FRC urges companies to provide ‘full disclosure’ of survival prospects
The UK financial watchdog warns that reporting should reflect the impact of Covid-19—under different scenarios—on liquidity, viability and solvency.
Image: OSORIOartist/Shutterstock
UK companies are under notice to be transparent about their prospects for survival as a result of the Covid-19 crisis.
The warning comes from the Financial Reporting Council (FRC), the UK’s governance and financial reporting watchdog, in guidance issued this week to highlight “key areas of focus for boards”.
In gloomy news for business, the FRC says it expects more companies to disclose “material uncertainties”—events leading to corporate failure—in their going concern statements.
The watchdog stressed the need for companies to supply information to investors and stakeholders, declaring: “At this time, the need for fu
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Related Stories
-
MPs seek assurance over reputation of UK governance
British MPs insist that the reputation of UK corporate governance is safeguarded following changes to listing rules, which has prompted concerns over the listing of Saudi Arabia's state-owned oil company.
-
Academics issue ‘call for reflection’ on EU corporate governance reforms
The group of researchers and professors say the EU should pause new sustainability laws and instead review a raft of academic criticism.
-
Remco chairmen should resign over shareholder revolts
Investors call for remuneration committee chairmen to step down if pay policies fail to win backing of 75% of shareholders.
