FRC Initiates Credit Crisis Project and Formation of Advisory Group

The Financial Reporting Council (FRC) has launched a project to examine the lessons to be learned from the credit crisis and other market developments as they impact corporate reporting, accounting and auditing of non-financial services companies. The FRC expects to publish a discussion document in the autumn.

To assist the FRC in identifying and evaluating appropriate issues, it has established a senior business and accountancy profession advisory group. The new group will advise the FRC on issues such as narrative reporting and the role of the auditor.

The advisory group comprises:

• Mark Armour, chief financial officer (CFO), Reed Elsevier.
• John Cridland, deputy director general, Confederation of British Industry (CBI).
• Steve Maslin, partner, Grant Thornton.
• Ian Powell, chairman and senior partner, PricewaterhouseCoopers (PwC) UK.
• Keith Skeoch, chief executive officer (CEO), Standard Life Investments.
• Lindsay Tomlinson, managing director, BlackRock.

The group met for the first time on 26 July.

Stephen Haddrill, CEO of the FRC and chair of the advisory group, said: “I am delighted that senior individuals from business and the accountancy profession have agreed to serve on this advisory group to help the FRC to identify key lessons from the financial crisis and the way markets are now developing. Our aim is to apply these lessons to the issues within the FRC’s remit and to consult on proposals for reform. It is time to get into the detail of the auditing, accounting and corporate reporting practices that need to be changed to enhance the relevance and value of information provided to the capital markets and the assurance given by audit.”

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