The Institute of Chartered Accountants in England and Wales (ICAEW) has reminded company boards to explain financial and operational risks in their corporate reports.
ICAEW’s financial reporting faculty head Nigel Sleigh-Johnson said in the current context where business face tougher conditions, “the need for openness and forward-looking management commentary is greater than ever”.
Sleigh-Johnson warned that boards have a responsibility to ensure that interim reports reflect the activities, performance and position of the company over the reporting period.
“This means making clear the nature and scope of exposure to country, currency and commodity risks and avoid ‘boilerplate’ disclosures,” Sleigh-Johson said.
Related
ICAEW, which has issued new guidance on risk disclosure, said it is also an opportunity to convey how risks are being mitigated.