RegulationAccounting StandardsFRC sets out priorities for 2012

FRC sets out priorities for 2012

Main areas will include the introduction of a revised corporate governance code and new UK accounting framework UK GAAP by 2015

THE FINANCIAL Reporting Council (FRC) will introduce a revised Corporate Governance Code with effect from 1 October 2012, the audit watchdog announced in a draft priority and funding proposal.

The FRC also said it hopes to introduce new UK accounting framework UK GAAP by 2015.

In the proposals, released ahead of its annual open meeting later this month, the FRC announced that it would consult on the wording of possible changes to the Code during the first half of 2012, while also making changes to the Stewardship Code to improve the quality of investor engagement.

In relation to the review of reports and accounts, the FRC said it has concerns about the quality of the reports and accounts of some smaller listed and AIM-quoted companies and that review activity in 2012/13 will focus on commercial property, retail and support services.

“We will pay particular attention to the reports and accounts of companies whose shareholders have raised concerns about governance or where there have been specific complaints,” the FRC said.,

The FRC’s main objectives in 2012/13 also include making sure that the UK’s approach to corporate governance and reporting in terms of its codes and standards and oversight work is properly understood in the EU and internationally and pressing for EU policies on audit and governance to serve the interests of investors.

“The FRC has, together with BIS, formed a consultative European Issues Steering Group to co-ordinate influencing activities and approaches across the range of UK stakeholders,” the FRC said.

The FRC’s core operating budget for the upcoming financial year 2012/13 is estimated to be about 2.5% less than the 2011/12 budget forecast at £14.6m.

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