FRC corporate governance code and IASB projects update

UK Corporate Governance Code

The UK Financial Reporting Council (FRC) published its final version of the revised code on 16 July. The code was consulted on during the first half of the year and will be effective 1 January 2019. The changes reflect updated thinking on the importance of corporate culture and understanding the business model. Although the FRC conducted a root-and-branch review, many aspects of the previous code remain in place. The code’s updates focus on four areas: broadening the board of directors’ engagement with the workforce, raising emphasis on strategy, promoting board diversity and succession planning, and focusing board oversight on executive pay.

Management commentary update

The International Accounting Standards Board (IASB) met in mid-July to discuss upcoming projects. Having reviewed these, it decided to schedule the review of management commentary information for the first half of 2020, when it expects to publish an exposure draft.

Accounting standards timing

The IASB concluded at its meeting in July that an exposure draft on Accounting Policies and Accounting Estimates (Amendments to IAS 8) is expected in October. Furthermore, a decision on Classification of Liabilities (Amendments to IAS 1) is now expected in September. More status updates can be found here.

— David Hackett is technical policy manager at the Association of International Certified Professional Accountants. To comment on this article or to suggest an idea for another article, contact Neil Amato, an FM magazine senior editor, at Neil.Amato@aicpa-cima.com.