Distributable reserves – determining realised profits for paying dividends
InsightsAudit & Governance ReformBEIS White Paper: dividends & corporate reporting
BEIS White Paper proposals: distributable reserves
The BEIS White Paper set out an array of proposals to reform different aspects of the corporate governance and audit regime. They include specific changes concerning compliance by companies with the distributable reserve and capital maintenance regime. This document explores the four key areas of the proposed change that relate to increased director accountability and how businesses should be preparing.
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Catriona Lawrie Partner - Head of Accounting Advisory Services
Audit & Governance Reform
The release of the BEIS White Paper in March 2021 signalled a once in a generation opportunity to transform audit and strengthen corporate governance in the UK. A consultation followed and the themes were echoed in the transcript of the Queen’s Speech in May 2022. We now await a draft Bill, expected in 2023/4. There is widespread consensus that the audit sector is not reaching its potential, and...