On 22 October 2015, the FRC published its Corporate Reporting Review Annual Report for 2015 covering its review of reports and accounts conducted in the year to 31 March 2015.
The report states that:
- The FRC is concerned about how some boards assess materiality. Materiality assessments should not be used to conceal errors or present a desired outcome;
- Some smaller companies do not comply with the relevant standards;
- There were ten areas of corporate reporting that were commonly queried by the FRC during the year including clear and concise reporting, critical judgment, strategic reports and accounting policies;
- Boards should be focusing on disclosures relevant to investors in their strategic report rather than including irrelevant information;
- Boards should make meaningful disclosures of specific judgments when applying their accounting policies; and
- Boards should not include irrelevant information in their reports and accounts but should advocate clear and concise reporting.
This report can be accessed at:
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