FRC advice for preparing 2017/18 annual reports
Released 10 October 2017
The Financial Reporting Council (FRC) has written to companies highlighting changes to reporting requirements and key areas for improvement for 2017/18 annual reports.
The FRC’s letter draws companies’ attention to areas of investor focus, including:
•The implementation of new accounting standards (International Financial Reporting Standard (IFRS) 9, IFRS 15 and IFRS 16);
•Non-Financial Reporting - new regulations implementing the EU Directive on non-financial and diversity information are effective for financial years beginning on or after 1 January 2017;
•Viability statements - the FRC encourages companies to consider developing their viability statements;
•Dividends - the FRC encourages further adoption of reporting on the capacity to pay dividends;
•Critical judgements and estimates – the need to provide more granular information about a smaller set of judgements and estimates that had a significant impact on results and explaining why certain assets were subject to significant risk of material change;
•Defined Benefit pensions – the need to improve transparency regarding pension arrangements.
View and/or download the Letter at Advice for preparing 2017/18 annual reports.