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Income tax expenditures in the UK from 1979-90 are discussed.

The introduction of the profit-related pay (PRP) scheme under the 1987 Finance Act is hoped to eliminate the 'them and us' mentality among employers and employees and to forge a supportive relationship between the two parties in improving work practices, adopting new technology, and increasing productivity and worker efficiency. This view of the UK government, however, may be overly optimistic. There are indications that the PRP scheme may fail in getting rid of the 'them and us' attitudes. The government's taxation and employment policies, its seemingly pro-employee position, and the design of the scheme itself which aggravates the perceived inequalities between employers and employees all appear to work against the government's original intention for the PRP.

A CIMA-backed survey shows clearly that the huge changes in Southern African society are affecting management accountancy in the region. Robert Luther, Diane Bowler and Steve Longdon explore how the [...]

UK company directors often use a variety of tactics to sabotage or prevent a hostile takeover, usually in defense of their own position within the company which they feel will be jeopardized if another management team is used. These actions usually go against the City Code regarding takeovers and mergers, which specify directors should inform shareholders and take legal advise as to the best course of action for the firm, rather than for themselves. Shareholders are notified through a defence document, which can be drawn up deliberately to deter a merger or takeover.

Activity-based costing (ABC) has certain limitations that prevent its widespread use in financial reporting. Although ABC is widely acknowledged as a superior system for approximating long-run variable costs, its merits for external reporting have rarely been discussed by its proponents. A careful study of ABC reveals several factors hindering its application in accounts. Among these are ABC's non-recognition of facility-sustaining costs as product costs and its use of standard costs instead of actual costs. This costing system also allows the incorporation of opportunity costs into a company's product-costing model, a practice that would run counter to the definition of cost specified in the Statement of Standard Accounting Practices No. 9. The expense of implementing ABC or integrating it into the nominal ledger likewise acts as a barrier to its use in financial reporting.