close
Share with your friends

FRC expects improved disclosures on effect of new standards

Commentary on FRC’s expectations on disclosures

IFRS 9 and IFRS 15 become mandatory for annual periods beginning on, or after, 1 Jan 2018. What impact do these new standards have on financial statements?

1000
Nick Chandler

Partner

KPMG in the UK

Contact

Also on home.kpmg

frc-expects-companies-to-improve-disclosures-before-new-reporting-standards-begin

IFRS 9 and IFRS 15 become mandatory for annual periods beginning on, or after, 1 Jan 2018. The Financial Reporting Council has reviewed what impact these new accounting standards have had on the disclosures companies have made in their financial statements before the new rules come into effect. 

The FRC found significant variations in the information companies offered, and an absence of informative disclosures. In particular, it noted a significant number of companies that didn’t offer qualitative disclosures, or disclosures tailored to their specific circumstances and transactions.

The regulator has said it expects companies to include detailed quantitative disclosures about the effects of the new standards in their last set of accounts before they are implemented. It encourages companies to provide informative disclosures by reference to their existing accounting policies, tailored to their specific circumstances and transactions, including any key judgements that management would need to make.

Such disclosures are useful to investors, but companies should ensure that their transition projects are sufficiently advanced to support the planned disclosure.

© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal