Clear disclosures about the effect of major new accounting standards, alongside better linkage between strategy, KPIs and remuneration, are areas under the gaze of the Financial Reporting Council.
Paul George, FRC. Photo: FRC
The implementation of critical and heavy-impact accounting standards by corporates will be a focus of attention for the financial watchdog in the coming year, alongside a need for better linking of strategy to KPIs.
In a letter to audit committee chairs and finance directors, the Financial Reporting Council (FRC) has outlined key changes to reporting requirements and areas it wants to see improved.
Three major accounting standards are coming into effect over the next 18 months: IFRS 9 ‘Financial Instruments’; IFRS 15 ‘Revenues from Contracts with Customers’; and IFRS 16 ‘Leases’.
The letter, written by FRC executive direc
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