FRC publishes Annual Review of Corporate Reporting
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Published: 30 September 2025
The Financial Reporting Council (FRC) today published its Annual Review of Corporate Reporting, showing that the quality of corporate reporting across FTSE 350 companies has been maintained during the 2024/25 monitoring cycle.
The Corporate Reporting Review (CRR) team found that a lower proportion of reviews resulted in queries being raised with companies compared to previous years, with overall restatements prompted by reviews falling compared to the previous three years. The number of restatements affecting profit has also reduced.
The review demonstrates the FRC's continued commitment to upholding high standards of corporate reporting, which are important, for maintaining investor confidence and supporting UK companies' access to the capital they need to scale and grow.
For the third consecutive year, impairment was the issue most frequently raised with companies, although no companies were required to restate their accounts for impairment matters. Cash flow statements and inconsistency of information between financial statements and other sections of the report and accounts continue to present challenges. The report notes that many common areas of challenge could be identified through sufficiently robust pre-issuance reviews, emphasising this remains a key expectation for companies' oversight processes.
There remains a quality gap between companies in the FTSE 350 and other companies, with the majority of restatements continuing to arise in companies outside the FTSE 350. The FRC is undertaking a thematic review focusing specifically on reporting by UK smaller listed companies.
For the 2025/26 reporting season, expectations remain consistent with recent years given stable reporting requirements and recurring themes. Companies are encouraged to focus on improving explanations of significant judgements and estimates, including disclosure of key inputs and assumptions.
Proportionality and materiality are carefully considered at every stage of the FRC’s review work. We are mindful of our duties to support UK economic growth and protect stakeholders in the public interest, by promoting high standards in corporate reporting while avoiding disproportionate impact on those we regulate.