More than half of the companies whose reports and accounts have been reviewed by the Financial Reporting Council’s corporate reporting review (CRR) function have been flagged as having substantive issues. According to the FRC, 29 out of the 53 companies were questioned on matters of recognition, measurement and/or disclosure.
Among those companies affected are: Aggreko, Balfour Beatty, Bodycote, HSS Hire Group, Interserve, MetroBank, Moss Bros Group, Provident Financial Group and Prudential.
The CRR’s routine reviews generally cover all parts of companies’ reports and accounts over which the FRC’s conduct committee has statutory powers (that is, strategic reports, directors’ reports and accounts). Limited scope reviews arise for a number of reasons, including those conducted when company reports and accounts are selected for thematic review, and may include reviews that have been prompted by a complaint.
The FRC has a policy of not identifying those companies where the review has been prompted by a complaint but may ask a company to refer to its exchanges with CRR when the company makes a change to a significant aspect of its reporting in its next annual report and accounts in response to a review.