13 Oct 2023
The Financial Reporting Council (FRC) has set out its reporting expectations amidst the ongoing cost-of-living crisis.
The FRC recently published its Annual Review of Corporate Reporting, outlining its findings from its monitoring activities and its expectations for the coming reporting season.
The most common issues identified by the FRC included impairment problems and making judgements and estimates. It stated that this 'reflects the ongoing economic uncertainties companies need to factor into their financial reporting' and the requirement for detailed explanations to help users understand the positions taken.
A 'significant number' of issues with cashflow statements were also uncovered, resulting in seven companies restating their results.
Sarah Rapson, Executive Director of Supervision at the FRC, said: 'During periods of economic uncertainty, it is especially vital that companies provide users of annual reports and accounts with decision-useful information.
'While the overall quality of company reporting we have seen remains consistent, companies should continue to familiarise themselves with FRC findings and expectations to ensure they are providing high quality disclosures.'