This week, the Financial Reporting Council (FRC) published useful pointers on issues to consider for financial reporting in 2016. This was in response to increased uncertainty and volatility due to events such as the recent movements in oil prices and the upcoming UK referendum on EU membership.
The FRC highlighted certain areas to pay closer attention to when preparing financial statements including the following:
- Going concern - Consideration should be given to any events after the reporting period which, in light of recent events, may impact on the entity’s ability to continue as a going concern, or may require disclosure as a material uncertainty.
- Valuations - Consider whether any events or circumstances would affect valuations in the financial statements and whether this requires disclosure.If disclosure has already been made detailing the range of outcomes, these possible outcomes will need to be re-assessed.
- Principal risks - Consider whether recent events or circumstances impact on the disclosure of the principal risks and uncertainties, also ensuring that the directors’ report and strategic report include the most current prospects for the company.
For the full FRC press release, this can be found here.
The disclosure checklistavailable from Ideagen includes the disclosure requirements for going concern, events after the reporting period and principal risks for those entities where they are relevant.
Pentana Disclosegives you the ability to tailor checklists by answering some simple questions about your particular client, which reduces the disclosure requirements to those that are relevant. The checklists contain all the most recent accounting standards, including FRS 102, SORPs and relevant UK legislation and are regularly updated to ensure all the relevant requirements are covered.
Pentana Disclose is already being used by companies such as PwC, RSM, EY, Moore Stephens, PKF International, Grant Thornton and BDO, who are already reaping the rewards of our financial disclosures checklist.