The Financial Reporting Council (FRC) is intending to conduct a thematic review of companies’ tax reporting to encourage more transparent recording of the relationship between the tax charges and accounting profit. The FRC will be writing to a number of FTSE 350 companies prior to their year-end, informing them that a review will be carried out of the tax disclosures in their next published reports.
Geoffrey Green, chairman of the FRC’s financial reporting review panel and member of the conduct committee, said: ‘Investors have a heightened interest in wanting to understand the policy decisions made by companies and the impact these have on their current and future accounts. Through the FRC’s Clear & Concise initiative, the FRC aims to stimulate boards to review their tax disclosures to ensure their annual reports provide high quality information for investors. Consistent with its overall objective, the FRC will consider how to publically share the best of what is seen to help others raise the quality bar on this aspect of their reporting.’
The Financial Reporting Council (FRC) is intending to conduct a thematic review of companies’ tax reporting to encourage more transparent recording of the relationship between the tax charges and accounting profit. The FRC will be writing to a number of FTSE 350 companies prior to their year-end, informing them that a review will be carried out of the tax disclosures in their next published reports.
Geoffrey Green, chairman of the FRC’s financial reporting review panel and member of the conduct committee, said: ‘Investors have a heightened interest in wanting to understand the policy decisions made by companies and the impact these have on their current and future accounts. Through the FRC’s Clear & Concise initiative, the FRC aims to stimulate boards to review their tax disclosures to ensure their annual reports provide high quality information for investors. Consistent with its overall objective, the FRC will consider how to publically share the best of what is seen to help others raise the quality bar on this aspect of their reporting.’
