Question of ethics

Q I see that the new accounts rules enable the Law Society to make guidelines on accounting procedures which firms will be expected to follow.

Does this include the interim guidance on the treatment of standard monthly payments from the Legal Services Commission which came out with the April edition of Dispatch?

A No.

The Society has published guidelines under r.6(B) of the Accountant's Report Rules 1991 and under r.29 of the Solicitors' Accounts Rules 1998.

The latter guidelines are set out in app 3 of the rules.

The guidelines to the rules of 1991 appear in Professional Standards Bulletin 16.

The reporting accountant does not carry out a detailed check for compliance, but certainly has a duty to report on any substantial departures from the guidelines which he or she discovered while carrying out work in preparation of his or her report.

The interim guidance on standard monthly payments is something quite different.

It reflects our current thinking on the accounting and VAT implications of these new payments.

Reporting accountants will wish to take the guidance into account when they start preparing their reports.

Aide memoirel The Establishment of Lawyers Directive 98/5/EC was implemented in England and Wales on 22 May 2000.

Lawyers from other EU states who are EU nationals and established in the UK have to register with one of the UK Law Societies or Bars.

Lawyers already practising in the UK have until 21 November 2000 to make their applications, unless they wish to take advantage of their new rights under the Directive at an earlier date.

l Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch;tel: 020 7242 1222.