Companies too often fail to acknowledge in their financial reporting when business has not gone well, according to the UK's governance watchdog. The Financial Reporting Council (FRC) has issued its annual review of corporate reporting and while it recognises that most companies comply with the accounting framework, and improvements are underway, many also skew their reports to the extent that “they erode trust and undermine the quality of corporate reporting”. The FRC highlighted the “excessive” use of underlying profit margins and the “inappropriate” use of alternative performance measures. The FRC called for