FRC flags topical reporting issues, including Brexit
A brief Financial Reporting Council letter to investors highlights recent changes in reporting with a view to encouraging investors to engage with the companies in which they invest.
The letter addresses Brexit, among other issues, and suggests that companies may be considering the risk and uncertainties associated with the UK’s renegotiation of its EU position and potential exit. If the board considers this to be a principal risk, it should be disclosed to shareholders.
Other topics covered by the letter include the overall aim of the annual report, enhanced reporting on risk and internal control (including the new viability statement), alternative performance measures, audit reporting, dividend disclosures, explanations of non-compliance with the UK Corporate Governance Code, the impact of new accounting standards and the FRC’s commitment to transparency.
The letter can be found here.