The newsletter “Setting the Standard” covers the following key areas:

• Clear and Concise Reporting. The newsletter discusses the ‘Clear and Concise: Developments in Narrative Reporting’ report published in December 2015 in addition to the following narrative reporting issues:
  • The publication on the 16 February 2016 of the Department of Business, Innovation and Skills (BIS)’s consultation document on the European Union’s (EU's) non-financial reporting Directive.
  • The International Accounting Standard Board (IASB) Disclosure Initiative.
  • Draft Practice Statement on the Application of Materiality published by the IASB in October 2015.
  • The IASB’s Principles of Disclosure Discussion Paper that is expected to be published in the next six months.  More details on the Principles of Disclosure project can be found here.
• UK GAAP Update. Three financial reporting exposure drafts (FREDs) were recently issued for comment – FRED 62, FRED 63 and FRED 64. These will affect only a limited number of entities preparing financial statements in accordance with UK GAAP.
• Other UK GAAP updates include the triennial review of Financial Reporting Standard (FRS) 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – this will now take place later than originally envisaged with any changes not expected to take effect before 1 January 2019.
• IFRS Update:
  • FRC response to IASB on its Conceptual Framework. 
  • Clarifications to IFRS 15 Revenue from Contracts with Customers. In its response to the IASB’s Exposure Draft on this issue, the FRC strongly supported efforts to achieve a final converged Standard but stressed the over-riding priority was the development of a high quality Standard that meets the needs of stakeholders.
  • The publication of IFRS 16 Leases in January 2016 by the IASB.
  • IFRS 9 Financial Instruments and IFRS 4 Insurance Contracts and implementation issues arising from the delay in finalising IFRS 4.
  • Amendments to IAS 7 Statement of Cash Flows issued by the IASB in January 2016, highlighting the FRC’s Financial Reporting Lab work in this area.
• Current projects of the Financial Reporting Lab, specifically the project on Dividend Policy Disclosure.
• Corporate Reporting Review. The FRC will undertake a thematic review of companies’ tax reporting in 2016.

Please click here for the full newsletter on the FRC website.