Your chance to influence the FRC on consultations around going concern and FRS 101
Going concern guidance consultation
The Financial Reporting Council (FRC) has an open consultation on revisions to its Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks. Once finalised, it will replace the FRC’s existing guidance, issued in 2016.
The draft guidance brings together the requirements or provisions of company law, accounting standards, auditing standards, listing rules, the UK Corporate Governance Code and other relevant regulation.
The draft guidance is intended to help companies prepare high-quality, company-specific disclosures about their going concern conclusions and how they were reached. This process should allow investors to understand a company’s exposure to and plans to navigate solvency and liquidity risks and provide them with the confidence to allocate capital and support the growth of UK companies.
The guidance will be non-mandatory and will serve as a proportionate and practical guide to all UK companies within its scope, which includes companies that apply the UK Corporate Governance Code but excludes small companies and micro-entities. This includes a revised range of factors and techniques directors could consider when performing going concern assessments.
Read the further information from the FRC and do consider responding prior to the consultation closing date on 28 October. The FRC expects to publish the final guidance in early 2025.
ACCA will be responding to the consultation on behalf of members and is keen to receive any comments and feedback on the draft guidance. These should be fed through to our policy team at ukpolicy@accaglobal.com.
FRS 101 research
The Financial Reporting Council (FRC) wants to hear preparers’ views on its accounting standard FRS 101 Reduced Disclosure Framework. The aim of this research is to gather feedback from groups of companies that include entities eligible to apply FRS 101 in preparing their financial statements (whether or not they choose to do so).
FRS 101 sets out a reduced disclosure framework which addresses the financial reporting requirements and disclosure exemptions for the individual financial statements of subsidiaries and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of adopted IFRS.
Interested parties who hold a suitable role at an FRS 101-eligible preparer can participate by completing the FRS 101 research survey.
Further information about the survey and alternative ways of participating can be found at FRC research on preparers’ experience of accounting standard FRS 101 Reduced Disclosure Framework.
Members who wish to send in comments to ACCA for ACCA to respond on behalf of the members can do so by sending these to our policy team at ukpolicy@accaglobal.com.