From 1 January 2023, all ICAEW members will be able to access the content of certain faculties – including the Financial Reporting Faculty – as part of their ICAEW membership. In anticipation of these paywalls tumbling down, we met Nigel Sleigh-Johnson, Director, Audit and Corporate Reporting, and Iain Wright, Managing Director, Reputation and Influence, to talk about what the future holds for the faculty.

But before looking to the future, we took the time to reflect on the formation of the faculty, its role and what it has achieved to date.

Sleigh-Johnson – who, alongside Marianne Mau, ICAEW’s Head of Corporate Reporting Strategy, was instrumental in the formation of the faculty – begins by explaining how and when it was set up: “By the mid-noughties, ICAEW already had faculties dedicated to audit, tax and other disciplines. But there was nothing focused specifically on financial reporting. This meant there wasn’t always enough guidance and support for members in this area, so something had to change. A lot of work was done developing the faculty’s offering in 2007/08 before it was launched in January 2009.”

He went on explain that the faculty had always wanted to offer something unique: “We saw ourselves as different from the start. Our aim was to be an international faculty that was digital from day one. Consequently, we were very innovative – we may take things like webinars, apps and social media content for granted now, but back then we were blazing a trail as the first truly online faculty. We launched a suite of pioneering products, such as our highly praised factsheets – complete with links to online versions of standards and other relevant resources – that provided members with a high degree of clarity. The factsheets remain part of our offering today and have truly passed the test of time.”

The world of financial reporting is, of course, always changing and the faculty has helped members cope with many significant challenges over the years. As Sleigh-Johnson explains: “Our strapline has always been to provide practical help in a complex world, and we believe we have delivered on it. Over the years, we have provided our members with the practical guidance they needed to cope with big issues, such as the transition to new UK GAAP and the implementation of major new IFRS Accounting Standards on financial instruments, leases and revenue recognition.

“More recently, we provided our members with a range of material to help them understand how the pandemic impacted on financial reporting. This is something I’m very proud of because our team showed great agility and adaptability as they pulled together in difficult circumstances to produce some fantastic resources.

“Bringing things right up to date, our current focus is increasingly on sustainability reporting and helping members understand what needs to be done to ensure they make appropriate climate-related financial disclosures.”

But the faculty isn’t just about helping members keep up to date and understand the implications of new requirements. It also seeks to inform and influence regulators and standard-setters on financial reporting questions.

Over the years, the faculty has published a number of insightful reports on emerging issues. Sleigh-Johnson explains: “The faculty has built a formidable reputation when it comes to thought leadership. Our 2015 report on the lessons learned from the implementation of IFRS in the EU was hugely influential and had a significant impact on jurisdictions around the globe considering the move to international standards. More recently, reports on measurement in financial reporting and what’s next for corporate reporting have proved equally as impactful.”

He is also keen to emphasise the importance of another aspect of the faculty’s influencing activities: “The faculty also spends a lot of time responding to consultations issued by standard-setters, regulators and the government. We talk to members, gather their views and input to the formal consultation process. In doing so, we make sure that our members are listened to at every step along the way. A lot of this policy work goes on behind the scenes. It isn’t always noticed, but the faculty does a lot of excellent work influencing policymakers and shaping the future standards that members will need to understand and implement.”

The faculty has clearly achieved a lot over the years. But a fair part of its offering has only ever been open to fee-paying faculty members. That is, however, about to change as ICAEW members will no longer have to pay an additional fee to access the faculty’s content from 1 January 2023.

Wright explains why this change is being made: “As you may know, ICAEW was founded by a Royal Charter that was originally awarded in 1880 and substantially amended in 1948. The first objective in the latest version of the charter is ‘to advance the theory and practice of accountancy, finance, business and commerce in all their aspects’. The work of the faculty is clearly intrinsic to achieving that objective – whether through influencing what’s coming down the line or providing practical help to practitioners and preparers when the future arrives.

“But if we are to truly deliver on that objective – in a world where nobody is keen to pay for extras over and above a subscription – and we wish to be clear about a strong value proposition, we need to bring down the paywalls. We want to ensure all ICAEW members have access to the information they need when they need it, as part of an all-inclusive package that is easy to manage and understand.”

He continues: “The importance of providing wider access to what the faculty does was reiterated during COVID-19, when our members looked to us as the North Star that would offer them direction and tell them what they needed to know in a crisis situation. The resources that Nigel mentioned earlier focusing on the impact of the pandemic were made available to all, free of charge, and the level of engagement was unprecedented. The desire to see more member engagement on an ongoing basis is also part of why we decided to bring down the paywalls.”

Wright firmly believes that increased member engagement is key to growing ICAEW’s future influence, explaining: “ICAEW offers a strong and highly renowned qualification. But member engagement clearly can’t and shouldn’t stop when you qualify. Giving our members unfettered access to our great range of technical, thought leadership and policy work in key areas such as financial reporting, tax and audit really enhances our value proposition. It also creates a virtuous circle as better, broader engagement with our members further enhances everything we do, resulting in more successful outcomes for our members and indeed the country as a whole. This in turn will further build our reputation, encouraging more members to become actively involved – and so the cycle continues.”

Wright goes on to explain that the post-pandemic world provides the faculty with a great opportunity to engage with members in ways that were not possible previously: “Much of what the faculty has achieved is based on our talented staff team working closely with volunteers who are willing to give their time and insights – a powerful combination of skills that isn’t replicated elsewhere. In the past, however, we have largely relied on volunteers from big London-based firms. But things are changing. The pandemic showed that you don’t have to have meetings in person. Everyone is used to talking on Teams and Zoom now, so we don’t have to rely on people taking time out of their busy schedule to come to London for meetings, which opens things up to members around the country.

“Moreover, taking down the paywalls should enable small practitioners and those working in smaller businesses who felt they couldn’t afford to pay more for faculty membership previously to now get involved in what the faculty does and add their distinctive voice to the debate. Our members have so much to contribute – the more we can get them involved, the better.”

Wright is keen to emphasise the benefits of remaining a member of the faculty: “I strongly recommend that you register as a member of the Financial Reporting Faculty and other faculties or communities that are relevant to your interests and your career. Faculties are not being dismantled and their governance, which has provided strong value, will continue. Becoming or continuing as a member of a faculty will ensure that you continue to be a member of a network of like-minded professionals, to receive tailored push notifications about matters of interest to you and to benefit from discounted rates for certain events.”

Sleigh-Johnson echoes what Wright says, adding: “There are lots of things in the pipeline that will keep us all busy – including the upcoming periodic review of UK GAAP, the ongoing Companies House reforms and the ever-increasing focus on sustainability and climate-related disclosures. The current economic climate and the ongoing recession adds another layer of uncertainty. Our members will certainly have plenty to think about in the months and years ahead.”

Wright concludes by focusing on the bigger picture: “Perhaps the most important thing about continuing to be a member of the faculty is that you’ll have the opportunity to be part of that virtuous circle I spoke about earlier. You’ll be able to use your skills and insights to help us improve our technical guidance and contribute to the debate on the issues Nigel has mentioned – and much more besides.”

We close by asking our interviewees to tell us where they think the faculty will be in 2030 when we celebrate ICAEW’s 150th anniversary.

Wright tells us: “Corporate reporting is the beating heart of the profession. In fact, it is vital to the whole capitalist ethos as investors need good information to make informed investment decisions. The faculty will continue to have a key role to play in ensuring that our members have the right skills and experience to provide the information that helps support those decisions.”

Sleigh-Johnson agrees with this wholeheartedly, adding: “We have long been the first port of call for members looking for help and guidance. We want that to continue in the same vein as corporate reporting develops – regardless of whether members are interested in traditional financial reporting issues or emerging sustainability-related disclosures. We will, of course, also continue to work hard to actively influence regulators and standard-setters and hold them to account as they develop their policies and standards.”