Here’s a roundup of recent developments in financial reporting.
What next for sustainable finance?
Greater emphasis should be placed on the need to integrate nonfinancial information in the EU directive on nonfinancial reporting, a finance group reported. The High-Level Expert Group on Sustainable Finance, convened by the European Commission, also advocated for convergence or integration of financial and nonfinancial or sustainability information. The report, published on 31 January, praises the success of integrated reporting for helping embed these concepts. The report will form the basis of the commission’s sustainable finance action plan, according to a news release. The report’s findings and the commission’s action plan are expected to be discussed at a conference on 22 March in Brussels.
Private companies corporate governance principles
The Financial Reporting Council (FRC) in the UK will convene an industry-led group to work on a set of principles for large privately owned companies, according to a news release. The group will focus on corporate governance and reporting issues and will be chaired by James Wates. The group, established in response to the UK government’s Green Paper Consultation on Corporate Governance Reform, aims to encourage high standards of governance and “reflect the impact that large privately owned companies have on society and the economy,” the release said.
UK Corporate Governance Code review
The FRC published its consultation on a review of the UK Corporate Governance Code in December. The comment period for the consultation ends on 28 February. Comments can be sent to codereview@frc.org.uk.
David Hackett is technical policy manager at the Association of International Certified Professional Accountants.