Looking ahead to the next reporting cycle

The FRC highlights key considerations for companies going into the next reporting cycle.

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The Financial Reporting Lab (the Lab), set up in 2011 and funded by the Financial Reporting Council, aims to ‘help improve the effectiveness of corporate reporting’. Over the past few years they have published numerous reports, this past year focusing on ‘Accounting policies and integration of related financial information’ and ‘Towards Clear and Concise Reporting’.

The lab recently released a document that provided an overview of these reports and highlighted key considerations for companies going into the next reporting cycle.

Accounting policies and integration of related financial information

  • Make sure content is clear and understandable
  • When applying a policy make sure the rationale is explained
  • Describe how the company has applied the policies and describe new IFRS requirements and their impact

Towards clear and concise reporting

The report highlighted areas of improvement which we have summarised here and included steps that companies may consider when implementing the process of improvement. This can be found in the full report.

Audit Committee reporting

In the prior reporting period, the Lab published a report on how investors believed ‘that high quality reporting from Audit committees, which meets their needs, helps to promote long-term commitment’. Suggestions are included to achieve this around ownership, accountability, disclosing specifics and considering the audience.

Alongside information on ‘presenting market risk disclosures’ and ‘providing basic information on debt and cash flows’, more information can be found via the Financial Reporting Council.