RegulationAccounting StandardsAnnual reports must reflect economic uncertainty

Annual reports must reflect economic uncertainty

Directors must consider the risks faced by global economic uncertainty, says the FRC

ACCOUNTING’S WATCHDOG has warned directors that the must recognise the effect of global economic issues when producing their annual reports and accounts.

The Financial Reporting Council (FRC) has updated its guidance for the kind of risks that directors must consider when putting together their annual reports.

Companies’ exposure to country risk through the use of financial instruments; the impact of country-specific austerity measures; currency events; and providing enhanced disclosure post-balance sheet to avoid misleading investors have been highlighted by the regulator.

“Directors of companies in the UK are trying to assess the risks to their companies’ business models in difficult and rapidly changing economic conditions,” said FRC chief executive Stephen Haddrill (pictured).

“The FRC is committed to promoting market confidence in corporate reporting. It has published this guidance for Directors on the preparation of balanced and understandable disclosures that put their company’s position and prospects in context of the current market conditions.”

Related Articles

Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
Ex-RSM Tenon CEO fined; ex-FD and PwC face complaints over its accounting

Accounting Standards Ex-RSM Tenon CEO fined; ex-FD and PwC face complaints over its accounting

1y Kevin Reed, Writer
Sports Direct implements FRC corrections in annual reporting

Accounting Standards Sports Direct implements FRC corrections in annual reporting

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

Accounting Firms Watchdog launches audit investigation into Sports Direct

1y Stephanie Wix, Writer
Record fine for Deloitte and audit partner over Aero misconduct

Accounting Standards Record fine for Deloitte and audit partner over Aero misconduct

1y Stephanie Wix, Writer
Cashflow statement improvements targeted by watchdog

Accounting Standards Cashflow statement improvements targeted by watchdog

1y Stephanie Wix, Writer
FRC expects Brexit narrative within annual reports

Accounting Standards FRC expects Brexit narrative within annual reports

1y Stephanie Wix, Writer
FRC consults on approach to updating FRS 102 for changes in IFRS

Accounting Standards FRC consults on approach to updating FRS 102 for changes in IFRS

1y Richard Crump, Writer