The FRC supports the publication of the Government’s call for evidence on the Non-Financial Reporting Review
News types: Consultation Announcement, Response
Published: 24 May 2023
The FRC welcomes the publication of the call for evidence on the Non-Financial Reporting Review, which will look at the framework behind non-financial reporting, and the wider legal landscape in which sustainability disclosures and other planned reforms will be situated. The review will also consider the thresholds used to determine which companies must comply with reporting obligations under the Companies Act 2006.
The FRC is supporting the Department for Business and Trade in performing the review and will have access to survey responses. The review will have a critical role in ensuring that that non-financial reporting supports the transition to a more sustainable economy. The review will underpin in the FRC’s commitment to setting high standards and ensure the market continues to operate to deliver confidence in the UK economy, and the UK’s international reputation and world-leader in finance and business.
The review is an opportunity for stakeholders to provide feedback on the UK’s non-financial reporting framework, including:
The FRC is supporting the Department for Business and Trade in performing the review and will have access to survey responses. The review will have a critical role in ensuring that that non-financial reporting supports the transition to a more sustainable economy. The review will underpin in the FRC’s commitment to setting high standards and ensure the market continues to operate to deliver confidence in the UK economy, and the UK’s international reputation and world-leader in finance and business.
The review is an opportunity for stakeholders to provide feedback on the UK’s non-financial reporting framework, including:
- Areas of reporting they find difficult, duplicative, or expensive to comply with;
- Suggestions on improvements or refinements to the UK’s framework covering what is required to be reported and by who;
- Areas of reporting that are particularly useful, either to support company or investor decision making, and/or to support public policy goals; and
- Feedback on potential changes to company law thresholds for the purposes of corporate reporting.
Whilst the call for evidence represents an open approach to receiving stakeholder feedback, the objective of the review process is to deliver a simplified reporting framework for UK companies. In turn, this will deliver more focussed, decision useful information to the market, to support effective capital allocation. A simplified framework will also provide a good foundation to introduce future changes to the framework, including standards issued by the ISSB.
The review will play a critical role in developing a focussed, modern reporting regime that enhances the UK’s global reputation for high reporting standards, supporting investment and growth, and makes it easier for companies to comply with their corporate reporting obligations, and for the information produced to be used by stakeholders.