Closing Out 2016
28 Nov 2016
Welcome to our one-stop guide for all the issues you need to consider as you prepare your December 2016 accounts and look forward to 2017.
A key theme running through 2016 has been one of uncertainty, whether over the timing and terms of the UK’s exit from the European Union following the result of June’s referendum, the possible changes in U.S. policy following the result of the presidential election or from other sources such as the continuing conflict in the Middle East.
The reporting and, significantly, disclosure of such risks and their potential effects on a company’s performance is a key area of focus for the Financial Reporting Council (FRC) as discussed in its Annual Review of Corporate Reporting 2015/16. Other areas of focus also centre on effective, clear and unbiased communication with investors, for example:
- The reporting of financial performance, including in the use of ‘alternative’ or ‘non-GAAP measures’.
- Reporting the effects of income tax, with particular focus on clear discussion of tax risks and uncertain tax positions.
In addition, while the changes to accounting requirements effective this year are limited, there is a high level of interest in disclosure of the likely effects of upcoming standards such as IFRS 15 on revenue and IFRS 9 on financial instruments, with a clear expectation from both the FRC and the European Securities and Markets Authority (ESMA) that clear, entity specific information will be included in 2016 financial statements.
More broadly, initiatives in areas such as integrated reporting, disclosure of dividend policies and business model reporting continue to gain traction with the FRC reminding directors of their responsibility under the Companies Act to have regard to stakeholders such as employees, suppliers and customers in promoting the success of the company.
Our Closing Out 2016 publication covers all these topics and more and will help you to navigate your way through the increasingly complex and interconnected issues surrounding corporate reporting.
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- Accounting and financial reporting reminders
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- Our dedicated annual reports insights site, providing a suite of resources drawn from our annual survey of corporate reporting
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- Accounting Roundup - Closing out 2016