FRC Lab reports on current questions investors seek answers on

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15 Jun 2020

Two new reports from the Financial Reporting Lab of the UK Financial Reporting Council (FRC) provide practical guidance to companies in areas of reporting that investors have highlighted as being most critical in these times of unparalleled economic uncertainty.

The reports found that investors recognise COVID-19 may create a wide range of issues for companies, but that the provision of transparent and timely information helps investors in their decision-making and drives the allocation of capital when companies are looking to the markets for support.

Specific elements of uncertainty relevant to the next 12 months might include (but are not limited to):

  • Timing of resumption of operations.
  • Further restrictions that limit the return to normal operations.
  • Restrictions placed on government (or other) capital.
  • Timing and continuation of government schemes and support packages.
  • The outcome of capital raising actions, discussions with banks, and landlords.
  • Short-term impacts of pricing changes to revenue and expenses.
  • Impacts on human capital, the supply chain and customers.

Please click for the following additional information on the FRC website:

  • Report with practical advice to companies and infographic setting out the disclosures investors expect to see from companies during this time of uncertainty
  • Report with specific guidance on going concern, risk and viability disclosures

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