Smith said: 'An objective, non-partisan analysis of the detailed figures of the BBC's financial position is essential before the Government reaches final conclusions on the Davies report.'
'This is why I have adopted now one of the recommendations of the Davies Panel and I am today announcing the appointment of Pannell Kerr Forster to carry out a rigorous and wide-ranging study of the BBC's financial projections.'
'This study will give us the financial information we need to reach a decision on the appropriate level of funding for the BBC up to 2006.'
The study will examine the latest information available and the areas that the Davies Panel could not assess through either time constraints or lack of access to detail.
Areas that Pannell Kerr Forster will look at include:
how the BBC can meet increasing costs through improved licence fee collection,efficiency savings and effective management of assets and growth in commercial income and the BBC's own assessment of the cost of its future service plans;
additional revenue or savings that could be generated following recommendations from the Davies Panel.
A summary of Pannell Kerr Forster's findings will be published when the Government's decisions on the Davies recommendations are announced.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago