News May 2019 Consultation on revising Standards for Investment Reporting

Consultation on revising Standards for Investment Reporting

01 May 2019
The Financial Reporting Council (FRC) is today launching a consultation on revisions to the Standards for Investment Reporting (SIRs) 1000-5000 and on an exposure draft for a new SIR 6000 dealing with Quantified Financial Benefits Statements (PDF).
The SIRs set requirements and provide guidance for Reporting Accountants (RAs) carrying out reporting engagements on UK investment circulars. These engagements include private reporting, for example on working capital statements, as well as public reporting engagements on published financial information. SIR 1000 provides basic principles and procedures for all relevant engagements, and SIRs 2000-6000 provide additional principles and procedures for specific types of public reporting. Feedback and stakeholder outreach confirms that the work done by RAs plays a vital part in the effective functioning of UK capital markets transactions, and new EU wide Prospectus Rules effective from July 2019 mean they need to be updated.
The work carried out by RAs is often closely related to the audit of financial statements, but has a specific purpose. The SIRs therefore exist to provide clarity about the expectations on those carrying out the work, and to help ensure consistent high quality work is performed.
The FRC encourages feedback on all aspects of the consultation, but is particularly interested in hearing whether the proposed revisions provide a sound framework for the work carried out by RAs and meets stakeholder expectations, including whether the current format of reporting is sufficiently transparent and informative about the opinions being given.
Our review anticipates changes in EU Rules, with a new Prospectus Regulation ((EU) 2017/1129) being adopted on 14 June 2017 and due to be fully in force within the EU by July 2019.  This means that references to specific rules within the SIRs will need to be revised when the implementation of new rules in the UK is finalised.

Comments in writing on the consultation are due by 5pm on Friday, 26th July 2019 and should be sent to:

James Ferris
Project Director
Financial Reporting Council