To assist companies ahead of the reporting season the Financial Reporting Council (FRC) is writing to audit committee chairs in larger listed companies summarising key developments for 2015 annual reports.
Read or download the FRC Letter: Year end advice to preparers - larger listed companies (PDF)
The FRC encourages companies towards Clear & Concise reporting to ensure that their annual reports contain information that is relevant to investors. The letter identifies some of the key themes in corporate governance and reporting including considering the risks a company is exposed to and the importance of materiality assessments to underpin effective, tailored disclosure.
Stephen Haddrill, FRC chief executive, said:
“The quality of corporate reporting in the UK is generally of a high standard with companies taking steps to improve their annual reports. Being clear and concise in reporting is essential to such improvement, with companies focussing as far as possible on whether they are reporting matters that are genuinely material to investors.”
The FRC wrote to smaller listed and AIM quoted companies recently with year-end advice that is proportionate for those companies.
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.