FRC Lab report on section 172 statements

The FRC’s Financial Reporting Lab has published a guidance note on section 172 statements. The Companies (Miscellaneous Reporting) Regulations 2018 (SI 2018/860) introduced a range of stakeholder reporting measures, including a requirement for certain companies to include in their strategic report a statement that describes how the directors of the company have had regard to the matters set … Read more

FRC Lab report on corporate reporting and Covid-19

The FRC’s Financial Reporting Lab has published two reports on corporate reporting issues in light of the ongoing Covid-19 pandemic. One covers Resources, action, the future and the other Going concern, risk, and viability. Both reports summarise the key messages from the FRC Lab’s previous reports discussing these issues which were published in June 2020 (see our blog … Read more

FRC paper on the future of corporate reporting

The FRC has published a discussion paper, A Matter of Principles: The Future of Corporate Reporting. The discussion paper explores ideas for fundamental changes to the corporate reporting framework in the UK, to make it more effective and engaging for a company’s stakeholders. It asks whether the traditional concept of the annual report remains fit for … Read more

Criminal proceedings instituted against individuals for false and misleading statements

The Financial Conduct Authority (FCA) has announced that it has begun criminal proceedings against the former chief executive, the former chief financial officer and the former finance director of Redcentric Plc. The company issued unaudited interim results in November 2015 and audited final year results in June 2016 which it is alleged materially misstated its net debt … Read more

Government response on strengthening modern slavery reporting requirements

The government has published its response to its transparency in supply chains consultation. The response sets out significant new proposals intended to strengthen the Modern Slavery Act 2015 (MSA), and in particular the statement on transparency in supply chains required under section 54 of the Act. The proposed measures, which the government consulted on in July 2019, … Read more

Consultation on deforestation due diligence law

The UK government has published a consultation on a new law aimed at protecting rainforests and clamping down on illegal deforestation. The proposed law would introduce mandatory supply chain due diligence obligations and reporting in relation to ‘forest risk’ commodities. The government’s announcement follows the recommendations set out in a March 2020 report prepared by … Read more

Covid-19 – latest developments for corporate practitioners

The following guidance and materials may be of interest to companies in light of the Covid-19 pandemic. Corporate reporting FRC thematic review – The Financial Reporting Council (FRC) has published a thematic review on the financial reporting effects of Covid-19. The report seeks to provide guidance for companies when preparing their annual and interim financial … Read more

FCA to delay implementation of European Single Electronic Format for annual reports

The Financial Conduct Authority (FCA) has published a consultation paper (CP20/12) in which it proposes to delay the introduction of the European Single Electronic Format (ESEF) requirements for annual reports in the UK. Under the amended EU Transparency Directive, annual financial reports of companies which have securities listed on an EU regulated market must be … Read more

EU Taxonomy Regulation on criteria for assessing environmental sustainability

An EU Regulation on the establishment of a framework to facilitate sustainable investment entered into force on 12 July 2020. The Regulation sets out an EU-wide taxonomy, or set of criteria, for determining whether an economic activity qualifies as environmentally sustainable, and therefore the degree to which an investment is environmentally sustainable. The Regulation forms … Read more