Gather Around – Issue 35 – July 2022

This month, the FRC has been busy getting its publications out before the August lull. It has published its position paper on its transition to ARGA, its annual report and accounts, new first-of-a-kind guidance on AGMs, its annual audit quality review findings, a thematic review on judgements and estimates and research on the effectiveness of the Stewardship Code.

The FRC’s position paper outlines its headline plans including revising existing codes, strengthening auditing and accounting standards, setting expectations to drive behavioural change ahead of statutory powers, and the development of guidance to address issues set out in the Government Response. In particular, the Position Paper sets out proposed changes to the UK Corporate Governance Code. This will provide a stronger framework for reporting on the effectiveness of internal controls and Board responsibilities for expanded sustainability and ESG reporting, and new guidance on enhanced resilience statements and fraud reporting by directors.

We have also published the fifth in our series of best practice papers focused on business model reporting.