The Financial Reporting Council (FRC) has published its Annual Review of Corporate Governance Reporting 2024, providing important insights as companies prepare to implement the revised UK Corporate Governance Code from January 2025. The review provides an overview of corporate governance reporting based on the annual reports of a sample of 100 randomly selected FTSE 100, FTSE 250 and Small Cap companies that follow the UK Corporate Governance Code. However, given the focus this year on risk management and internal control, the FRC have examined this area in more depth and considered the annual reports of 130 companies.
The FRC stated “ As companies prepare for the transition to the 2024 Code, we’re seeing positive signs in outcomes-focused reporting and risk disclosures practices. However, the review identifies clear areas for improvement, particularly in internal controls reporting and the quality of explanations when companies depart from the Code.”
The FRC has also published a series of podcasts relating to key aspects of the revised code to support stakeholders. In these podcasts, the episodes focus on; outcomes-based reporting, comply or explain optionality, audit committee minimum standards, diversity, and culture.
A link to our summary on the review can be found HERE and a link to the full report on the FRC website can be found HERE.
If you would like to discuss anything mentioned above or find out more, please do not hesitate to contact us.
