The economics of best advice

Article Abstract:

Demographic change, the reluctance on the part of the state to take an active role in pension provision through taxation, and an increasing emphasis on earnings based pensions indicate that the future of pensions funds will be characterized by: increasing total payments; decreasing contributions; and increasing demand on funds. The demand for cash due to a net outflow of pension funds will create a sellers' market for financial instruments creating a difficult market in which to liquidate assets. Earnings related pensions will not be supported due to a lack of demand for capital assets and the refusal of the future working population to sacrifice their standard of living. Pension fund managers must make realistic, long-term appraisals of both the dynamics of the future economy and the differences in yields offered by earnings related and money purchase schemes.

Pensions

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The financial management of schools

Article Abstract:

The financial supervision of state schools in the UK can be very difficult. The demands of the system are such that even after the passage of the UK's local management of schools (LMS) act, the national government seems incapable of understanding the defects of the local school system. Among others, the financial management of these schools is undermined by the non-synchronization of the school calendar and the the fiscal calendar. The schools' difficulties are also worsened by a financial control system that does not distinguish between revenue and capital expenditure or recognize the accrual accounting method. Moreover, the continued reliance on cash accounting methods makes school accounting illogical, particularly in the prediction of the dates of settlement for some liabilities, a situation that leads to illegal deficits.

Elementary and Secondary Schools, Elementary & Secondary Schools, Usage, Accounting and auditing, Education and state, Education policy, Schools, Education, Cash basis accounting, School accounting

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Time to rebuild the audit foundations?

Article Abstract:

The mergers in the UK accounting profession have lead to a proliferation of large firms that threatens both the status of middle and small firms and the concept of auditor independence itself. Auditor independence is threatened by the specter of large firms doing business with corporations for large fees: the firms may be tempted to go easy on the corporation in order to ensure that the large fees from the auditor-client relationship continue. Consolidation through mergers will also limit the choice of auditors by clients. Consolidation through mergers will likely lead to greater regulation by the government in order to ensure auditor independence.

Accounting, auditing, & bookkeeping, Auditing, Accounting firms, Accounting services

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