Accounting regulators want companies to tell the story behind their financial statements.

Britain’s accounting regulator released last week plans to force UK firms to make more detailed anti-corruption disclosures in their financial statements.

The Financial Reporting Council (FRC) published a consultation on amending guidelines previously issued in 2014 that stipulate what should be in the narrative section of annual reports.

The watchdog wants firms to “tell the story” behind profit and loss accounts and balance sheets.

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The decision to have a code of standards was made after last year’s BHS scandal, when hundreds of staff lost their job and the pensions of retired workers were jeopardised while the owners initially seemed unscathed. (Source: The Times)

The proposed amendments… encourage business to consider the impact of their activities on stakeholders and the factors that contribute to the success of the company over the longer term.

The proposals will make large companies bulk up detail on “environment, employees, social matters, respect for human rights and anti-corruption and anti-bribery matters”.

The consultation closes on 24 October.

The FRC is a UK beancounting watchdog and it”s mission statement aims to “promote transparency and integrity in business”. The FRC’s mission recognises that investor confidence flows from trust in business. Successful and sustainable businesses support society by providing jobs, contributing to economic growth and helping to create prosperity in the UK. (Source: City A.M.)

Related: The FRC clarifies what it does by revamping its mission statement

Source: City A.M.

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