FRC programme on auditing, report on diversity, and more
Here’s a roundup of recent developments in the corporate reporting world.Audit sector
The UK Financial Reporting Council (FRC) announced a strategic programme of work on auditor independence, audit quality, the future needs of investors, and corporate viability, it said in an 8 October news release. The UK government’s Competition and Markets Authority has also launched a study of the audit sector.
FTSE 350 diversity report
The FRC published a report in September that assesses the current extent and manner of reporting by FTSE 350 companies on diversity amongst board members and senior management. The report shows a generally improving picture but notes evidence that momentum has tailed off and progress on increasing female representation in leadership roles, in particular, has stalled.
Call for participation in climate change reporting project
The FRC’s Financial Reporting Lab is calling for participants for its next project on the disclosure of climate change and workforce information. The project will look at how the Lab’s recommendations in previous reports on business model reporting, risk and viability, and performance metrics apply to companies’ reporting on climate change and their workforce. It will look at how climate and workforce disclosures can be reported more effectively.
Audit rules
Following the implementation of the Audit Directive in 2016, Accountancy Europe published a document based on a survey of members to find out how the directive has been implemented across the continent.
Management Commentary project
The Consultative Group for the IASB’s Management Commentary project had its inaugural meeting on 28 September. The group’s remit is to consider analysis and provide input for the IASB as it develops proposals for revising IFRS Practice Statement 1, Management Commentary.
Wates review
The comment period for the FRC’s Wates Corporate Governance Principles for Large Private Companies has closed, with about 50 responses received, including from the Association of International Certified Professional Accountants. The review team will publish the revised principles at a date to be determined.
— 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.