Financial Reporting Review Panel Publishes Revised Operating Procedures
The Financial Reporting Review Panel published revised operating procedures which incorporate changes on sharing information with the Audit Inspection Unit (AIU) and on the circumstances in which the Panel may make an announcement about a company’s report and accounts under review.
The Panel works for as much mutual agreement as possible with companies in seeking improvements to their financial reporting. The amendments to the operating procedures do not affect this. The Panel is pleased that a more efficient approach will be possible through greater cooperation with the AIU. It is also pleased that the revised procedures will allow more transparency about the Panel’s work in specific circumstances.
Following public consultation and approval by the Department for Business (‘BIS’), the key changes, as proposed in the consultation document:
enable the Panel to share voluntary information received by the Panel with the AIU:
reserve the right of the Panel to make an announcement where, following its intervention, a company makes a significant change, whether corrective or clarificatory, to its financial or corporate reporting:
enable the Panel to release its own press announcement if the fact of a Panel enquiry has become public other than as a result of a Panel press notice.
The feedback paper on the responses to the consultation paper provides further information on the practical considerations the Panel will apply.
The reforms of the FRC’s structure will necessitate amendments to operating procedures. These consequential amendments will be announced and published following approval by BIS.
The revised operating procedures apply to all cases where the Panel’s initial letter is sent to the company on or after 1 April 2012.