Governance in Brief — FRC publishes 2014 Corporate Reporting Review and sets out areas of focus for the coming reporting season
This publication from Deloitte discusses the Financial Reporting Council (FRC)'s report on the Corporate Reporting Review (CRR) activities for the year ended 31 March 2014.
The CRR found that the standard of corporate reporting by large public companies, particularly FTSE 350 companies, is generally of a good standard, but the FRC continues to see a higher number of poorer quality accounts at smaller full listed and AIM company level.
The FRC considers that a number of common areas require more focus by boards, including:
- more balance in the strategic report;
- more careful presentation of exceptional items; and
- more tailoring of disclosures of judgements and accounting policies.
In this reporting season, the FRC calls for particular focus on areas arising from mergers and acquisitions (control and acquisition accounting), enhanced focus on tailoring disclosure on judgements, and revenue recognition, where the new accounting standard could present considerable challenge for companies.
