With the annual financial reporting season nearly upon us, the FRC has provided UK companies with advice on how to improve the quality of their corporate reporting. Much of the guidance is aimed at listed companies and IFRS reporters, but non-listed companies and UK GAAP reporters might also benefit from some of the hints and tips.
As a result of recent thematic reviews, the FRC has again highlighted the importance of the disclosure of key judgement and estimates. The report includes a case study (see page 15 of the report) to illustrate what the FRC expects to see by way of informative disclosures.
IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments are effective for accounting periods beginning on or after 1 January 2018. The FRC reviewed the quality of the disclosures of the impact of the new standards within June 2018 interim statements and has highlighted areas for potential improvement for the year-end accounts. More detailed reports of the findings have been published separately.
The report also takes a look at the Strategic Report and how the implications of the UK’s decision to leave the EU have been reported, with indications of what it considers to be good (and bad) practice.
Read the full report, including further detail on the thematic reviews and future developments. You can also read the open letter to Audit Committee Chairs and Finance Directors which provides a summary of the key developments for 2018/19 annual reports.
The topics covered by this report include:
This report includes several illustrative examples of good practice and a decision tree for determining disclosure requirements for judgements and estimates (see page 28 of the report).
Read the full report
The faculty has a range of resources available to help you with your year-end accounts.
For IFRS reporters, as well as the 2018 IFRS Accounts factsheet setting out the mandatory requirements coming into force this year, we have specific factsheets offering practical guidance on the implementation of IFRSs 9, 15 and 16. All our IFRS factsheets are available at icaew.com/frfifrsfactsheets. The faculty’s webinar IFRS Accounts – topical issues on 21 November will be picking up on some of the points raised by the FRC in their recent reports and guidance. Recording of previous webinars on topics such as IFRS9 and IFRS 15 can be accessed at icaew.com/frfwebinars. And don’t forget that your subscription as a faculty member you have full access to eIFRS as part of their subscription.
For many UK GAAP reporters a key issue will be deciding whether to early adopt the Triennial Review 2017 amendments. The amendments are covered in the 2018 UK GAAP Accounts factsheet as well as a number of webinars, podcasts and FAQs which have been published this year. You can find all the resources at icaew.com/newukgaap. Our December webinar UK GAAP – Untangling the knots will be looking at the hot topics identified by the ICAW’s Technical Enquiry Service and at the financial reporting roadshow.
And as Brexit looms ever closer, keep an eye out on the guidance available on ICAEW’s Brexit hub at icaew.com/brexit. The faculty will be producing the guidance on the potential impact Brexit might have on the accounts and future accounting regulations.