FRC announces thematic reviews and priority sectors for 2021/2022

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11 Dec, 2020

The Financial Reporting Council (FRC) has announced its corporate reporting and audit quality review programme for 2021/22 alongside its priority sectors for review.

The Corporate Reporting Review team will undertake thematic reviews in the following areas:

  • Going concern and viability. The thematic review will focus on management’s assessments and disclosures in relation to going concern and viability.
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets.  The review will pick up issues identified regarding compliance with the Standard identified in the FRC's Annual Review of Corporate Reporting.
  • Streamlined Energy and Carbon Reporting (SECR) compliance.
  • Alternative Performance Measures.  This will be a follow up to the FRC’s 2017 thematic review to assess the extent to which its expectations on use of Alternative Performance Measures have been embedded into reporting practices.
  • Interim Reporting. The FRC will review compliance with the requirements of the Disclosure Guidance and Transparency Rules and IAS 34 to identify areas of better practices.

As part of the FRC’s programme of audit quality inspections, the Audit Quality Review (AQR) team will pay particular attention to the auditor's work on:

  • COVID-19 impact including in relation to going concern, impairment of assets, inventory and group audits.
  • Estimates.
  • Fraud.
  • Climate risk.

In selecting corporate reports and audits for review, tthe FRC will give priority to the travel, hospitality, leisure, retail, property and financial services sectors.

A press release is available on the FRC website.

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