FRC comments on agreement on new non-financial reporting requirements for European Companies
News types: Response
Published: 28 February 2014
Following the agreement in Brussels , FRC CEO Stephen Haddrill said:
"The FRC welcomes these changes which will give investors greater transparency on environmental, social, employee, human rights, anti-corruption, bribery and diversity matters.
The FRC believes that limiting the directive to large public interest companies avoids potential regulatory burden on smaller business, which, in combination with the comply or explain mechanism and materiality requirements, will avoid increased clutter in the financial statements.
The FRC recently issued for consultation draft Guidance on the Strategic Report which encourages companies to facilitate communication and engagement with investors by publishing more relevant narrative reports. The new non-financial reporting proposals bring into EU legislation much of the recognised UK framework reinforced by the Strategic Report regulations."