RegulationCorporate GovernanceFRC and French counterpart aim to trim financial notes

FRC and French counterpart aim to trim financial notes

European reporting regulators publish joint discussion paper towards a disclosure framework for financial notes

FRC and French counterpart aim to trim financial notes

THE FRC and its French counterpart, the Autorité des Normes Comptables (ANC), have published a discussion paper aimed at addressing the bloated nature of notes to financial statements.

As part of a joint project with the European Financial Reporting Advisory Group (EFRAG), the discussion paper sets out some key principles that EFRAG, the ANC and the FRC consider essential to design of an effective disclosure framework.

Notes to the financial statements have ballooned over the years as the IASB has added existing disclosure requirements in IFRS to support more transparency. As a result, the notes that accompany financial statements have become so extensive that investors and creditors can no longer ‘see the wood for the trees’, the FRC said.

There is a risk that the notes to the financial statements have become a real burden, while it is unclear that they help users understand the numbers in the financial statements, the regulator added.

“Efforts to be undertaken are not limited to IFRS, as shows the cooperation EFRAG, ANC and FRC have had with the FASB who have been undertaking a similar project. It is hoped that the discussion paper leads to a constructive debate within Europe and elsewhere,” the FRC said.

The discussion paper is open for comment until 31 December 2012.

Related Articles

Solvency and liquidity queries tackled in FRC going concern guidance

Accounting Standards Solvency and liquidity queries tackled in FRC going concern guidance

2y Calum Fuller, Reporter
Audit firm governance code to champion quality and transparency

Accounting Firms Audit firm governance code to champion quality and transparency

2y Chris Warmoll, Writer
EU's plan gives opportunity to restore audit confidence

Accounting Standards EU's plan gives opportunity to restore audit confidence

2y Chris Warmoll, Writer
Watchdog issues review of audit governance code

Audit Watchdog issues review of audit governance code

2y Chris Warmoll, Writer
Deloitte succeeds in bid to overturn several charges in MG Rover appeal

Corporate Governance Deloitte succeeds in bid to overturn several charges in MG Rover appeal

3y Kevin Reed, Writer
FRC consults in readiness for EU audit rules

Accounting Standards FRC consults in readiness for EU audit rules

2y Chris Warmoll, Writer
FRC concerned over BDO's audit scepticism levels

Accounting Firms FRC concerned over BDO's audit scepticism levels

2y Kevin Reed, Writer
Leader: Law firms should heed accountancy's listing mistakes

Accounting Firms Leader: Law firms should heed accountancy's listing mistakes

2y Kevin Reed, Writer