Changes in disclosure of auditor remuneration
The Companies Act requirements in respect of disclosure of auditor remuneration are set to change for all UK companies (whether UK GAAP or IFRS preparers) for periods beginning on or after 1 October 2011. The changes relate primarily to the presentation and classification of the different categories of fees paid to auditors for non-audit services.
In order to assist companies in determining which services fall into which of the new disclosure categories the ICAEW has issued guidance in a technical release TECH 04/11 FRF "Disclosure of Auditor Remuneration". This guidance in available on their website (www.icaew.co.uk).
The new disclosure requirements can be adopted early.
Responding to increased country and currency risk
Prompted by the current economic uncertainties facing a number of countries around the world, the UK Financial Reporting Council (FRC) has published an update for directors of companies listed on the London stock exchange to assist them in responding to increased country and currency risk in their annual and half-yearly financial reports. The update aims to draw together a number of the more significant issues for directors to consider, including the impact of events on impairment testing, going concern assessments and the extent of appropriate disclosure.
While the update is aimed at directors of listed companies, its content will also be relevant to many other UK companies whose businesses have been affected by the ongoing unrest in the Middle East and recent events in the eurozone and who are required to report risks and uncertainties in accordance with the Companies Act.
The full text of the FRC's guidance can be found on their website at www.frc.org.uk/publications/pub2693.html.
Reporting on compliance with the Governance Code
For listed companies with a December year end, the annual report for the year ended 31 December 2011 will be the first annual report in which the company reports on its compliance with the UK corporate Governance Code (Governance Code) as opposed to the Combined Code. The Governance Code replaced the Combined Code for periods beginning on or after 29 June 2010 and applies to all fully listed companies with a premium (formerly primary) listing of equity shares in the UK.
While the Governance Code is very similar to the Combined Code there are a number of new provisions and disclosures which will require consideration when companies are drafting their corporate governance statement for inclusion in their annual report.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
