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FRC issues advice to improve companies’ ‘comply or explain’ reporting Logo cgma

  Oliver Rowe |   Free |   Mar 2021 |   FM magazine

The UK’s Financial Reporting Council issued advice for companies on how to report transparently and effectively when departing from parts of the UK Corporate Governance Code.

Topics covered:
  • Management accounting: Technical: Financial accounting & reporting: Financial reporting & compliance, Advanced
  • Management accounting: Technical: Risk management & internal control: Risk identification & assessment, Advanced

1 Comments/Reflections

Alex McMillan

Alex McMillan May 2021

What competencies did I develop and what can I do now that I could not before?

This article Gives an easy to follow breakdown of how non compliance should be reported. I also learned that it can be better to report non compliance than do a tick box exercise which allows you to say you have complied but is, in reality, meaningless. For example it is better to report non compliance with regards to the number of non-executive directors than to recruit qucikly but potentially recruit the wrong candidate who does not have the necessary skills and/or experience for the role.

Did you meet your objective?
Yes however if and when i am involved in a situation where I have to report on annual governance I would reread the article and ensure I read more recent articles to ensure I was up to date with expectations.

What will be the wider impact for your team, your organisation and your own career?
Whilst I currently work for a company which does not need to report on corporate governance I would feel more confident in approaching it if I moved roles to a different company. I also understand that whilst the reporting of corporate governance is not mandatory where I am, the principles of corporate goverance are still relevant.