The Financial Reporting Review Panel (“FRRP”) has published its 2011 Annual Report, based on findings from its review of reports and accounts in the year to 31 March 2011.
The FRRP found the general quality of corporate reporting to be good, especially by larger UK listed companies. However, it continues to have concerns about the quality of reports and accounts of some smaller listed and AIM quoted companies, where there is still room for improvement.
Narrative reporting has been a key area of interest to the FRRP. Although some poor practice was still seen, the FRRP was particularly pleased to note widespread improvement in the description of principal risks and uncertainties in the business review included within the directors’ report. Boards are also now more likely to describe the actions they are taking to mitigate the effects of risks and uncertainties which the FRRP believes is required in order to satisfy the objectives of the review.
The FRRP was also pleased to report that boards continued to co-operate well with it during the year, often voluntarily giving undertakings to improve the quality of their future yearly and half-yearly reports.
For a copy of the FRRP’s Annual Report please click here.