The Institute of Chartered Accountants in
England and Wales (ICAEW) has reminded company boards to
explain financial and operational risks in their corporate

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.

ICAEW, which has issued new guidance on risk
disclosure, said it is also an opportunity to convey how risks are
being mitigated.