The Financial Reporting Council's Annual Review (2025/26) recognises continued high standards of corporate reporting.
The review found that the quality of corporate reporting by FTSE 350 companies has been maintained, while the gap in quality between larger listed companies and other companies is narrowing. The proportion of FRC reviews leading to substantive enquiry letters also fell for the second consecutive year, reflecting a positive trend in reporting quality across the FRC’s risk-based sample.
The review identifies cash flow statements, financial instruments, impairment of assets, fair value measurement and revenue as the most common areas where substantive questions were raised during the year. To address these issues, the FRC encourages companies to ensure that robust review processes are in place to identify common technical compliance issues and that reporting is presented through a consistent, coherent and understandable narrative across the whole annual report and accounts.
By promoting examples of good practice, sharing insights across the market and challenging companies where reporting falls short of required standards, the review seeks to uphold high standards of corporate reporting and maintain investor confidence in UK businesses.
Looking ahead, the FRC highlights the need for companies to prepare for significant forthcoming reporting developments, including implementation of IFRS 18, revisions to FRS 102 and the introduction of Provision 29 of the UK Corporate Governance Code relating to material internal controls.
“Good reporting is about more than compliance. By providing investors with clear information about a company's strategy, risks and financial performance, high-quality corporate reporting supports informed investment decisions, strengthens trust in markets and contributes to long-term UK economic growth. This review shows encouraging signs of progress in reporting quality, and we will continue to combine risk-based supervision with constructive engagement to further promote high quality reporting in the years to come.” – Anthony Barrett, Executive Director of Supervision
Learn More:
Read the full review here.