Accounting and financial reporting reminders

The resources listed below complement our Closing Out 2016 publication and act as a reminder of the key areas within accounting and financial reporting to be focusing on during the 2016 reporting season. 

They include a number of important messages from the Financial Reporting Council (FRC) for listed companies and a number of key messages from the Conduct Committee's Annual Review of Corporate Reporting 2015/16 which companies should be focusing their attention on.  Also included are the most recent press releases from the FRC's Conduct Committee to serve as a reminder of those areas that it has paid particular attention to in the past and will continue to focus on.  Companies seeking to improve their disclosures around dividend policy and distributable profits and business model reporting should look to reports published by the Financial Reporting Lab. 

For those companies that have not transitioned to the new UK GAAP framework, our 'New UK GAAP' collection of resources below, will provide helpful guidance.  For those that are already applying it there are amended versions of FRSs 100, 101 and 102 which incorporate changes as a result of the UK implementation of the EU Accounting Directive to be aware of.  Additionally, there are significant changes to the financial reporting regime for smaller and micro companies who can no longer follow the FRSSE.  These changes are applicable for accounting periods beginning on or after 1 January 2016.   

There are no new IFRS Standards to note to be applied in 2016 but do not forget a number of amendments and annual improvements that will be mandatorily effective for December 2016 year-ends.  Also, companies should ensure that they disclose the effects of Standards in issue that have not yet been adopted; particularly IFRS 15, IFRS 9 and IFRS 16

In addition to the FRC reminders, the European Securities and Markets Authority (ESMA) has also put out its own reminders to reporters on how to improve the quality of disclosures in financial statements and has also provided an indication of those areas that it (and national enforcers) will be focusing on when reviewing listed companies' 2016 financial statements.  

Also relevant for companies with securities traded on regulated markets are the ESMA Guidelines on Alternative Performance Measures.  The FRC has indicated that it will be considering the ESMA Guidelines when reviewing company reports and accounts in assessing whether they are fair, balanced and comprehensive.  Frequently asked questions on the Guidelines have been published by the FRC to assist directors.  Our Need to know publication also provides useful guidance.  

As well as changes to the UK financial reporting regime as a result of the UK implementation of the EU Accounting Directive, reporters should also note other changes to UK reporting as a result.  These include substantially increased small company size limits and, as well as disclosing a list of related undertakings in the accounts, for accounting periods beginning on or after 1 January 2016, this disclosure will also need to include the address of the registered office of such undertakings. 

A number of changes have also been made to the accounting and reporting requirements for LLPs in law, to align with the changes made for companies and qualifying partnerships.  Our Need to know publication highlights these. 

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Related Publications

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The European Securities and Markets Authority (ESMA) has published a Public Statement aimed at promoting the consistent application of IFRS 9 'Financial Instruments' by European issuers listed on regulated markets.

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The Financial Reporting Council (FRC) has today published the results of its thematic review of tax reporting. Thematic review supplement the FRC’s Corporate Reporting Review (CRR) function’s monitoring of company reports and accounts for compliance with the Companies Act 2006, applicable accounting standards and other reporting requirements. The aim of these reviews is to identify examples of good practice reporting and areas where improvements can be made.

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FRC publishes findings on the quality of corporate reporting in 2015/2016

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The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2015/2016, which provides the FRC's assessment of corporate reporting in the UK based on evidence from a variety of sources, including the work of the FRC's own Corporate Reporting Review (CRR) team.

FRC publishes year-end advice for smaller and larger listed companies

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The Financial Reporting Council (FRC) has today published a letter to Audit Committee Chairs and Finance Directors containing “the FRC’s perspective on aspects of annual reports that companies should aim to improve” in the coming 2016 reporting season and highlighting recent changes to UK reporting requirements.

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This edition of 'Need to know' highlights some key issues and challenges for publicly traded companies in the forthcoming reporting season in relation to the transparency of accounting for and disclosure of both current and deferred taxes required by IAS 12 'Income Taxes' in annual reports and accounts.

ESMA calls for consistent application of IFRS 15

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FRC publishes frequently asked questions on the ESMA APM Guidelines

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FRC publishes scope of Audit Quality Reviews for 2016/17

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FRC publishes guidance for Audit Committee Chairs on the reporting implications of current economic volatility

08 Mar, 2016

The Financial Reporting Council (FRC) has received requests for guidance on how economic uncertainty arising from matters such as volatile asset prices, falling oil prices, low interest rates and the UK's referendum on EU membership should be dealt with in annual reports. In response to these requests, the FRC has published a letter to Audit Committee Chairs highlighting the areas potentially affected.

FRC draft plan and budget highlights key areas of focus for 2016/2017

22 Dec, 2015

The Financial Reporting Council (FRC) has published its Draft Plan & Budget and Levy Proposals for 2016/17, which represents the first year of its new 2016/19 three year strategic programme.

ESMA publishes table showing compliance with guidelines on alternative performance measures

22 Dec, 2015

The European Securities and Markets Authority (ESMA) has published a table showing (intended) compliance with its final Guidelines on Alternative Performance Measures (APMs) for listed issuers.

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