FRC urges companies to provide high-quality disclosures on impact of coronavirus

23 Jul 2020

The Financial Reporting Council (FRC) has urged companies to provide more detailed disclosures on the impact the coronavirus (COVID-19) has had on their firm.

In a new review, the FRC stated that although companies provided sufficient information to enable individuals to understand the impact COVID-19 has had on their performance, position and future prospects, some companies would have benefitted from 'more extensive disclosure'.

The Council has reminded companies that they should apply existing accounting policies for exceptional and other similar items to COVID-19-related income and expenditure consistently, and should not arbitrarily split income and expenses between COVID-19 and non-COVID-19 financial statement captions. Companies should also prepare interim reports that provide sufficient information to explain the impact that COVID-19 has had on their performance, position and future prospects, the FRC stated.

Commenting on the matter, David Rule, Executive Director of Supervision at the FRC, said: 'The impact of the COVID-19 pandemic on businesses is pervasive but also differs across sectors, geographies and individual companies.

'This review highlights how important it is for company reporting to explain not only how COVID-19 has affected company performance but also how it might affect a company's future prospects.'

Copyright

© 2021 Andrew Wright & Co.. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
01924 379479

Address
Andrew Wright & Co., 10 Cliff Parade, Wakefield, West Yorkshire WF1 2TA


In the UK the term accountant is not protected by law, therefore anyone can call themselves an accountant. Being an ACCA member firm means that you can have confidence that we are qualified to handle your finances, help your business grow and that we are regulated by the leading accountancy body in the world. The ACCA Qualification provides a wide-ranging skill-set, which means we are trained to provide both strategic and operational input and adapt quickly to your changing management accounting needs.

Unqualified persons who have trained for book-keeping or tax only simply aren't able to provide these other services as their skillset is too narrow.

Andrew Wright & Co is a trading style of Andrew Wright & Co Limited. Registered in England and Wales: 10641250. Registered office: 10 Cliff Parade, Wakefield, West Yorkshire, United Kingdom, WF1 2TA.