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This Discussion Paper offers a once-in-a-generation opportunity for investors and directors to have an input into the direction of financial reporting standards for UK listed companies.
The current Framework, much of which dates from the 1980s, is incomplete and out of date. The Discussion Paper includes new suggestions on: the reporting of financial performance, the measurement of assets and liabilities and presentation and disclosure. The FRC believes that any review should consider whether adequate emphasis is given to key principles of financial reporting including accountability, reliability and the exercise of caution.
Commenting on the publication, Roger Marshall, FRC Board member and Chairman of the FRC’s Accounting Council, said: “The importance of getting the fundamentals of financial reporting right cannot be underestimated. It is vital that IASB develops a Framework so that future accounting standards ensure that management can provide their investors with the information they need, in a way that is readily understandable. This is a moment when everyone can have their say in how the future is shaped."