The Companies Act 2006 does not include specific requirements for finance secured through reverse factoring. However, section 393 places a requirement on directors that the accounts must provide a true and fair view of the assets, liabilities, financial position and profit or loss of a company or group. This places a responsibility to provide such information as is necessary to ensure that requirement is met, including where reverse factoring is used in supply chain arrangements.<\/p>
<\/p>
The correct accounting treatment for reverse factoring is dependent on the terms and conditions of the factoring arrangement in place. The International Financial Reporting Standards (IFRS) Interpretations Committee and the Financial Reporting Council (FRC) have both issued guidance addressing the accounting standards requirements for reverse factoring, including guidance on additional disclosures. Copies of the guidance are attached below. The International Accounting Standards Board is also considering whether to add a project on reverse factoring to its agenda, as part of their responsibility for issuing International Financial Reporting Standards.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4336", "label" : {"_value" : "Biography information for Lord Callanan"} } , "answeringMemberPrinted" : {"_value" : "Lord Callanan"} , "attachment" : [{"_about" : "http://data.parliament.uk/resources/1304420/answer/attachment/1", "fileName" : {"_value" : "supply-chain-financing-arrangements-reverse-factoring-december-2020.pdf"} , "title" : "Supply Chain Financing Arrangements\u2014Reverse Factor"} , {"_about" : "http://data.parliament.uk/resources/1304420/answer/attachment/2", "fileName" : {"_value" : "Disclosures-on-the-sources-and-uses-of-cash-Final.pdf"} , "title" : "Disclosures on the sources and uses of cash"} ], "dateOfAnswer" : {"_value" : "2021-03-31", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-03-31T13:57:56.25Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "201"} , "answeringDeptShortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "answeringDeptSortName" : {"_value" : "Business, Energy and Industrial Strategy"} , "date" : {"_value" : "2021-03-19", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Company Accounts"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask Her Majesty's Government which (1) sections of the Companies Act 2006, or (2) regulations made under that Act, outline (a) the accounting treatment, and (b) the disclosure requirements, for finance secured through reverse factoring.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4885", "label" : {"_value" : "Biography information for Lord Sikka"} } , "tablingMemberPrinted" : [{"_value" : "Lord Sikka"} ], "uin" : "HL14423"} , {"_about" : "http://data.parliament.uk/resources/1086396", "AnsweringBody" : [{"_value" : "Cabinet Office"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1086396/answer", "answerText" : {"_value" : "
The Coalition Government took the decision not to implement the 2009 legislation, as it was not deemed to be workable<\/p>
During the passage of the 2009 Act, the Electoral Commission raised concerns about the legislation (further to Official Report, House of Commons, 15 October 2009, Col. 998W), and in 2013, the Electoral Commission also flagged issues about the tax status declaration requirements. The Labour Government conceded that the provisions could not be commenced at that time \u201cdue to their complex nature\u201d (as outlined in the answer of Official Report, House of Commons, 10 March 2010, Col. 5MC)<\/p>
The UK has a robust legal framework in place that bans foreign donations.<\/p>
There is a long-standing principle \u2013 as originally recommended by the Committee on Standards in Public Life in 1998 \u2013 that permissible donors are those on the UK electoral register, and this includes UK citizens who are registered overseas electors. Companies wishing to make donations must be UK-registered and carrying on business in the UK<\/p>
If a British citizen is able to vote in an election for a political party, they should also be able to donate to that political party, subject to the requirements for transparency on donations. Supporting a political party is part of the democratic process, and is an expression of freedom of association<\/p>
Since the adoption of universal suffrage, taxation has never been the basis of enfranchisement in the UK. Those who do not pay income tax, such as those earning less than the tax-free personal allowance, rightly remain entitled to vote. Similarly, full-time students are legally exempt from paying council tax, but still have the right to vote in local elections<\/p>
More broadly, since 2010, the Government has taken action to sanction and deter those involved in offshore evasion, including creating a new criminal offence for serious offshore evasion, and introducing penalties for those who deliberately help others to evade tax offshore. The Government has introduced over 100 new measures to tackle tax avoidance, evasion and non-compliance.<\/p>"}
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], "questionText" : "To ask Her Majesty's Government what plans they have to restrict donations to political parties from people living in tax havens and paying lower rates of tax than donors to political parties who pay full rates of tax.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
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