Search for

FRRP will prioritise media

1 Dec 08

The Financial Reporting Review Panel is to extend the industry sectors it prioritises to include other entities which derive significant revenue from the provision of services such as advertising, media, recruitment and technology, in view of the deteriorating economy

During 2009-10 it will also keep up its present bias towards banking, retail, travel and leisure, commercial property and housebuilders.

The panel’s remit still includes the business review, where the Companies Act 2006 introduced two important changes. First, the purpose of the review now includes helping shareholders assess how the directors have performed their statutory duty to promote the company’s success. Also, business reviews of quoted companies must now refer to the main trends and factors likely to affect their future development and performance.

All business reviews must contain a description of the principal risks and uncertainties facing the company.

The panel will consider the adequacy of these disclosures in terms of what a reasonable board might be expected to conclude on the basis of information available when the accounts are approved. It will expect to see, where appropriate, an account of how the directors are managing the risks which the company faces.

Accounts for review will be selected from the full range of companies in the panel’s remit, which includes large private companies.

 

The panel plans to update its website to reflect the new business review requirements.

Bill Knight, chairman of the panel said: “In this difficult economy it is more important than ever that directors try, so far as they can, to offer a clear account of their company’s achievements and the risks that the company faces. The panel will encourage clarity and frankness in compliance with the law.”

Page No: 105

Tags

Related Articles

Advertisement