The UK financial watchdog warns that reporting should reflect the impact of Covid-19—under different scenarios—on liquidity, viability and solvency.
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
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