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For
Immediate Release: Friday 21 November 2003
IMA LAUNCHES ITS STATEMENT OF RECOMMENDED PRACTICE (SORP)
FOR
FINANCIAL STATEMENTS OF AUTHORISED FUNDS
The IMA today
announced the launch of its first Statement of Recommended
Practice (SORP) for authorised funds. The SORP sets out
recommendations for the preparation of financial statements
of all authorised funds and will be implemented from 1
December 2003.
As proposed, the
existing combined SORP has been merged and particular
changes have been made to the disclosure of derivatives, the
presentation of the portfolio statement and accounting for
securities issued at a premium.
Julie Patterson,
Director of Regulation, Operations and Tax commented:
“ We are pleased to have produced in short order a
combined and updated SORP. Its use will ensure that all
investors and financial advisers will have access to sound
and consistently presented information.
Thanks are due to the members of the SORP Working Party,
to all those who provided comments on the Exposure Draft and
to the Accounting Standards Board for its support.”
The IMA will
regularly review the SORP, particularly following the
adoption of the International Financial Reporting Standards
(IFRS)*, which will come into effect on 1 January 2005.
IMA’s Statement
of Recommended Practice for Financial Statements of
Authorised Funds is
attached.
-Ends-
For further
information please contact:
Julie Patterson,
Director of Regulation, Operation and Tax, IMA
020 7831 0898
Helen Stephenson,
Communications Officer, IMA
020 7831 0898
Davood Eslami,
Secretary to the SORP Working Party, IMA
020
7831 0898
Notes to
editors:
1. * With effect
from 1 January 2005, the EU regulations require listed
companies to prepare their consolidated statements in
accordance with adopted IFRS. The DTI announced in June 2003
that any company subject to the Companies Act reporting
regime can also adopt the provisions of IFRS should they
wish. This does not include AUTS or OEICs because although
OEICs are corporate in nature, they are not bound by the
Companies Act reporting regime. Consequently, as the rules
stand, AUTs and OEICs cannot adopt IFRS.
It is expected that in due course the requirements will
change and that AUTs and OEICs will have to report in
accordance with IFRS, at which point the contents of the
SORP will be reviewed and amended accordingly. However,
there is currently no definitive timetable in place as to
when these changes will take place.
2. IMA took over
the role of SORP making body from the Financial Services
Authority in November 2002.
3. SORPs
recommend accounting practice for financial statements and
cannot override accounting standards. However, where choices
are available they can recommend particular accounting
treatments with the aim of narrowing differences between
comparable entities. This SORP will supersede the two
existing SORPs for authorised unit trusts and OEICs.
4. Hard copies of
the IMA’s SORP can be obtained by contacting Selina Staines
at the IMA on 020 7831 0898.
5. The Investment
Management Association (IMA) is the trade body for the UK
investment management industry. It was formed in February
2002 as a result of a merger between the Fund Managers’
Association (FMA) and the Association of Unit Trusts and
Investment Funds (AUTIF). IMA’s members provide investment
management services to institutions (for example, life
assurance companies, pension funds, and individual
companies) and to private investors, through individual fund
management agreements and pooled products such as authorised
investment funds. Between them, IMA’s members manage over
£2,000 billion worth of assets. More information can be
found on
www.investmentuk.org
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
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