The Financial Reporting Council (‘FRC’) has published its Draft Plan and Budget for 2012/13 with proposals for the corporate governance projects it intends to address in 2012/2013. They include the following:  

  • the introduction of a revised UK Corporate Governance Code (‘the Code’) with effect from 1 October 2012. The revised Code will reflect the outcome of the monitoring exercise undertaken by the FRC in December 2011 and will implement, among other things, new provisions on board diversity. The FRC will consult on the amendments to the Code later this year;  
  • the continued promotion of better quality explanations by companies if they decide to depart from provisions of the Code; • a consultation on amendments to the Stewardship Code and the continued encouragement of closer engagement between companies and investors;  
  • the progression of Lord Sharman’s awaited conclusions on how the health of a company, especially whether it is a going concern, should be assessed and reported; and  
  • the progression of the FRC’s consultation on ‘Effective Company Stewardship’. This initiative aims to ensure better quality reporting of business models and risk, greater clarity about the respective responsibilities of audit committees and auditors as well as better reporting of the work of the audit committee.  

Comments were requested by 13 April 2012 and the FRC aims to finalise its proposals by the end of this month.  

FRC: Draft Plan and Budget 2012/2012: March 2012 available at:  

http://www.frc.org.uk/images/uploaded/documents/FRC%20 draft%20plan%20and%20budget%202012-131.pdf