ADVANCES IN ACCOUNTING

Advances in Accounting

Table of Contents

Chapter 1: Introduction3

Background of RDR3

Background of Aviva3

Analyst's Report5

Objectives of the project6

Research Question7

Methodology8

Literature Selection Criteria8

Search Technique9

Chapter 2: Theories involved11

Costs of Regulation15

Chapter 3Practice: Industry regulation17

Aviva and its competitors18

Aviva PLC20

Current and Future Developments21

Structure21

Recent Developments21

Financial Profile22

Sales22

Profits22

Employees22

Balance Sheet/Ratios23

Strengths, Weaknesses, Opportunities and Threats23

Strengths23

Weaknesses24

Opportunities24

Threats25

Chapter 4Application of theory to practice27

The impact on IFAs30

Chapter 5 Conclusions and recommendations32

References37

Chapter 1: Introduction

Background of RDR

Developments in financial reporting in recent years include, but are by no means limited to, significant changes in financial reporting standards. Many changes in financial reporting have arisen from the need to provide users with appropriate information about increasingly complex businesses, transactions and instruments. Also, as part of the move towards international convergence in financial reporting standards, the world's two leading standard setters are together looking at the conceptual framework underpinning standards. This may lead to further changes in the fundamentals of financial reporting, including changing the relative emphases on different attributes of financial information(Hoenig 2006). 

Background of Aviva

Aviva can trace its history back to the formation of the Norwich Union by Thomas Bignold in 1797 and the Commercial Union in 1861.It was created by a merger of Norwich Union and CGU plc (itself created by the 1998 merger of Commercial Union and General Accident ) in 2000. The Aviva name was adopted in July 2002.

During March 2005 Aviva plc acquired the RAC plc breakdown recovery operation for around £1.1 billion. In July 2006, Aviva greatly increased its presence in the United States by acquiring AmerUs Group, a financial services company founded in 1896. Aviva Corp. is not affiliated with Aviva Energy Corp., an energy consulting firm based in the U.S.

The Company continued to use the Norwich Union name as a trading name in the UK until 1 June 2009 when it became formally known as Aviva within the United Kingdom. The launch was supported by a £9 million advertising campaign to promote the rebranding (one of the most expensive ever in the UK insurance field), with the participation of celebrities including Bruce Willis and Alice Cooper. In January 2010, the process of Aviva's rebrand was formally recognised when they appeared on the shortlist of the Transform Awards for rebranding and brand transformation in a number of categories In June 2009 the Company decided to dispose of Navigator, its Australian wealth management business, to National Australia Bank for A$825 million (£401 million). In October 2009 the company decided to focus on its commercial insurance sector and demonstrate its commitment to brokers by launching their 'find a broker' facility, using the British Insurance Brokers Association search engine(Lindgren Garcia Saal 2006). To help them with this endeavour, Paul Whitehouse was recruited as played the part of a successful hairdresser running three salons. The message of the campaign focused on business insurance through insurance brokers. The closing line of the campaign was "We're in business to keep you in business".

Analyst's Report

Auditing standards and practice have been and are being driven to some extent by these changes, as well as by pressures for international convergence which mirror those in financial ...