Reporting issues for preparers in the 2021/22 season
Steven Brice, Chair of the Financial Reporting Faculty Board, reflects on key issues for the 2021/22 reporting season for IFRS reporters. Perhaps it won’t be so quiet after all?
With only a few amendments to existing IFRS standards and no new standards applicable for accounting periods beginning on or after either 1 January 2021 or 2022, there is a real danger that companies fall into a false sense of security that it is ‘business as usual’ with regard to their year-end financial statements. For many entities, I would suggest it is far from business as usual, as there are complex amendments, new interpretations, increased regulatory focus and a plethora of best-practice guidance for boards and finance teams to consider. Investor expectations are almost certainly increasing and now is the time to seize upon the opportunities that quality financial reporting can bring to businesses.
Undoubtedly, the pendulum has swung towards the narrative reporting aspects of financial reporting in recent years and there is a clear need for enhanced disclosure on ‘front-end’ reporting matters. Investors and other stakeholders are looking for meaningful and transparent disclosure on important topics. Boards are therefore encouraged to ensure that disclosure considerations do not simply ‘slip through the net’ for another reporting season when finalising their annual reports.