The right stuff

The “war on woke” may be running out of steam—at least in investment circles.

The Financial Times reports that, although the anti-woke brigade may have “soured” sentiment towards ESG, behavioural scientists say there is something else going on.

Greg Davies, head of behavioural science at Oxford Risk, is quoted as saying that about 70% of the investor community is “willing to give up something to reflect their desire to do something in the world.” Let’s hear for it the investment Good Samaritans.

Revision time

It’s what you’ve all been waiting for: the Financial Reporting Council has revised its accounting reporting standards to provide, in its own words, “comprehensive improvements”.

Devotees won’t be surprised to hear that the biggest changes come to standards on leases and to that hoary old chestnut: revenue recognition.

“In response to stakeholder feedback,” the FRC says, revisions have been made to clarify that the “most significant leases are recognised on balance sheet”.

Mark Babington, director of regulatory standards at the FRC, says the changes should be a “net benefit to the UK”. That should have you all rushing to read the good news.

A much-needed nag

On the FRC, relatively new CEO Richard Moriarty told MPs today that he is “sheriff for only half the country…’, according to the Financial Times .

Moriarty was, of course, referring to the fact that he’s still waiting on shiny new powers long promised by government but singularly failing to turn up on its legislative agenda.

By this point, Moriarty should be running the Audit, Reporting and Governance Authority (ARGA), a new regulator on the cards since the CEO was knee-high to UK GAAP (at least, it seems that way).

No doubt MPs on the trade committee will heed his calls and write it up in a new report, but whether anyone is listening, this side of a general election, is anybody’s guess.

Warm words

It’s not news that divisions remain over climate policy but, across the Atlantic, the US Chamber of Commerce finds itself at odds with some of its own members, including those with some of the biggest balance sheets in the world.

US outlet E&E News reports that 37 members, including Microsoft, Pfizer and Meta, are now trying to persuade the chamber that its objection to climate policies is “hindering” corporate efforts to help slow rising temperatures.

Given the world-ending potential of climate change, this is no small issue. It must make for very interesting board meetings.

Splashing out

Changing chief executives is always a sensitive time. But it seems it might also be a time to be exploited. An Italian team of academics has looked at what happens to accounting when CEOs change.

It seems, at the time, accounting adjusts to take a ‘big bath’ on earnings, giving the new CEO a chance to point the finger at his or her departing predecessor.

The team reached this conclusion by looking at what happens if the old CEO remains on the board. Turns out, fewer companies take a bath.

So be warned, board members. Getting rid of the old and bringing in the new is likely to end in bath time.