The Financial Reporting Review Panel has highlighted potential reporting
issues for companies in the worsening economic climate.
In a report based on the assessment of 300 company accounts, 138 of which
were contacted by the panel which sought further information or explanation on
various accounting items.
The panel has also advised company directors to be mindful of subsequent
changes in accounting.
Sources of uncertainty affecting management’s estimates, revenue recognition
criteria and relationships with special purpose entities have been highlighted
as areas to note.
Panel chairman Bill Knight said that UK company directors are known for their
compliance with standards, and the report has been designed to address areas
more sensitive to change.
‘The panel is less likely to question directors whose business model is
clear, who avoid boiler-plate descriptions and who are open about the specific
risks and uncertainties that may challenge their business in the foreseeable
future,’ said Knight.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.