Scope of this document
1.1 On 3 May 2006, Ofcom published a consultation document setting out proposals in respect of British Telecommunications plc (“BT”)’s regulatory financial reporting requirements (the “May Consultation”). The aim of this consultation was to consider the objectives of the regulatory reporting regime and take a fresh look at how these objectives can be met most effectively.
1.2 The May Consultation document represented the first stage of a two stage consultation process and set out :
- Proposals for changes to be reflected in BT’s 2005/06 Regulatory Financial Statements, including amendments required following publication of the 2004/05 statements and changes to the audit requirements. Responses to these proposals were required by 14 June 2006; and
- The framework for a principles-based review of the reporting framework as the first stage of the two stage consultation process. Responses to these proposals were required by 12 July 2006 and will be taken into account by Ofcom in developing proposals to be set out in a further consultation on its review of the reporting framework before the end of this year.
1.3 This statement considers only the proposals for changes to be reflected in BT’s 2005/06 financial statements.
1.4 This document sets out Ofcom’s final decision on the modifications to certain of regulatory financial reporting and audit requirements on BT as set out in “The regulatory financial reporting obligations on BT and Kingston Communications” issued in July 2004 (the “July 2004 Statement”).