Financial Reporting Lab calls for participants in a new Lab project: reporting on risks, uncertainties and scenarios
15 Sep, 2020
The Financial Reporting Lab has called on investors and companies to participate in a new project on corporate disclosures on risks, uncertainties and scenarios.
The scope of the project will include:
- exploring whether and how companies’ risk identification, risk management and scenario planning processes are evolving and how this is impacting reporting and disclosure.
- determining whether the time horizons utilised in scenario planning have changed.
- considering how companies communicate uncertainty in their disclosures.
- discussing which areas of reporting are most challenging for companies.
- exploring examples of risks and related disclosures where investor focus has been heightened by the current pandemic (for example, supply chain risk, existential risk/viability of business model).
- analysing how investors use this information in their decision-making process and identify whether reporting meets investor needs;
- discussing what types of disclosures would be most useful in interim reports; and
- highlighting best practice in current company reporting.
A press release and further information are available on the FRC website.