Corporate governance insights library
Looks at key issues impacting business today, and how these are reflected in annual reporting.
Key themes covered in the report include:
Looks at how annual reporting is evolving to meet investors' needs. It covers five key themes that have been hot topics in corporate governance and reporting over the last year:
Highlights trends, developments, and opportunities for improving annual reports and accounts (ARAs) in order to better communicate with the investor community. Read more about the report and find links to video interviews with Sue Harding, Director of the Financial Reporting Lab at the FRC, on the topic of annual reporting.
Provides insights about how companies have addressed regulatory and legal changes, and highlights how they can build on the foundations of 2013 and do things better in 2014 (and beyond) using practical, actionable guidance.
Strategic report for private companies
Examines the impact of Strategic Report regulations for a private company and provides practical guidance for private companies to help them comply with the regulations and enhance the quality of their Strategic Reports.
Meeting the fair, balanced and understandable challenge
Represents our own judgment of what makes for FBU reporting. Though not scientific, it offers insight for companies in terms of what they can do to enhance FBU in their reporting, to comply with the new requirements and also to enhance communication with shareholders.
We reviewed the most recent ARAs of a few listed companies across a range of sectors, assessing key sections for their ease of understanding. We also attempted to assess the ARAs for their fairness and balance, whilst recognising that only company boards and management can truly judge this. We identified FBU indicators, drawing both on FRC publications and our own experience.
Provides some practical guidance and considerations to help companies consider the requirements of the revised UK Corporate Governance Code for:
AGM Trends 2017
This report, produced in collaboration with Equiniti, looks at trends and developments during the 2017 AGM season, and highlights some considerations to bear in mind when planning 2018 AGMs. Topics include:
It also includes a case study on electronic AGM, which summarises legal issues to note for companies who are considering holding an electronic AGM.
Examines the impact of new information required in corporate reporting, looks at future developments which point to boards and investors having to up their game even further on how they effectively engage with each other and also highlights potential questions that investors could ask enabled by new and enhanced ARA disclosures.
Corporate reporting changes which have been in the pipeline for several years have now become a reality. Annual reports and accounts of quoted companies will contain new information to comply with various codes and legislation – all introduced post the financial crisis to enhance corporate governance, stewardship and reporting.
The key question that now remains is whether the new information will be used by shareholders to further fulfil their stewardship role. Or could a lack of engagement lead the UK further down the path of more prescriptive regulation?
Future of governance
This document summarises headline proposals from the government's response to reform to the UK's corporate governance framework as announced on 29 August 2017.
Based on a series of roundtables with FTSE 350 company secretaries to discuss how boards are responding to the accelerated pace of change in the world and business environment, driven by technology, globalisation and public opinion.
Last year, most companies considered it too early to provide any specific commentary in their periodic reporting on Brexit’s impact. Some referred to the uncertainty it had caused, but many stayed silent.
Since then, Article 50 has been triggered, and on 29 March 2017, the UK Government duly gave the requisite notice, initiating the two year process for the UK to leave the EU. Companies planning their 2017 interim financial statements or Annual Report and Accounts will need to consider the implications of this. We summarise the key requirements and guidance sources audit committees and preparers should consider.
This guide can be used by audit committees (ACs) to assess their performance and effectiveness. It takes into account the latest UK regulatory updates – primarily arising from the EU Audit Reforms – to the UK Corporate Governance Code, the FCA’s Disclosure and Transparency Rules, and the FRC’s Guidance on Audit Committees.
While primarily intended for UK premium listed companies, it may serve as a useful source of reference for other UK listed plcs.
Key features include:
Summarises the key implications for audit committees under key headings with some practical questions. The rules are still being interpreted and further interpretative guidance or clarification may be issued by various bodies, however, this will provide a useful starting point to have discussions with your client's and target's audit committees.
A guide and tool to help audit committee assess and report on the effectiveness of the external audit process. This tool takes into account the FRC’s guide Audit Quality: Practice Aid for Audit Committees issued in May 2015.
Key features include:
Helps boards and committees address the impact of organisational culture by providing questions that can be used to ensure that a consideration of culture is embedded in their decision-making and oversight.
Produced in partnership with ICSA: The Governance Institute, focuses on the role of the nomination committee and how boards can improve their work.’This report follows our 2015 report Board effectiveness – continuing the journey produced with The Investment Association in which we started to examine key themes such as succession planning and talent management.
Risk and viability
Analyses the first batch of annual reports required to comply or explain under the 2014 UK CG Code provisions on risk and the viability statement. The report is based on a sample of 14 annual reports. This publication contains:
A thought leadership report for companies preparing to comply with the latest UK Corporate Governance Code changes in relation to risk, internal control and the viability statement. The report:
Also read our October 2015 report on this topicpublished by EY's risk team.
Board effectiveness – continuing the journey
Based on a series of individual meetings and roundtables which brought together leading chairmen, board directors and senior investors to debate the issue of board effectiveness. The report draws on the contributions from these discussions, and is supplemented by insights and perspectives from EY and The Investment Association.