Thought leadership on corporate reporting
Published: 18 September 2023
2 minute read
A matter of principles: The Future of Corporate Reporting
The FRC’s Future of Corporate Reporting project aimed to challenge existing thinking about corporate reporting and consider how companies should better meet the information needs of shareholders and other stakeholders.
In October 2020 we published a Discussion Paper, A matter of principles: The Future of Corporate Reporting. The paper sets out a bold vision for a new principles-based framework for corporate reporting as a whole. The proposals were designed to be tested with stakeholders and stimulate the conversation about what the future of corporate reporting should look like.
The comment period for the paper closed on 5 February 2021.
Alongside the paper, we have also published:
- Understanding research findings and evidence on corporate reporting: An independent literature review, commissioned by the FRC and conducted by the University of Bristol and the University of Exeter; and
- Future of Corporate Reporting: Conclusions from an online survey of FRC stakeholders, summarising the findings of an online survey carried out as part of the project.
Both these sources informed the development of the proposals presented in the Discussion Paper.
The FRC published a feedback statement on the paper on 30 July 2021.
Thinking about disclosures in a broader context
In October 2012, the FRC published a discussion paper Thinking about disclosures in a broader context. The overall aim of the paper was to improve the quality of financial reporting disclosures.
The paper sets out a roadmap for a disclosure framework that considers disclosures in the financial report as a whole. The paper explores themes for disclosures; the boundaries of financial reporting including placement criteria; communication principles and calls for a more robust application of materiality.
The consultation period for the discussion paper closed on 31 January 2013. The responses to the discussion paper are available in the consultation linked above. In July 2013, the FRC published a feedback statement on the 2013 consultation setting out a series of calls to action, several of which are now being considered by the IASB as part of its Disclosure Initiative project.
Clear and Concise
The FRC’s work on Clear and Concise aims to ensure that annual reports provide relevant information. We believe that this is a key step towards high quality corporate reporting.
We recognise that there is increasing regulatory pressure being placed upon companies. With that in mind, through our activities, we aim to address some of the common criticisms about the quality of communication in annual reports such as the use of boilerplate or disclosure of immaterial information.
As part of this project, the FRC published a number of papers.
| Name | Clear & Concise: the journey to high quality corporate reporting |
|---|---|
| Publication date | 30 August 2015 |
| Type | Statement |
| Format | PDF, 107.9 KB |
| Name | Clear & Concise event: Shaping the future of financial and non-financial reporting in Europe |
| Publication date | 20 January 2015 |
| Type | Presentation |
| Format | PDF, 2.9 MB |
| Name | Clear & Concise: Developments in Narrative Reporting |
| Publication date | 17 December 2015 |
| Type | Report |
| Format | PDF, 1.7 MB |
| Name | Cutting Clutter: Combating clutter in annual reports |
| Publication date | 1 April 2011 |
| Format | PDF, 465.2 KB |