The Association of International Certified Professional Accountants welcomes shift towards principles based regulation.
The Association looks forward to working with the UK Financial Reporting Council (FRC) to address the trust deficit in business and create a revised code fit for companies, investors and the public at large.
The existing code has made a positive impact over the past 25 years, but the Association welcomes the proposed shift to a sharper focus on principles within the new proposed code and on corporate culture.
The Association does, however, believe there is an opportunity to evolve the discussion on business models, which should be further embedded as a critical governance decision-making tool, to help avoid the serious strategic missteps that lead to corporate failures and undermine trust in businesses.
Andrew Harding FCMA, CGMA, Chief Executive – Management Accounting – at the Association of International Certified Professional Accountants commented: “Trust and reputation, supported by a proportionate regulatory framework, are critical to an organisation’s long-term strategic success. These factors reinforce all manner of decisions from investment through to attracting customers and talent. For this reason corporate governance must seek to drive effective decision-making, underpinned by the right behaviours, which promotes better business, trusted by society. We look forward to working with the FRC, business and other stakeholder bodies in bringing this about and to a sharper focus on principles based regulation.”