We’ve switched our classes to live online. For more Covid-19 updates, click here

Tax transparency in listed companies' annual reports encouraged by FRC

Tax transparency in listed companies' annual reports encouraged by FRC

The Financial Reporting Council (FRC) has said that UK listed companies should be clearer about their tax reporting to ensure that it is done as transparently as possible.

They recommended that the link between accounting profit and tax paid should be a part of a company’s annual reporting process. This should be presented in a way that helps others understand how the relationship between the two could change.

Thematic review

The FRC has announced a thematic review, and will be writing to a number of companies on the FTSE350 stock exchange to let them know it will review their next published reports.

The International Accounting Standards (IAS) and UK corporate reporting rules both require that companies disclose the main risks and uncertainties on their books, as well as the contingency plans in place to mitigate any potential negative impacts.

The FRC said that "the current interest in certain international tax treaties" was one of the main reasons for the new review.

Considerable public interest

Chair of the FRC's Financial Reporting Review Panel and a member of its conduct committee, Geoffrey Green, said: "There is considerable public interest currently in international tax arrangements, prompted by developments both in the UK and on a global basis."

He added: "Investors have a heightened interest in wanting to understand the policy decisions made by companies and the impact these have on their current and future accounts."


Other News

ACCA and CIPM of Nigeria sign a collaborative agreement

According to a recent article by The Guardian earlier this month, the Association of Chartered Certified Accountants (ACCA) and the…

AAT achieve KHDA recognition

We are excited to announce that AAT has been officially recognised as an International Certification Organisation by the Knowledge and…

LSBF Professional Qualifications Campus Re-opening from 1 September

We’re excited to announce that from Tuesday 1 September, our doors will be reopening to students, and we have put…

Back to top