On 26 September 2012, the Financial Reporting Council (‘FRC’) published the Financial Reporting Review Panel’s annual report for 2012. The Panel, whose report is based on its review of accounts in the year to 31 March 2012, found the quality of corporate reporting to be good overall. It did, however, express concerns about the reports and accounts of some smaller listed and AIM companies, and made certain points in relation to the directors’ report generally, including the following:

  • the need to include a clear description of the company’s principal risks and uncertainties, together with an explanation of the steps taken to reduce their likelihood and effect; and
  • the importance of explaining the impact of significant events or items on the results for the period.

FRC: Financial Reporting Review Panel Annual Report 2012 available at: