Newswire October 2023

AUDIT & ACCOUNTING

FRC publishes project update on periodic review of UK and Ireland accounting standards

The FRC has published a project update on its periodic review of FRS 102 and other financial reporting standards. FRED 82 proposed significant amendments to FRS 102 and FRS 105 affecting revenue recognition, lease accounting, and a number of other incremental improvements and clarifications. The FRC has undertaken significant engagement with stakeholders and is currently taking into account the helpful responses and feedback received across all aspects of the proposals.

The FRC currently expects to issue the final amendments to FRS 102 and other FRSs in the first half of 2024, with an effective date not before 1 January 2026.

FRED 84 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Supplier finance arrangements

The FRC has issued FRED 84 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Supplier finance arrangements , which proposes to introduce new disclosure requirements to provide users of financial statements with additional information about an entity’s use of supplier finance arrangements and the effect of such arrangements on the entity’s financial position and cash flows. FRED 84 is based on amendments issued by the IASB in May 2023.

Government abandons plans to introduce new reporting regulations

The Government has withdrawn draft regulations that were set to introduce new reporting requirements for large listed and privately-owned companies, including the need to publish an annual resilience statement, a material fraud statement, a triennial audit and assurance policy statement and the need to disclose a distributable profits figure. Instead the Government will pursue options to reduce the administrative burdens placed on business.

FRC sets out reporting expectations amidst ongoing economic uncertainty

The FRC has published its Annual Review of Corporate Reporting with the findings from its monitoring activities, together with its expectations for the coming reporting season. The report is based on the review of 263 company reports.

UKEB Publishes User Survey on Accounting for Intangibles

The UK Endorsement Board (UKEB) has published its user survey on Accounting for Intangibles. The UKEB is seeking views on how the accounting for, and reporting of, intangible assets could be improved to provide users of financial statements, such as investors, with more useful information to help them make better informed decisions.

FRC Publishes Revised ISA (UK) 505 External Confirmations

The FRC has published ISA (UK) 505 External Confirmations (Revised October 2023).The revisions to the standard reflect recent enforcement findings as well as ensuring that modern approaches to obtaining external confirmations are considered, with additional material in respect of digital means of confirmation, enhanced requirements in relation to investigating exceptions and a prohibition on the use of negative confirmations.

FRC to strengthen auditor reporting requirements of breaches of laws and regulations

The Financial Reporting Council (FRC) has launched a consultation on both ISA (UK) 250 Section A and ISA (UK) 250 Section B to strengthen auditor requirements to detect and report material misstatements from non-compliance with laws and regulations and to clarify instances auditors should report such breaches, and other significant matters, to the relevant regulators.

ICAEW Corporate Reporting Faculty publishes updated factsheet on IFRS 16 Leases

The Corporate Reporting Faculty has published an updated factsheet on IFRS 16 Leases. The factsheet provides an overview of IFRS 16 together with practical tips and examples. It has been updated for recent amendments.