Trade Investment Accountability and how Governments will legislate…

Following the Tesco Accounting scandal, a lack of consensus among the UK's major food retailers is detracting from efforts by the Financial Reporting Council (FRC) to improve the way that companies report complex supplier arrangements and will prolong the uneven disclosure of supplier income, according to a new report by Moody’s Investors Service - more here

NAM Implications:

• The combination of inconsistency and scale of payments involved means that governments will eventually legislate to optimise taxable income
• It is probable that such legislation will be conservative (small ‘c’), retrospective, i.e. paid after-the-event and based on measurable results,  the only certainty...
• In other words, all trade investment will specify KPIs, build in compliance, and payments will be withheld until auditable results are available

NAMs and their customers had best prepare for the inevitable…