FRC’s Corporate Reporting Review Annual Report emphasises areas of reporting focus for boards

News types: Corporate Reports

Published: 14 October 2014

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This year’s annual report of the Financial Reporting Council’s (FRC) Corporate Reporting Review (CRR) activities, has found that corporate reporting by large public companies is generally of a high standard, particularly among FTSE 350 companies. However, the FRC continues to see a higher proportion of poorer quality accounts produced by smaller listed and AIM quoted companies. In April 2014, it established a project to help improve the quality of reporting by smaller companies within the next three years. 

Read or download the Corporate Reporting Review: Annual Report 2014 (PDF) and the Technical Findings of the Conduct Committee’s Financial Reporting Review Panel 2013-2014 (PDF).


The FRC’s assessment is based on a review of 271 sets of reports and accounts in the year to 31 March 2014, of which 100 (37%) companies were approached for further information and explanation.

Richard Fleck, Chair of the FRC’s Financial Reporting Review Panel, said:

“We believe that trustworthy information engenders trustworthy behaviour, which in turn encourages investors to continue providing long term finance in capital markets.

The CRR Annual Report identifies the areas likely to pose future areas of challenge for preparers and where Finance Directors and Audit Committee members should have particular focus when planning their next report and accounts.

The Report supports the FRC’s wider initiative of promoting Clear & Concise reports that are relevant and useful to investors”


As well as summarising the FRC’s findings, this year the report emphasises areas of reporting focus for Boards in the next reporting season. These include the need to:

  • Assess the accounting effect of any changes in the structure of pension arrangements;

  • Analyse the effect of new accounting standards that will apply in the next few years, in important areas such as consolidation and revenue;

  • Take account of the FRC’s press notice on ‘Exceptional Items’;

  • Make a step change in the quality of disclosure of critical judgements and estimates around accounting policies;

  • Identify all the relevant intangible assets arising in recently acquired businesses.


The CRR report contributes to the FRC’s Clear & Concise initiative by providing examples of where it has challenged companies on whether their reports contained immaterial or unnecessary disclosures.

Notes to editors:

The FRC is responsible for promoting high quality corporate governance and reporting to foster investment.  We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.

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