ACCA welcomes the opportunity to provide views in response to the Financial Reporting Council's public consultation
ACCA welcomes the key changes proposed and supports the UK government in its objective to enhance the code’s effectiveness in promoting good corporate governance.
We commend the FRC for making the changes set out in the draft revised Corporate Governance Code.
We believe that the key proposed revisions should deliver more outcomes-based reporting but also consider that culture needs more emphasis if the proposed revisions are to drive change and add any value. The roles, skills and composition of the board are crucial factors in influencing the behaviours and mindsets needed to meet the organisation’s objectives.
We welcome the key changes proposed in this consultation that aim to get boards more active in building resilience and reporting on how they do this. We also agree with the overarching purpose of these changes to encourage companies to provide more transparency about whether they can conclude that risk management and internal controls are effective over the 12-month reporting period. In the context of increasing importance of non-financial reporting, it is essential that boards are tasked with ensuring the continuous monitoring of the organisation’s governance framework, and that the process for doing so is clearly defined and communicated across all operations.
To find out more, download ACCA's response to the consultation.