Why the Principle of Capital Maintenance and the Definition of Distributable Profits Matter

Adam Leaver, Richard Murphy

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Abstract

This note, and that associated with it, has been prepared in response to the notion that the recommendations on the group disclosure of distributable reserves in the government White Paper, ‘Restoring trust in audit and corporate governance’, are too complicated for large UK based public interest entities to implement. We explain in this note the significance of addressing this issue and in our associated note why it is not legally sustainable to continue to use the existing preferred arrangement for estimating these reserves and how a better methodology is available.
Original languageEnglish
PublisherUniversity of Sheffield
Number of pages7
Publication statusPublished - 2021
Externally publishedYes

Bibliographical note

A research note for BEIS as part of the public consultation on audit reform.

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