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WEDNESDAY, FEBRUARY 18, 1987
FULL APPLICATION OF ACCOUNTS LAW LONG-TERM AIM
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IT REMAINS THE GOVERNMENT'S LONG-TERM OBJECTIVE TO APPLY TO ALL COMPANIES THE NEW SIX-MONTH TIME-LIMIT FOR THEIR ANNUAL ACCOUNTS WHEN IT IS PRACTICABLE, THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID TODAY (WEDNESDAY).
WINDING UP THE RESUMED DEBATE ON THE COMPANIES (AMENDMENT) BILL 1986 IN THE LEGISLATIVE COUNCIL, MR JACOBS SAID HE RECOGNISED THE PRACTICAL DIFFICULTIES THE ACCOUNTING PROFESSION MIGHT ENCOUNTER IF ALL COMPANIES WERE OBLIGED TO MOVE AT THIS STAGE TO A SIX-MONTH TIME-LIMIT.
+ I HAVE THEREFORE AGREED TO EXCLUDE PRIVATE COMPANIES -- WHICH ARE NOT PART OF GROUPS INCLUDING PUBLIC COMPANIES AND COMPANIES LIMITED BY GUARANTEE - FROM THIS LIMIT FOR THE TIME BEING,+ HE SAID.
HOWEVER, PRIVATE COMPANIES THAT WERE WITHIN GROUPS CONTAINING PUBLIC COMPANIES WOULD BE BOUND BY THE NEW TIME-LIMIT.
+ IF THEY WERE ALLOWED TO KEEP TO THE PRESENT TIME-SCALE OF NINE MONTHS THIS COULD LEAD TO SERIOUS DELAYS IN FINALISING GROUP CONSOLIDATED ACCOUNTS, MR JACOBS EXPLAINED.
+THE LONGER TIME-LIMIT, IF APPLIED IN RELATION TO PRIVATE COMPANIES IN A PUBLIC GROUP, MIGHT BE OPEN TO ABUSE, IN THAT DUBIOUS ACTIVITIES COULD BE SHIFTED OUT OF THE PUBLIC COMPANIES IN THE GROUP IN ORDER TO DELAY THEIR DISCOVERY BY AUDITORS.+
MR JACOBS THANKED THE HON PETER POON AND MEMBERS OF THAT AD HOC GROUP FOR THEIR SUPPORT AND CONSIDERATION GIVEN TO THE BILL.
AS REGARDS THE GROUP'S CONCERN ABOUT THE PROPOSED NEW POWERS OF INSPECTORS UNDER SECTION 1458, HE SAID THE INTEGRITY AND PROBITY OF THE INSPECTORS, WHO WOULD BE PERSONS OF CONSIDERABLE STANDING, BOTH WITHIN THEIR PROFESSION AND WITHIN THE COMMUNITY, WOULD PROVIDE THE BEST SAFEGUARD AGAINST ANY ABUSE OF POWER,
THE SECTION EMPOWERS AN INSPECTOR TO OBTAIN DOCUMENTS AND INFORMATION WITHOUT THE NECESSITY OF OBTAINING A COURT ORDER.
THE PROPOSED CENTRAL UNIT, CHARGED WITH DRAWING UP CLEAR TERMS OF REFERENCE FOR INVESTIGATIONS AND WITH MONITORING THE PROGRESS AND DIRECTION OF INSPECTORS, WOULD ALSO HELP KEEP THINGS ON THE RIGHT LINES AND ENSURE THAT COSTS DID NOT GET OUT OF CONTROL, HE ADDED.
/NOTING THE