FRC warns company accounts under challenge
The corporate watchdog has issued a warning for companies to be diligent when preparing company accounts
The
Financial
Reporting Council (FRC) has published a four-page list of factors today
aimed at the boards and management of the
FTSE
350, in the belief that risks to confidence in corporate reporting and
governance are higher than they have been for some years.
‘Corporate reporting and auditing will be particularly challenging this year
and needs to be matched by increased diligence and then clarity as to the basis
on which judgements have been exercised,’ Paul Boyle, FRC chief executive, said.
The FRC believes existing accounting standards, if applied with appropriate
professional judgement, continue to be ‘fit-for-purpose’.
However, FRC said some companies might find their precise circumstances were
not expressly provided for in standards which are predominantly
principles-based.