Financial Reporting Group Newsletter - Aug 22

01 August 2022      Alexander David, ICT Manager

This year has again been focussed on operationally responding to Covid19 and all the changes that has necessitated. Therefore, I am pleased to report it has been less changeable in relation to financial reporting. This newsletter is full of reminders and small tweaks that will improve financial statements, with no large changes applicable for the 21/22 reporting cycle.

This is the calm before the storm. We will see some significant changes in the next few years. BUFDG is looking at what reporting of sustainability might mean for our sector; whether we can suggest an approach on a proactive basis, rather than waiting for government or regulators to define the reporting for us. We anticipate an update to FRS102 which will result in changes to the SORP. The recently published responses from BEIS and the FRC to the consultation relating to restoring trust in audit and corporate governance will mean direct impacts for some in our sector; whereas for others we can expect to see amendments filter through via Accounts Directions and other guidance.

Covid19 has reminded everyone of the importance of cash to manage and sustain for the short and medium term. Finance functions have become more visible and hopefully also recognised for the work your teams do, day in day out, to keep things running as the world spins around them. The importance of the financial statements to tell the whole story of our operations has never been more prominent. Financial statements help users to understand the risks as reflected in judgements and assumptions, going concern and narrative disclosures and the ability of the balance sheet to mitigate against them. The use of financial statements by regulators, government, governors, suppliers, credit agencies, journalists, unions etc. should at least reaffirm the relevance of them and encourage us all to provide the best version we can.

This is my last newsletter as Chair of FRG, as I move into my new role as Chair of BUFDG. I leave you in the very capable hands of Mary White and the BUFDG team. Happy year end and audit season to you all.

Erica Conway, FRG Chair (FD University of Birmingham)

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