BusinessCompany NewsIT, property and media accounts face FRC scrutiny

IT, property and media accounts face FRC scrutiny

Financial Reporting Review Panel to focus on industries that rely on discretionary spend

Company accounts in the commercial property, media and Information Technology
industries are set to face greater scrutiny over the next two years, the
Financial Reporting Council has announced in a review of its activity.

Advertising and recruitment companies will also be examined more closely, the
UK’s financial corporate reporting watchdog, also said.

The Financial Reporting Review Panel said it will focus on sectors ‘that rely
heavily on discretionary spend and which might be stretched in the short term.’

In the past two years, the FRC has focused on banking, house-builders and
travel and leisure.

Bill Knight, chairman of the panel said: ‘Companies who are seeing their
business models develop to meet the challenges of the recession will need to
reconsider their revenue recognition policies to ensure that they still reflect
their business activities.’

The Panel will pay particular attention to accounts of companies which appear
to apply “aggressive” policies compared with their peers, Knight added.

Related Articles

Sports Direct implements FRC corrections in annual reporting

Accounting Standards Sports Direct implements FRC corrections in annual reporting

1y Stephanie Wix, Writer
CIIA appoints ex-FRC chief Paul Boyle as president

Company News CIIA appoints ex-FRC chief Paul Boyle as president

1y Stephanie Wix, Writer
Watchdog launches audit investigation into Sports Direct

Accounting Firms Watchdog launches audit investigation into Sports Direct

1y Stephanie Wix, Writer
FRC scraps investigation into former Tesco CFO

Company News FRC scraps investigation into former Tesco CFO

1y Richard Crump, Writer
FRC to probe Grant Thornton’s AssetCo audit work

Accounting Firms FRC to probe Grant Thornton’s AssetCo audit work

3y Naomi Rainey, Writer
KPMG faces investigation over Co-op Bank audit

Audit KPMG faces investigation over Co-op Bank audit

4y Richard Crump, Writer
FRC launches investigation into jailed Torex Retail directors

Company News FRC launches investigation into jailed Torex Retail directors

4y Rachael Singh, Writer
FRC inspecting Co-op Bank's 2012 accounts

Company News FRC inspecting Co-op Bank's 2012 accounts

4y Richard Crump, Writer