Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what assessment they have made of the consistency of the use of current market values in company accounts with the preparation of accounts on a going concern basis; and what assessment they have made of the adequacy of international accounting standards on current market values, following the collapse of companies such as Carillion and Thomas Cook which applied these standards.

BEIS and the FRC are responsible for UK accounting standards as set out in the Companies Act 2006. The FRC’s Accounting and Reporting Policy Team’s remit is to follow and comment on the work of the IASB as it develops IFRS. The FRC regularly discuss improvements and amendments to standards with the IASB and responds to consultations in the light of discussions with stakeholders.

At the end of the Transition Period, the UK Endorsement Board (UKEB) will work directly with IASB as part of their responsibilities for endorsing and adopting IFRS for the UK. One of the key responsibilities of the UKEB will be to ensure that adopting IFRS are in the UK’s public interest.

The investigations into Carillion and Thomas Cook are ongoing. We will consider the outcome of these investigations and where necessary bring findings to the attention of the IASB.