Financial Reporting Council Publishes Its Annual Report for 2011/12
The Financial Reporting Council (FRC), the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment, publishes its Annual Report for 2011/12.
The Annual Report describes the ways in which the FRC, working closely with its stakeholders, has contributed to promoting high quality confidence in corporate reporting and governance during 2011/12.
Baroness Hogg, Chairman of the FRC, said:
“In the past year, we have published our first assessment of the implementation of the UK Corporate Governance Code and Stewardship Code, proposed improvements in the way companies report on the key strategic risks facing their businesses, and supported Lord Sharman’s Panel of Inquiry to consider going concern and liquidity risks.
Within Europe, we have continued to engage in the debates on corporate governance and auditing.
The recent passage of legislation to reform the FRC empowers the Board to set both our strategic direction and standards. We have created two Board Committees, on Codes & Standards and Conduct, to co-ordinate the work of the different parts of the organisation, drive forward our international work and take a number of supervisory decisions. We have also created three expert Councils to advise on accounting, audit & assurance and actuarial issues. These Councils will have a crucial role in ensuring that the FRC remains an accountable and transparent standard-setter.
We believe that these reforms mark the beginning of a deeper and wider relationship between the FRC and its stakeholders. Our key challenge will be to work with investors, business, the professions and other regulators and other interests to identify and help address the challenges facing those responsible for corporate governance and reporting in the UK.
Looking to the year ahead, we will focus on the improvement of our codes and standards; our international influence; and the strengthening of our conduct work, including the enhancement and overhaul of the disciplinary scheme.”