Financial Reporting Council Circulated Update Regarding the Directors of UK Listed Companies
In the UK, the FRC has circulated an additional update for the directors of listed companies to provide the assistance to the FRC about the continued economic uncertainties which are facing by a number of countries around the world.
The purpose of this update is to draw the number imperative issues which the directors may consider in formulating interim reports, given the heightened country and currency risk.
The features of the update which are provided by the FRC are as follows:
· Directors Consider or measure the austerity impact being adopted by a number of countries on the companies impairment testing on goodwill and other assets ,forecast or projections and going concern considerations
· Consider the Factors which affect the reported exposures and sensitivity testing of impairment or going concern considerations and also measure the possible consequences of currency which can effect on the forecast
· Event after the balance sheet date that require an additional disclosure requirement and must have to be inform the investors and other users.
· Directors must also consider the company’s exposure risk to the financial instruments through foreign operations and through exposure to trading counterparties that are customers and suppliers.