CHANGES TO FINANCIAL REPORTS to make them more investor friendly has received broad support, the Financial Reporting Council said.
The FRC this week issued feedback on its discussion paper “Thinking about disclosures in a broader context”, which highlighted that changes were welcomed.
The FRC discussion paper is a “roadmap” for disclosure framework designed to encourage more relevant financial reporting, improving disclosures so that its responsibility is shared among prepares, regulators, auditors and users.
The main users are investors and disclosures should be framed with that in mind, the paper suggests, having regard to communication, relevance and materiality.
A framework would provide a benchmark for measuring suggested disclosures the FRC said.
Melanie McLaren, executive director Codes & Standards said: “We were pleased to see so many positive responses to our discussion paper – Thinking about disclosures in a broader context.
“It is clear that there is a will to tackle the level of “clutter” in financial reports and that establishing clear principles against which to measure proposed disclosures is seen as being helpful.”
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