Financial and corporate reporting updates
Whenever a new IFRS accounting standard is introduced “the devil is in the detail” is an oft-repeated refrain and usually with good reason. It is arguably just as true of IFRS 18 Presentation and Disclosure in Financial Statements (effective for periods beginning on or after 1 January 2027) as it is any other accounting standard issued in recent times.
The Financial Reporting Council (FRC) has published insights and guidance on the application of materiality in corporate reporting.
Pressures around cyber resilience are not new for insurers. This is because firms’ vulnerability to cyber-attacks comes not only from the sensitive data that they hold, but also from the growing cyber insurance business line.
As Artificial Intelligence (AI) adoption continues to grow in the Insurance sector, firms need to be prepared for possible changes in the corporate reporting environment.
Businesses in the UK are navigating constant change. With new regulations, shifting markets and increasing stakeholder pressures, the annual audit cycle can easily become a once a year afterthought.
Going through a statutory audit for the first time is a significant milestone. For many, the process will feel unfamiliar and at times, overwhelming. But with the right preparation, a statutory audit becomes a valuable step forward rather than a disruptive obstacle.
The FCA has issued a consultation proposing that UK-listed companies will be required to report under UK SRS, the UK’s adaptation of the International Sustainability Standards Board’s (ISSB) standards from 2027. UK SRS currently consists of two standards: SRS S1, which covers general sustainability requirements and SRS S2, which is specifically on climate risk.
Amendments to FRS 102 Section 23 Revenue from Contracts with Customers are hugely significant for companies entering long‑term contractual arrangements. As the UK and Irish GAAP revenue‑recognition standard, Section 23 requires revenue to be recognised in a manner that reflects the transfer of goods or services to customers.
For the last few years, insurers have operated within a relatively stable financial reporting environment. That stability is set to shift. The future of insurance reporting will be shaped by new accounting standards and an evolving risk landscape, both of which are expected to drive meaningful change across the industry.
With the implementation of FRS 102 now underway, many organisations find that challenges lie not just in the technical accounting but also in ensuring the project moves smoothly without unnecessary delays.
IFRS 17 ‘Insurance Contracts’ post-implementation review and IFRS 18 ‘Presentation and Disclosure in Financial Statements’ implementation are fast approaching, and pressures around cyber resilience, AI adoption, and climate-related disclosures continue to grow. Together, these shifts are reshaping how insurers explain performance, manage risk, and meet rising regulatory and stakeholder expectations.
The International Accounting Standard Board (IASB) has published proposals to replace existing IAS 39 macro-hedge accounting requirements and intends to withdraw IAS 39 in its entirety. In addition new disclosure requirements about interest rate management activities are being proposed to be mandated.
The UK Government has announced the endorsement of the UK version of the IFRS Foundation’s Sustainability Reporting Standards (UK SRS) with immediate effect. This will provide a framework for companies to report on a voluntary basis. This sits alongside the FCA’s consultation to finalise UK Listing Rules around the mandatory adoption of UK SRS S2 to replace TCFD.
In a busy period over the summer, we have responded to a series of much anticipated consultations by the UK government and FRC regarding sustainability reporting and assurance, covering endorsement of reporting and assurance standards, requirements around transition plan reporting and early ideas for an assurance oversight regime for sustainability assurance.
Investors and other stakeholders want to understand how cyber and other digital risks affect an organisation and the governance processes in place to manage these risks. We provide top tips for effective reporting on cyber risks by financial institutions in their annual report and accounts.
Our monitoring trustee team contributed a chapter to the Sixth Edition of Global Competition Review’s Merger Remedies Guide, titled “Overcoming hurdles: insights from a monitoring trustee on effective divestiture implementation”.
In today's unpredictable economic landscape, businesses are not just grappling with slow growth, high interest rates and geopolitical uncertainties - they are navigating a minefield of financial decisions that could make or break their future.
A lease is a legal or contractual arrangement in which the owner of an asset grants the use of that asset to another party in exchange for some form of remuneration. Under the Financial Reporting Council (FRC) amendments to FRS 102, the definition of a lease has changed and given the changes to lease accounting, lease classification is more critical than ever.
The Financial Reporting Council (FRC) has issued comprehensive improvements to FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. These include amendments to Section 20 Leases, which will be effective for periods beginning on or after 1 January 2026.
The Financial Reporting Council (FRC) has made changes to Section 23 Revenue, as part of its improvements to FRS 102. These changes will take effect for periods starting on or after 1 January 2026.
FRS 102 is the principal financial reporting standard for entities in the UK and the Republic of Ireland, which is applicable for small, and medium and large-sized enterprises that do not apply IFRS or FRS 101.
The UK government has introduced the Economic Crime and Corporate Transparency Act to strengthen corporate transparency and combat economic crime. This Act establishes a comprehensive framework aimed at enhancing corporate governance and accountability across the board.
As we progress through 2025, the interim reporting season becomes increasingly critical. Our overview delves into the evolving macroeconomic landscape and significant legal and accounting updates, focusing on their implications for the interim statements that businesses must prepare.
Entering an audit without proper preparation can lead to significant delays and increased costs, putting unnecessary strain on your finance team. With evolving financial reporting standards and a growing emphasis on documentation quality, ensuring your business's audit readiness is more crucial than ever.
In December, the government published new legislation to change the thresholds of a company to take effect for accounting periods commencing from 6 April 2025.
In the ever-changing business landscape, we uncover what is new in front-end annual reporting, the greater focus on smaller companies by the CRR and what’s changed in climate reporting.
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