FRC faces Lords committee grilling over going concern

THE FRC is set to face the House of Lords Economic Affairs Committee over controversial proposals on going concern.

A third consultation into the regulator’s interpretation of the Sharman Review findings closed last week. Investors subsequently described the plans as “damaging to the public interest”.

An Economic Affairs Committee spokesman confirmed representatives of the FRC will be called to appear at a one-off session, likely to be held on 22 July.

While the exact details of hearing are still be finalised, the watchdog will face questions over “issues around statements of going concern”.

An FRC spokesman confirmed chairman Win Bischoff (pictured) and chief executive Stephen Haddrill will provide evidence at the hearing.

If the current plans are accepted, changes to going concern will go live in October this year, along with amendments to remuneration policy in the latest UK Corporate Governance Code update.

In January, David Pitt-Watson, a key member of the Sharman inquiry, warned the FRC was in danger of departing from some of the panel’s original recommendations.

In an email sent to investors and institutional representatives seen by Accountancy Age, Pitt-Watson urged them to take part in the consultation after the definition of going concern had drifted from its common sense meaning to one that only applies to its technical use.

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