The Financial Reporting Review Panel (“the Panel”) today published its activity report covering the year to 31 March 2007.

• The Panel reviewed 311 sets of accounts 
  
  
•  266 were selected by the Panel and 45 were reviewed as a result of complaints, referrals or press comment 
  
  
• 135 companies were approached for further information 
  
  
• 94 companies undertook to reflect the Panel’s comments in future accounts
  

The 311 accounts reviewed were drawn from the full range of companies within the Panel’s remit. 227 were prepared under IFRS and 84 under UK GAAP. The report completes the Panel’s findings from its review of first-time implementation of IFRS.

The Panel found a good level of compliance overall with the international accounting requirements but identified a number of areas where companies could improve the quality of their future financial reporting. These are set out in the report. These points may be of particular help to boards of AIM-quoted companies, many of which are now in the process of preparing their first annual accounts under IFRS.
Responses to the Panel’s letters of enquiry were generally well considered and reflected the investment companies had made in considering the transition to a new reporting framework.

Commenting on the findings, Bill Knight, Chairman of the Panel, said: “It is important that companies comply with accounting standards. The majority work hard to do so and our aim is to help.”

1. The Financial Reporting Review Panel (FRRP) is part of the Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. Its functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy & Actuarial Discipline Board) and by the Council. The Committee on Corporate Governance, whose members are drawn from the Council, assists it in its work on corporate governance. 
2. The role of the Panel is to examine the annual accounts of public and large private companies to see whether they comply with the requirements of the Companies Act 1985 (‘the Act’), including applicable accounting standards. Following implementation of the Accounting Regulation (EC) No. 1606/2002, this may mean compliance with UK or International Financial Reporting Standards. 
3. Where breaches of the Act are discovered the Panel seeks to take corrective action that is proportionate to the nature and effect of the defects, taking account of market and user needs. Where a company’s accounts are defective in a material respect the Panel will, wherever possible, try to secure their revision by voluntary means, but if this approach fails the Panel is empowered to make an application to the court under section 245B of the Companies Act 1985 for an order for revision. To date no court applications have been made. 
4. The Chairman of the Panel is Bill Knight and the Deputy Chairman, Ian Brindle. There are currently 29 other Panel members drawn from a broad spectrum of commerce and the professions. Individual cases are normally dealt with by specially constituted Groups of five or more members. 
5. All Press enquiries and consultation responses should be directed to: Erica Mellows on tel: 020 7492 2460 or email: e.mellows@frc-frrp.org.uk.