News January 2021 Joint regulators statement for companies, auditors and users of financial accounts

Joint regulators statement for companies, auditors and users of financial accounts

27 January 2021
The Financial Reporting Council (FRC) and the Financial Conduct Authority (FCA) have today published updated guidance for companies and auditors to ensure high quality financial information continues to flow to users to support decision-making.  
 
As the busiest period of the year for finalising company accounts approaches, remote working, travel restrictions, home schooling, staff sickness and the uncertain economic outlook continue to have a major impact on the preparation of financial accounts. 
 
Robust and efficient capital markets rely on high quality financial information and where necessary, the joint guidance encourages preparers and auditors to allow more time to publish their financial accounts, making use of available flexibilities. 
 
Along with these measures, the FRC and FCA strongly encourage investors, lenders and other users of financial statements to take into account the unique set of circumstances arising from Covid-19.
 
Recognising the heightened challenges in preparing and auditing financial information, the FRC and FCA encourages all stakeholders to re-familiarise themselves with these measures, to use them if appropriate, and to view such use as normal practice during this period of heightened challenges.
 
The FRC’s Executive Director of Regulatory Standards, Mark Babington said: 
 

As the busiest period of the year for the preparation and audit of financial accounts approaches, it is paramount that investors and users of financial information continue to receive high quality financial information.   
 
“While companies and auditors face increased challenges in preparing their accounts, the joint measures allow for additional time to ensure high quality reporting.
 
“Companies, auditors and investors should familiarise themselves with the latest guidance during these uncertain times to ensure they are managing reporting frameworks and stakeholder expectations appropriately.”   

The updated guidance is available here.
 
Notes to editors:
 
The FRC published consolidated Covid-19 guidance for companies and auditors on 04 December 2020.   
 

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William BoyackCommunications Manager