Financial Reporting Council publishes Annual Report for 2013/14

News types: Generic Announcement

Published: 16 July 2014

PN 41/14
In its Annual Report for 2013/14 (PDF) the Financial Reporting Council (FRC) outlines its achievements and challenges over the year.  This is the first FRC Annual Report to be based on the new framework for the Strategic Report and includes its first financial statements prepared in accordance with the new UK Generally Accepted Accounting Principles (UK GAAP).

Sir Winfried Bischoff, Chairman of the FRC, said:

“The FRC has focussed its authority and resources on the contribution that high quality corporate governance and reporting can make to the effective functioning of the capital markets and to economic stability and growth. Trust is only achieved through a shared belief that there is a strong public interest in sound governance, active stewardship and fair, balanced and understandable reporting.

The FRC’s effectiveness depends on its relationship with stakeholders, especially the investment community, directors, and those it regulates. While the FRC evolves, I am extremely grateful to those stakeholders who continue to provide input to its aims and extensive information about the impact of potential changes to regulation.”


Among its achievements the FRC has made good progress in making audit more integral to corporate governance and has seen a positive response to its efforts to promote audit re-tendering. The new EU Audit Regulation and Directive reflects a great deal of work by the FRC to ensure UK audit regulation can remain effective and proportionate.

Areas the FRC will continue to address in 2014/15 include:

  • Implementation of aspects of the EU Audit Regulation including reviewing auditor independence requirements.

  • Completing a review of the quality of auditing of banks and building societies.

  • Implementation of Lord Sharman’s recommendations on going concern reporting.

  • Promoting clarity and concision in corporate reports.

  • Promoting improvements in the quality of reporting by smaller listed and AIM quoted companies.

  • Influencing international prudential regulators in financial services, particularly as they grapple with tensions between reporting by banks and the risks of that to market stability.

Notes to editors:

The FRC is responsible for promoting high quality corporate governance and reporting to foster investment.  We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.

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