The Financial Reporting Review Panel today published its annual report based on findings from the Panel’s review of reports and accounts in the year to 31 March 2011 in which:

• 301 sets of accounts were reviewed.
  
• 141 companies were approached by the Panel for further information or explanation.
  
• 4 companies were the subject of a Panel press release.

The Panel found the general quality of corporate reporting to be good. It continues to have concerns about the quality of reports and accounts of some smaller listed and AIM quoted companies where there is still room for improvement.

Narrative reporting was a key area of interest for the Panel during the year. Although some poor practice is still seen, the Panel was particularly pleased to note widespread improvement in the description of principal risks and uncertainties in the business review included within the directors’ report. Boards are also now more likely to describe the actions they are taking to mitigate the effects of risks and uncertainties which the Panel believes is required in order to satisfy the objectives of the review.

Commenting on the findings and recommendations, Bill Knight, Chairman of the Panel said:

“We are very pleased that descriptions of risks and uncertainties are improving. We are also looking to the balance and fairness of the business review – we applaud honest straightforward reporting which reflects the good and the less good aspects of the company’s performance.”