'Director know how' is a monthly article which highlights key rule changes, proposed changes and market updates so that you know what is coming down the track.
FRC and BIS issue statements on accounting standards
The Financial Reporting Council (FRC) and Department for Business, Innovation and Skills (BIS) recently issued statements on accounting standards, following concerns from some that accounts prepared in accordance with UK or international financial reporting standards have not be properly prepared under UK or EU law. The Government and FRC believe that these concerns are misconceived.
However, they note that the in preparing financial accounts achieving a true and fair view is the overriding objective – and in many cases this will be achieved by compliance with accounting standards. However, where compliance with an accounting standard would result in accounts that would be so misleading and not giving a true and fair view, the standard should be overridden.
GC100 and Investor Group publish guidance on directors' remuneration reporting
The GC100 and Investor Group has published guidance on the new directors' remuneration reporting requirements, which came into effect for listed companies on 1 October 2013. This includes the binding remuneration policy vote every three years, along with new reporting requirements such as the single total figure remuneration, payments for loss of office, performance graphs and tables, and more. The guidance aims to help companies implement the new framework and improve engagement between companies and investors.
Cyber security – an emerging new risk for businesses
The Government has been ramping up its efforts to make businesses aware of the increasing risk of cyber attacks. BIS has published guidance and advice on how to safeguard a company’s most valuable assets, such as personal data, online services and intellectual property from cyber attacks – all with the aim of getting board to start talking about this new business risk and how it could affect them.
There is also the Cyber-Security Information Sharing Partnership, which facilitates the sharing of information and intelligence on cyber security threats and includes a secure online collaboration environment where government and industry can exchange information on threats and vulnerabilities in real time.
Please let us know if you are interested in finding out more information about this emerging risk by emailing us.