FRC publishes updated Guidance on the Strategic Report
22 Jun, 2022
The Financial Reporting Council (FRC) has published an updated edition of its Guidance on the Strategic Report to incorporate the new climate-related financial disclosures, following changes in legislation made earlier this year, along with a number of other amendments which have been made to maintain alignment with legislation.
The Guidance updates the version issued in June 2018 with the following:
- the changes introduced by The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 (SI 2022/31) and The Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022 (SI 2022/46) which require certain entities to make climate-related financial disclosures in line with the Taskforce on Climate-related Financial Disclosures(TCFD) recommendations;
- amendments to The Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) and The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (SI 2008/1911), which implement the government’s policy on Streamlined Energy and Carbon Reporting (SECR). The SECR amendments were made to the appendices that relate to the directors’ report disclosure requirements;
- amendments to The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (SI 2008/1911) introduced by The Statutory Auditors Regulations 2017 (SI 2017/1164), which requires a traded Limited Liability Partnership (LLP) or banking LLP to prepare a strategic report;
- amendments to the definition of a public interest entity (PIE) to align it with the existing legislation; and
- some minor typographical or presentational corrections.
A press release and the 2022 Guidance on the Strategic Report are available on the FRC website.
