Rugger Guy contacted me today with this stuff from the Financial Reporting Council (FRC).
The usual caveats are in place that I have no special knowledge or training in these matters.
Anyway, here it is what he thought to be the most interesting stuff for the denizens of Planet Fitba:
The Financial Reporting Council (FRC) has today called for improvements to corporate reporting in an open letter to all Audit Committee Chairs and Finance Directors. The letter reflects findings from the FRC’s Annual Review of Corporate Reporting 2018/19 (published today) and the scope for companies to improve their reporting to address matters of increasing concern to investors and enhance public trust in business.
The FRC expects companies to improve the quality reporting of forward-looking information, the potential impact of emerging risks on future business strategy, the carrying value of assets and the recognition of liabilities. Failure to report on these crucial areas undermines trust in business and can lead to the conclusion that management is either unaware of their potential impact, is being opaque, or is not managing them effectively.
In times of uncertainty, investors and other stakeholders expect greater transparency of the risks to which companies are exposed and the actions they are taking to mitigate the impact of those uncertainties. The FRC expects companies to think beyond the period covered by their viability statement and identify those keys risks that challenge their business models in the medium to longer term and have a particular focus on environmental issues.
The FRC welcomes some improvement in key disclosures of critical judgements and estimates and alternative performance measures (APMs) as reflected in companies’ strategic reports. It will continue to press companies who do not clearly report the specific judgements they have taken or who do not present APMs clearly in accordance with best practice.
Ok, my egg-chasing buddy reckons that the foregoing changes advocated by the FRC will alter the landscape for how annual accounts should be compiled and presented.
Although these proposals are aspirational I am sure that there are folks within the Blue Room who would like to see this best practice adopted.
However, I can see a Johannesburg based problem with that!
On a related matter, he reckoned that the RIFC year-end accounts were unlikely to see the light of day until the Club 1872 chaps had decided on their £500k donation-sorry shrewd investment.
His working assumption, based on the available public data, is that the Sevco numbers will be car crash material.
Consequently, better to hold them back until the Club 1872 guys agree put in more money.
I was disappointed when he gamed this out for me.
Such cynicism in one so young…
Just a wee quick search on JP Jenkins reveals that shares (not ordinary) are currently trading at 18p Klan1972 are buying them at 20p.
Makes me wonder wtf crock of shit they’re being sold as they will eventually be diluted again to pay off soft loans again.
Then I again I laughed that on FF the notion was that share dilution meant if I had £1 today and decided to swap that for two 50pm coins then somehow magically those two 50p coins would turn into £1 each. Honestly that was the logic applied to dilution.
I’m in the wrong fucking career with goon’s like that ripe for the taking
We are all having a laugh at Club 1872 “investing” another £500,000 into newco but we are also great at telling them they let their club die. I personally think anyone who makes a contribution in the name of their club should be applauded, I’m sure they are under the impression that they’re dough is going to make a difference, I’m sure none of them are in it for a pay day, what’s the problem?
It looks to me that however misguided we think they are, they’re determined not to let the new club go down the same road as the old.
To avoid letting “the new club go down the same road as the old”, they’d first have to acknowledge that there is indeed a new club and the existence of the “road” that the old club went down.
If they were really that keen to prevent this they would have tried not to allow a career criminal with 41 convictions take control of their club – one who is now a pariah in the City (formally as well as informally as had previously been the case) – and tried to use their shareholding to actually influence decision-making at the club by withholding support until certain conditions are met – instead of serving as lapdogs for Dave King and his acolytes. They are more interested in blazers and status than acting in the interests of their club/company.
I can’t find sympathy for the masses who donate while remaining wilfully blind to what is really going on. Ironically they are following the exact same “road” as the one previously travelled i.e. spend money we don’t have on the never never and ignore the consequences. All that’s missing are EBTs.
I certainly don’t have any sympathy for anyone and didn’t indicate that in my post. Why do they have to acknowledge that “they are indeed a new club”? That’s irrelevant, they think they’re helping their club, what’s the problem? Dave King’s previous or his position in the city is again an irrelevance to a football supporter who only wants they’re team to do well on the pitch.
When it comes to directors investing millions of pounds, that’s a helluva expensive blazer, you shouldn’t really be talking about people you have zero knowledge of, I happen to know one of those blazer wearing status chasers and nothing could be further from the truth, this is a man who as a lifetime supporter came into a fair bit of money and decided he wanted to invest it in his club, this is a guy who goes for a pint with his mates before the game and sits where he always sat with his mates, during the game.
Just had a quick look at the report and have no doubt that, unless Sevco were to be audited by one of the big boys in that particular playground, it won’t make a blind bit of difference to them.
The report is aimed at companies listed on the main markets. Were they to be audited by a firm of accountants who also audit listed companies, then they might have problems because one would imagine that in the interest of making their own lives easier, such firms would adopt a consistent approach to all audits.
Maybe the auditors of Sevco do audit listed companies. I simply don’t know. I probably just assumed that since they’re so poundshop orientated in all other matters they also were in this one.
Where are the Sevco Annual Accounts for Season 18/19 ? Celtic’s Annual Accounts were out Sept ..
Their A.G.M. is usually in December. For that to happen the accounts will have to be sent to shareholders in the next couple of weeks at latest. My money would be on a Friday evening.
I actually initially thought they’d come out on October 31st when Brexit was due. In the great scheme of things that would have made them small news.
I’m fairly certain that the advice on best practise from FRC will be consigned to the round file at Ibrox. It’s a large skip erm file. HH
Lol the Benny’s at club 1872 will throw whatever cash is there to continue buying shares that are constantly diluted as they don’t know any better . Imagine getting your share cut from 10% earlier year this down to 6% and the person that did that to your shares now has the BRASS neck to ask you to invest more of your cash to only see it fritter away as soon as he gets his mitts on it (Just like Charles Green did ). Now I do hope they hurry up and buy those shares so we can laugh our heads off at them for being even more stupid than their last purchase . Ah King the CHISLER you need to give him credit (oh sorry a take that back ) he really knows how to make those fools part with their cash. One of the Benny’s on FF has put it out there that club 1872 are heading towards a 26% stake in sevco in the next couple of years . Another Benny that cant count as the half a million quid in shares takes the percentage stake up to 6.47 % in the new club many many many millions more will be required before they get anywhere near 26% lol only for the CHISLER to cut it all back again . And they still won’t achieve a seat on that board no matter how many shares they attempt to gain. MUG punters (DUP ) Done Up Proper just like mad Boris did with their friends in Northern Ireland.
“Ah King the CHISLER, you need to give him credit”!!!! DON’T!!! FOR FUCKSAKES DON’T!!! Don’t give him ANY CREDIT!! You’ll NEVER see a penny back!!!
King has been cold-shouldered, so if you extend any credit to him, the FCA will be on your case! 😄
Surely the £500,000 will not come into play in this set of accounts and even if it is included as future income then again surely the payments due to SDI must also be included.
I was curious about that one as well. No cash coming in at this time can have any bearing on an accounting year that ended on June 30th.
I think the implication is that if the ‘car crash’ accounts are published 1872 will be minded to withhold the £500K ‘investment’ as it will be seen as putting bad money after even worse, however they have been daft enough to fritter it away up to now so personally I don’t see that making any difference. They will latch onto any dignified moonbeam provided by King and amplified by the Scottish media for comfort.
If the proposals from FRC are adopted then the accountancy professional bodies would require to consider incorporating these in revised Accounting Standards or Statements of Recommended Practice for all companies that require an audit. Therefore if the Directors failed to adhere to the new disclosure requirements it is inevitable that the Auditor would “qualify the accounts” i.e. a qualified audit report would need to be presented in the accounts. This would immediately cast doubt in the minds of Investors and Creditors as to the validity of the information contained in the accounts with obvious consequences. Therefore the tools are there to allow auditors to police this and only very reckless Directors would take such a path no doubt to some form of Insolvency arrangement.
There is history here of course within RFC.
Could you get him to look at this and see what he makes of 2017?
The main question would be where does he think the £1.3m went?
Remember also 2018 was bumper year at Celtic.