The FRC has issued its Annual Report for 2012/2013 which outlines the FRC's assessment of the state of corporate governance, corporate reporting, audit and actuarial practice in the UK, along with the FRC's planned actions in these areas.

The FRC's monitoring of the implementation of the Corporate Governance Code (the Code) and Stewardship Code showed that non-compliance is very much in the minority. It found the standard of explanations for non-compliance to be very variable. The FRC hopes that the introduction into the Code of a section setting out the features of a clear explanation will improve the quality of disclosures in the future. There has been further improvement in the overall quality of reporting on principal risks and uncertainties, with the majority of companies attempting to explain their business model.

The FRC goes on to say in the Report that it is concerned about how to ensure boards and shareholders have sufficiently long-term focus; how to set executive remuneration in a way that is seen as fair reward for good performance and wider concerns about governance in the banking sector.

The FRC states that it will publish the 2012/2013 Corporate Reporting Review activity report in September 2013. There are three areas of focus for the FRC in the years ahead, namely, ensuring that the implementation of the new UK accounting standard is well supported, seeing quality being the watchword for international standards and seeing reports becoming easier to read.