• Register
Return to: Home > News > Quality of corporate reporting in the UK could do with improvement, the regulator has warned

Quality of corporate reporting in the UK could do with improvement, the regulator has warned

The UK Financial Reporting Council (FRC) Annual Review of Corporate Reporting has found that the standard remains good in general but the quality of corporate reporting could be higher.

The report found improvements to strategic reports, for example alternate payment measures (APMs) but the financial statement findings are consistent with last year as further improvement is needed in the clarity and completeness of explanations provided by companies. The most raised issues were judgements and estimates, the strategic report, and accounting policies.

There are concerns regarding a lack of trust in big business and that companies need to take account of wider stakeholder interests. The review stated that companies should pay particular attention to four areas;

  • explaining and quantifying judgements and estimates,
  • providing a balanced assessment of performance and prospects that covers both positive and negative aspects
  • ensuring the links between the financial statements and discussions of strategy, performance including Key Performance Indicators (“KPIs”), financial position and cash flows, including the use of APMs, are clear
  • providing company-specific information to understand the business, its performance and prospects.

The FRC is considering whether assessments of the quality of disclosures could be incorporated into their monitoring business where there are concerns or apparent inconsistencies. Regarding how the annual report increases in size, the report suggests that regulators such as the FRC should ensure that the benefits of any new requirements justify any downside such as additional length.

The report was assessed primarily through 20 FRC cases opened in the year to 31 March 2017.

Report can be found here.

Top Content

    2018 Digital Accountancy forum and awards: Digital transformation

    The Accountant presents highlights from The Digital Accountancy Forum & Awards 2018 panel discussions

    read more

    2018 Digital Accountancy Forum and Awards: Tech deep dive

    The second panel session of the day saw experts discuss how new technologies should not just be seen as a threat, and could be used to improve accounting.

    read more

    Digital Accountancy Forum and Awards: The power of data

    The third panel discussion of the day saw panellists discuss some of the worries their clients have had, how to overcome them, and how data and technology are providing real business opportunities.

    read more

    Digital Accountancy Forum and Awards: The next generation

    With young people more mobile, and technology changing the industry rapidly, the final panel session of the Digital Accountancy Forum looked at how firms would need to adapt to the new reality

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.