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

To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 16 September (HL7849), whether (1) the Secretary of State, (2) the UK Endorsement Board, (3) the International Accounting Standards Board, or (4) the auditors and directors for not using the true and fair view override, would be responsible for defects in the UK-adopted international accounting standards.

The act of bringing into UK law all existing EU-adopted international accounting standards at the end of the transition period has been approved by Parliament.

Thereafter, my Rt. Hon. Friend the Secretary of State will be responsible for ensuring that any international accounting standards adopted in the UK after the end of the transition period meet the criteria set out in regulations 7 and 8 of the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019, using the powers granted to the Secretary of State under regulation 6 of those regulations. The UK Accounting Standards Endorsement Board will take on this responsibility once endorsement and adoption functions have been delegated to it under regulation 13 of the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019. However, the Secretary of State will retain the ability to revoke the delegation if it is deemed necessary.

Auditors and directors will remain responsible for ensuring that an individual company’s accounts give a true and fair view of the company’s assets, liabilities, financial position and profit or loss.