On 24 July 2015, the Financial Reporting Council's Financial Reporting Lab Project ("FRL") announced that it will commence a study to analyse how quoted companies report their business models in their annual reports, as required by the UK Corporate Governance Code and the Companies Act. FRL is a project seeking to improve the effectiveness of corporate reporting with input from companies and investors.
In particular, FRL wants to help companies understand how investors use the companies' information when deciding to invest and how to present it clearly and effectively. The FRL's study will consider in particular:
- the definition of "business model" under the Companies Act and the UK Corporate Governance Code;
- preparation of business model disclosures;
- how investors use business model disclosures; and
- the characteristics of good business model reporting.
FRL aims to publish its reports in the first quarter of 2016.
A copy of the announcement is available here:
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