The FRC’s Supervision Corporate Reporting Review team will supplement its routine reviews of corporate reporting with six thematic reviews. These reviews will identify scope for improvement, as well as examples of better practice, in areas of key stakeholder interest.


Thematic reviews of corporate reporting
The Corporate Reporting Review team will conduct six thematic reviews during the next year:

  • TCFD Reporting and Climate-related Reporting in Financial Statements: In collaboration with the FCA, the FRC will perform a thematic review of TCFD disclosures provided by premium listed companies in response to the new Listing Rule, and of the extent to which the financial statements reflect the impact of climate change.
  • Business Combinations (IFRS 3): The FRC will undertake a general thematic review of accounting issues under this standard and identify examples of better practice.
  • Earnings per Share (IAS 33): Miscalculations of EPS can result in material errors on the face of the income statement. 
  • Deferred Tax (IAS 12): There will be a particular focus on disclosures around deferred tax assets and whether the evidence supporting the recognition of deferred tax assets for losses is sufficiently robust.
  • Discount Rates: The FRC's review will provide an overview of the requirements of IFRS in respect of discount rates and will highlight some of the difficulties companies encounter in determining appropriate discount rates to apply in the measurement of assets and liabilities.
  • Judgements and Estimates: The FRC will specifically look at (i) disclosures around sensitivities and ranges of outcomes and (ii) disclosures involving judgements and assumptions made in estimating mineral reserves.

Corporate reporting reviews and Audit quality inspections

In selecting corporate reports and audits for review, the FRC will prioritise sectors that are under particular pressure by virtue of economic or other pressures, including Travel, Hospitality and Leisure, Retail, Construction and Materials, and Gas, Water and Multi-utilities

The FRC's Supervision programme of audit quality inspections will pay particular attention to the auditor’s work in areas Revenue, Fraud and Climate-related risks among others.

  • Fraud risks
  • Cash and cash flow statements
  • Provisions and contingent liabilities
  • Impairment of assets
  • Revenue
  • Group audits


These are areas of investor/public concern and/or heightened risk areas giving rise to recurring findings in audit inspections; findings of cross-firm Supervisory reviews; and findings arising from recent FRC Enforcement cases.

Further details can be viewed online.