FRC publishes thematic review findings of IFRS 9, IFRS 15, and IAS 36 company disclosures
10 Oct, 2019
The Financial Reporting Council (FRC) has published three thematic reviews to help companies improve the quality of their corporate reporting in relation to IFRS 9 'Financial Instruments', IFRS 15 'Revenue from Contracts with Customers' and the impairment of non-financial assets.
The reports analyse the disclosures in a sample of companies’ reports and provide examples of better practice.
The FRC concluded that IFRS 15 disclosures could be improved especially with respect to
- improving the descriptions of accounting policies and ensuring that these are tailored to their own particular circumstances; and
- providing more detailed information about the judgements significantly affecting the amount and timing of revenue.
In connection with IFRS 9 the FRC found that there was still room for companies to improve disclosures by
- analysing the credit quality of trade receivables by non-banking companies; and
- providing details of the indicators of a significant increase in credit risk particularly by the smaller banks.
As regards IAS 36 and the impairment of non-financial assets, the FRC encourage companies to pay greater attention to:
- providing relevant information around significant judgements and key assumptions made in estimating the recoverable amount of assets and cash-generating units;
- explaining the sensitivity to changes in key assumptions, where reasonably possible changes could give rise to impairment of goodwill or material further adjustments to already-impaired assets.
Please click for the following additional information on the FRC website:
