FRC shares examples from thematic reviews

Nov 09, 2017
The Financial Reporting Council (FRC) has published three thematic reports to help companies improve the quality of their corporate reporting in acknowledged areas of difficulty.
The reports cover: They detail findings from the FRC’s 2016/17 thematic reviews to which companies can refer when preparing their next report and accounts. 
Sixty companies were informed, before their year-end, that the FRC would review one of the three themes in their next reports and accounts.  Many companies responded by improving the quality of their reporting in the selected area. The thematic reviews analyse the enhanced information provided to readers of the reports, and recognise the most significant improvements, including extracts from the better disclosures which most closely matched the FRC’s expectations. The FRC expects other companies to use the better examples observed to assess the quality of their own reporting and raise the bar on their disclosures.
Paul George, FRC’s Executive Director for Corporate Governance and Reporting, said:
“The great majority of companies approached clearly reviewed and revised the relevant disclosures prior to releasing their next set of report and accounts, which provided better quality information to the market in a timely manner. Many sharpened, and some shortened, the relevant information with a view to providing more granular detail about the issues that really matter to those reading their reports and accounts and wanting a better understanding of the key issues and of how management is dealing with them.  We expect others to similarly review their own reports and accounts and look to the characteristics of the better disclosures we identified to inform the continuing development of their reporting.”