The Financial Reporting Council (FRC) has released updated guidance on the ‘Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks’, aimed at helping companies enhance transparency and investor confidence in their financial disclosures.
The non-mandatory guidance consolidates existing requirements from company law, accounting and auditing standards, listing rules, and the UK Corporate Governance Code into a single resource. It provides a practical and proportionate approach for businesses of all sizes to improve the quality and clarity of their going concern disclosures.
Key Updates:
Comprehensive Resource – Combines multiple regulatory requirements into one accessible guide.
Enhanced Transparency – Helps companies provide clear, company-specific disclosures on going concern assessments.
Boosting Investor Confidence – Clear reporting supports access to capital and economic growth.
FRC’s Executive Director of Regulatory Standards, Mark Babington, emphasized the importance of high-quality reporting, stating:
“This guidance supports businesses in delivering clear and coherent going concern disclosures, strengthening investor confidence and access to capital.”
With this update, the FRC aims to streamline reporting requirements and enhance financial stability, ensuring businesses can effectively communicate their financial health to stakeholders.
To find out more details please visit : https://www.frc.org.uk/