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This session will take a look at some of the most common financial reporting issues, as identified by the Financial Reporting Council (FRC) in its latest report, the “Annual Review of Corporate Reporting 2023/24”.  It will identify for both preparers and auditors of financial statements the principal areas which they need to focus upon to ensure compliance, based upon the findings of monitoring undertaken by the UK’s financial regulator. 

Edward Rands will cover the following topics during this presentation: 

• An overview of the FRC’s latest report and the monitoring work upon which it is based, along with a review of the “Top 10” findings.

• Impairment of assets: The number 1 issue in FRC’s 2023/24 report (and 2022/23), including the importance of using appropriate key inputs and assumptions, the correct impairment method and the need for careful consideration by parent companies of the recoverability of investments in their subsidiaries.

• Cash flow statements: The second most common issue in this year’s report (and a former number 1), including the need for accurate classification of cash flows, the importance of consistency between reported cash flows and other information in the annual report, and consideration of an accurate definition of cash and cash equivalents.

• Revenue recognition: At number 4 in the latest report, and relevant not only to IFRS preparers but also to those following UK GAAP as a result of the forthcoming changes to the requirements of FRS 102 and FRS 105.

• A look ahead: FRC’s expectations for financial reporting in 2024/25, including pre-issuance checks, assessment and disclosure of risks and uncertainty, and the importance of fair, balanced and comprehensive narrative reporting.

By attending this session, you will obtain an understanding of the areas most commonly requiring improvement in published financial statements.  This is relevant to both preparers and auditors of financial statements.

This session will be of particular interest to anyone involved in the preparation or audit of published financial statements.

The technical level is quite advanced but the session is relevant to anyone involved in the preparation or audit of published financial statements.