FRC identifies risk in corporate reporting

News Article - 15 January 2008
Category: Regulatory

The Financial Reporting Council (FRC) has issued its draft plan and budget for 2008-09 for comment.

According to the organisation, the draft identifies a number of risks in corporate reporting and governance such as the possibility of one of the Big Four firms withdrawing from the audit market and continued credit market turbulence.

Chair of the FRC Sir Christopher Hogg commented: "Confidence in the quality of corporate reporting and governance in the UK contributes to the economy overall and to the UK's competitiveness in international markets."

Sir Christopher claimed that although confidence levels appeared high, "there is no room for complacency".

The draft proposes a nine per cent increase in costs allocated to corporate governance and reporting and a 22 per cent increase in core operating costs for actuarial standards and regulation.

Charles Tilley, chief executive of the Chartered Institute of Management Accountants recently stated that corporate reports are essential in detailing company strategies to current and possible investors.

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