The UK Financial Reporting Council (FRC) plans
to focus on improving codes and standards, international influence,
strengthening conduct work and enhancing and overhauling its
disciplinary scheme in the next 12 months.

FRC chairman Baroness Sarah Hogg said the key
challenge for the FRC in the coming year will be to “work with
investors, business, the professions and other regulators”,
identifying and addressing “the challenges facing those responsible
for corporate governance and reporting in the UK”.

Hogg made the comments in the regulators
2011/2012 annual report, which among over things highlights its
work on the UK Corporate Governance and Stewardship codes and
reform of the Council itself.

In the annual report, Hogg states that in the
first assessment of the implementation of the two codes, the FRC
has “proposed key improvements in the way companies report on the
key strategic risks facing their businesses” and supported the
Sharman Panel of Inquiry “to consider going concern and liquidity

The FRC has also reviewed 300 sets of accounts
in the past fiscal year as way to assess the quality of corporate
reporting in the UK, as well as monitoring the quality of 108
audits and completing eight firm wide inspections of major

On its recent structural reform, Hogg said the
creation of internal councils would ensure it remained “an
accountable and transparent standard setter.”

“We have created two Board Committees, on
Codes and Standards and Conduct, to co-ordinate the work of the
different parts of the organisation, drives forward our
international work and takes a number of supervisory
decisions. We have also created three expert Councils to
advise on accounting, audit & assurance and actuarial issues,”
Hogg explained.

In terms of its financials, the FRC came in
under budget, with £21.2m ($34m) total expenditure. This comprised
£15m core operating costs, £2.4m audit inspection costs and £3.8m
accountancy and actuarial disciplinary case costs.