The UK's Financial Reporting Council (FRC) recently issued updated guidance for companies on their strategic report.
The FRC's Guidance on the Strategic Report makes changes to the previous version issued in 2018 to incorporate the following:
- Climate-related financial risks and opportunities, in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
- The need for traded limited liability partnerships (LLPs) and banking LLPs to publish a strategic report.
- Amendments to the definition of a public interest entity (PIE) to align it with existing legislation.
- The UK government's Streamlined Energy and Carbon Reporting (SECR) requirements.
The requirements that the guidance relates to have various effective dates. "The guidance is intended to serve as best practice when entities are applying the relevant legal requirements," the FRC noted.
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