• Register
Return to: Home > News > UK’s FRC provides advice to companies and auditors on coronavirus risk disclosures

UK’s FRC provides advice to companies and auditors on coronavirus risk disclosures

The UK’s Financial Reporting Council (FRC) has published guidance on disclosures of risks and other reporting consequences arising from the spread of coronavirus (COVID-19).

The regulator is also discussing with audit firms whether the virus affects their ability to review component audits in China and the consequences to delivering timely audit opinions.

The FRC has advised companies to consider what disclosures they might need to include in their year-end accounts, which will be relevant for companies either operating in or having close trading associations with China.

The regulator noted that companies which might not have a presence in China but have global supply chains dependent on Chinese-manufactured goods will need to consider their disclosures if their business faces possible disruption.

Discussions are currently taking place between the FRC and audit firms to assess the impact on their audits of UK listed groups with Chinese subsidiaries.

A spokesperson for the FRC said: “Given the potential for rapid spreading of the virus, required disclosures will likely change over time as more information about the epidemic emerges.

 “Companies will need to monitor developments and ensure they are providing up-to-date and meaningful disclosures to their shareholders when preparing their year-end reports.”

a spokesperson for EY UK said: "EY is closely monitoring the potential impact of coronavirus on the capital markets. We are engaged in dialogue with the relevant regulators, companies we audit, and our EY teams as necessary. Where practical, we are making alternative arrangements to complete our audit work in impacted countries."

Top Content

    HONG KONG NATIONALS: UNDERSTANDING VISA AND TAX WHEN MOVING TO THE UK

    Over 2 million Hong Kongers learned recently that they may soon be offered a route to UK citizenship following China’s introduction at the end of June of its controversial Security Law in the territory.

    read more

    SASB IMPLEMENTATION SERIES: COMMUNICATING ESG TO MAINSTREAM INVESTORS

    As part of a series of webinars, the Sustainability Accounting Standards Board (SASB) took a closer look at how to communicate ESG initiatives and progress to mainstream investors

    read more

    REPORTING AND COMPLIANCE: WHY WE NEED A DATA REVOLUTION

    Commerce no longer adheres to national boundaries: the largest international organisations to the smallest businesses operate in a global market. However, rules for corporate reporting and compliance do adhere to borders, write IMA’s Jeff Thomson and Liv A Watson

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    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.