The Financial Reporting Council (FRC), the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance, has today published a report on its work in the April-June quarter of its 2008/09 year, together with expected developments in the current quarter.

Principal developments during the April-June 2008 quarter include publication of:

• A revised version of the Combined Code on Corporate Governance, incorporating changes agreed following the 2007 consultation on the impact of the Code.
• Guidance on Auditor Liability Limitation Agreements, to help companies and their auditors draft such agreements, as provided for in the 2006 Companies Act.
• Proposals for new funding arrangements for the FRC, following the decision of the Government in February 2008 that the costs of our core activities in accounting, auditing and corporate governance should be funded largely by market participants.
• Our annual report for 2007-08, and our Plan & Budget for 2008-09.
• Discussion papers on promoting actuarial quality and on the monitoring and scrutiny of actuarial work.
• An Opinion by Martin Moore QC that confirms the continued relevance of the ‘true and fair’ concept to the preparation and audit of financial statements following the enactment of the Companies Act 2006 and the introduction of international accounting standards.
• An update report on our Choice in the UK Audit market project, together with a discussion paper on the possible effects of changes to audit firm ownership rules, and a consultation on the use of audit firms from more than one network

In addition, the Financial Reporting Review Panel stepped up its work on company accounts in which the audit report is qualified. The FRRP wrote to more than 50 such companies, drawing attention to directors’ responsibilities under the Companies Act to prepare accounts that comply with the law and accounting standards. The FRRP said it would not take any action this year, but will review the accounts of all such companies next year, and will take appropriate action under its operating procedures.

Developments expected in the next quarter include:

• Progress on the FRC’s review of the complexity and relevance of corporate reports.
• Distribution to audit firms of reports on individual audits (which may be transmitted to clients) reviewed by the Audit Inspection Unit.
• Publication of a Conceptual Framework for actuarial standards.
• Further progress on the modification of the investigation and disciplinary scheme for accountancy.

FRC Chief Executive, Paul Boyle, said:

“This is the latest of our quarterly reports which is structured around the Strategic Framework we published in April 2007 and the major risks to confidence in corporate reporting and governance which we identified in our Plan & Budget for 2008/09. We have successfully completed a number of important projects carried over from last year, and I am pleased with the start we have made on the projects included in our Plan for 2008/09.“

1. The Financial Reporting Council (FRC) is the UK's independent regulator responsible for promoting confidence in corporate reporting and governance.
2. The FRC's functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy and Actuarial Discipline Board) and by the Board. The Committee on Corporate Governance assists the Board in its work on corporate governance.
3. The FRC published its Strategic Framework on April 30, 2007. It published its Plan & Budget for 2008-09 on 22 April, 2008.
4. All media enquiries should be addressed to Ian Rodger, Head of Communications, +44 (0)20 7492 2395 or email at: i.rodger@frc.org.uk