Watchdog says investors expect companies “to articulate their expectations of the possible impacts on their specific business” amid Covid-19 crisis.
The UK’s financial reporting regulator expects more companies to report “material uncertainties” about their future prospects in the coming reporting season and warned companies to be clear about the potential for corporate failure.
The Financial Reporting Council (FRC) made the admission while offering guidance to companies on financial reporting during the Covid-19 crisis.
At the same time, the Financial Conduct Authority has granted companies two extra months to complete their audited accounts.
The FRC guidance seeks to clarify the meaning of “material uncertainties” while also stressing that when drafting strategic and
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