The Financial Reporting Council (FRC) has published its annual review of corporate reporting, which sets out the findings of its monitoring of UK companies’ annual report and accounts, alongside its expectations for the upcoming reporting period. The FRC was satisfied with the quality of reporting in the FTSE 350 and noted relatively few compliance issues reporting against the Taskforce for Climate-related Financial Disclosures (TCFD) framework. However, the FRC noted an increase in the number of restatements required in relation to impairment of assets and cash flow statements in companies outside the FTSE 350.

The Financial Reporting Council (FRC) has published its 2024/25 review of structured digital reporting, examining how UK listed companies present digital annual reports in iXBRL format. The review, which analysed reports from FCA-listed companies using CODEx project tools, identified persistent challenges in complex tagging aspects despite improvements in basic compliance. The FRC has announced enhanced monitoring procedures, including sample reviews and direct communication with companies showing significant tagging issues.

The Financial Reporting Council (FRC) has launched a consultation on proposed revisions to the Technical Actuarial Standard 300: Pensions (TAS 300). These amendments are designed to reflect recent developments in pension scheme funding and support practitioners working under the new defined benefit (DB) funding regime. The revisions include new provisions related to advice arising from improved funding levels of DB schemes. The FRC aims to ensure that actuarial advice remains responsive and aligned with the evolving landscape for DB pension schemes. Stakeholders are invited to review the consultation document and attend a webinar on 14 January 2025 to discuss the proposed changes. The consultation is open for feedback until 10 March 2025.

The Financial Reporting Council (FRC) has introduced the UK Stewardship Code 2026, setting out updated principles for effective stewardship and higher expectations of transparency for asset owners, asset managers and relevant service providers, following extensive consultation with more than 1,500 stakeholders to refine and focus the Code on stewardship activity and outcomes. Effective from 1 January 2026, the Code introduces a more flexible, proportionate reporting framework and designates 2026 as a transition year for existing signatories, who will remain on the signatory list if they submit a report during their usual application window and may use the year to adapt their reporting approach ahead of full assessment from 2027. New applicants in 2026 remain subject to a full assessment against the 2026 Code. All signatories must submit a self‑contained report comprising a Policy and Context Disclosure and an Activities and Outcomes Report, either separately or combined, with limited cross‑referencing permitted, and reporting may be structured narratively or by principle. The FRC confirmed application deadlines for 2026 and committed to providing ongoing guidance, feedback and engagement through publications, webinars and direct support to assist organisations in meeting the Code’s requirements.

The Financial Reporting Council (FRC) published its annual review of Corporate Governance Reporting, assessing 100 UK-listed companies against the 2018 UK Corporate Governance Code for the final time before transitioning to the 2024 Code. The review found that 25 companies disclosed deviations from Code provisions, most frequently concerning audit committee composition, the independence of the chair, and tenure. Notably, many companies provided substantive explanations for their chosen approaches. Additionally, over half of the companies referenced measures being taken to prepare for the new Provision 29 on risk management and internal controls, which will come into effect for financial years beginning on 1 January 2026.

The Financial Reporting Council (FRC) has published final revisions to ISA (UK) 620 on using the work of an auditor’s expert and ISAE (UK) 3000 on assurance engagements other than audits or reviews of historical financial information. The revisions maintain alignment with equivalent standards issued by the International Auditing and Assurance Standards Board and interoperability with the International Code of Ethics for Professional Accountants (IESBA Code), which introduced explicit ethical requirements for using external experts in audit, assurance and non-assurance engagements. The changes align definitions and responsibilities for using external experts and reinforce the need for robust evaluation and documentation. Revised ISA (UK) 620 is effective for audits of financial statements for periods commencing on or after 15 December 2026, while revised ISAE (UK) 3000 applies to assurance reports dated on or after that date.

The Financial Reporting Council (FRC) has published its final revisions to ISA (UK) 240 on auditors’ responsibilities relating to fraud and ISA (UK) 570 on going concern, following a public consultation and aligning the UK framework with updates made by the International Audit and Assurance Standards Board to maintain equivalence and support confidence in capital markets. The revisions to ISA (UK) 240 strengthen and clarify auditors’ duties in identifying and responding to fraud through enhanced risk assessment and greater transparency in audit reporting, particularly for publicly traded entities, while the changes to ISA (UK) 570 reinforce how auditors assess and report on an entity’s ability to continue as a going concern, reflecting lessons from recent corporate failures and heightened stakeholder expectations. As these enhancements were largely already embedded in UK practice, the FRC expects minimal additional work for auditors, and the revised standards will apply to audits of financial statements for periods beginning on or after 15 December 2026.

The Financial Reporting Council (FRC) has published its first guidance on the use of artificial intelligence (AI) in the audit profession, accompanied by a thematic review of certification processes and controls for technology and automated tools at the UK’s six largest audit firms. The guidance explains how AI can be used to enhance audit work and clarifies the FRC’s expectations regarding the proportionate and appropriate documentation of tools that use AI. It is intended to assist auditors and central teams at audit firms in developing and using AI tools, while also setting out regulatory expectations for third-party technology providers. The guidance is not prescriptive and does not introduce new regulatory requirements.

The Financial Reporting Council (FRC) has published its first review of company reporting under the Wates Corporate Governance Principles for Large Private Companies since assuming oversight earlier this year. The review underscores the framework’s flexibility, noting that its ‘Apply and Explain’ approach remains a key strength, enabling tailored disclosures while promoting transparency. The FRC found strong reporting on risk management and stakeholder engagement, but identified areas for improvement in purpose, board composition and remuneration. It encourages companies to adopt outcomes-based disclosures, improve clarity through cross-referencing and reduce duplication.

The Financial Reporting Council (FRC) has published guidance on the application of materiality in corporate reporting to support boards, preparers, investors and other users of annual reports. The guidance explains that materiality helps companies focus on information that is relevant to shareholders and other primary users while avoiding unnecessary disclosures. It emphasises that materiality is a matter of judgement for company directors and includes frequently asked questions and an illustrative process to help companies apply materiality when preparing annual reports. The guidance also explains that materiality applies throughout the annual report, with disclosure decisions taking account of the company's circumstances, the needs of primary users and both quantitative and qualitative factors. It addresses the application of materiality to climate-related disclosures, connectivity across reporting, the aggregation and disaggregation of information and the distinction between reporting and audit materiality. The guidance also outlines a six-step process to help companies identify, assess and present material information in annual reports.

The Financial Reporting Council (FRC) has published updated guidance to aid companies in their application of the UK Corporate Governance Code 2024 (the Code). This guidance does not form a substantive part of the Code, but aims to support companies in their application of the updated rules by giving further advice, detail and examples. Rather than imposing mandatory activities, the guidance intends to encourage collaborative discussion and decision-making in order for companies to successfully implement the Code’s principles.

The Financial Reporting Council (FRC) has published finalised guidance intended to support reporting under the UK Stewardship Code 2026.  The guidance, initially published in draft form in June 2025 alongside the updated Code, has been amended following stakeholder feedback received through a call for comments. The guidance is optional and non-prescriptive, providing suggestions on the types of information organisations may include in their reporting to explain their stewardship approach. It also offers suggestions for those managing asset classes beyond listed equity on how to report to the Principles of the Code. The guidance reflects the Code’s flexible approach, recognising that organisations vary in size, structure and investment strategy, and therefore apply stewardship in different ways.  Throughout 2026, the FRC intends to engage with signatories to support their transition to reporting under the updated Code.