The FRC’s Corporate Reporting Review team will supplement its routine reviews of corporate reporting with four thematic reviews. These reviews will identify scope for improvement, as well as areas of better practices, in a number of areas of stakeholder interest. The FRC’s Audit Quality Review team has also signalled its areas of focus for audit monitoring.
In selecting corporate reports and audits for review, priority will be given to certain higher risk sectors.
Thematic reviews of corporate reporting
The FRC will follow-up its recent report on IFRS 16 in interim reports by considering how a sample of companies apply IFRS 16 to their annual report and accounts. It will assess the extent to which the findings of its reviews of interim reports have been addressed. A ‘deeper dive’ will also be carried out into certain findings from the recent report into the application IFRS 15. The full list of reviews is:
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IFRS 16: review of disclosures in the first year of implementation
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Cash flows and liquidity disclosures
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IFRS 15: a deeper dive
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The effects of the decision to leave the EU on companies’ disclosures.
The Corporate Reporting Review team will also contribute to a planned FRC-wide project focusing on climate change, by reviewing the relevant disclosures given in companies’ annual reports.
Priority sectors
Priority sectors are those considered by the FRC to be particularly high risk in terms of corporate reporting and audit by virtue of particular economic or other pressures. The corporate reports and audits selected for review by the FRC will have regard to the following priority sectors:*
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Financial Services
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Retail, including Retail Property and Travel & Leisure
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Construction and Materials
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Manufacturing
Full press release on FRC
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