and incorrect referencing. It is accepted that there was one case of incorrect referencing but the other objections are rejcted. The conclusion is still drawn that the two‐entity test is impractical and depends for its operationality on clear definition of basic accounting te

ISSN:0001-3072    

DOI:10.1111/j.1467-6281.1986.tb00124.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Ashton (1984) argues that the decision in Garner v. Murray was wrong, and that the intent of the relevant provision of the English partnership Act 1890 is ‘clear’. This comment suggests that the intent is far from clear and that there are reasns for agreeing with one critical aspect of the ‘Rule in Garner v. Mu

ISSN:0001-3072    

DOI:10.1111/j.1467-6281.1986.tb00125.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Houghton (1986) is not convinced by the arguments presented earlier in Ashton (1984) and argues that the decision in Garner v. Murray is very persuasive. He also challenges some of the conclusions reachd in my ealier paper. Those conclusions are further supported here. We agree that it is time legislative changes were made.

ISSN:0001-3072    

DOI:10.1111/j.1467-6281.1986.tb00126.x

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY