The FRC has issued some more guidance for directors. It arrives just before the reporting season starts, so I suppose there's still time for directors to take this advice on board.

It recommends that directors should consider, where relevant:

• The company’s exposure to country risk, direct or to the extent practical indirect through financial instruments but also in terms of exposure to trading counterparties (customers and suppliers);
• The impact of austerity measures being adopted in a number of countries on the company’s forecasts, impairment testing, going concern considerations, etc.;
• Possible consequences of currency events that are not factored into forecasts but may impact reported exposures and sensitivity testing of impairment or going concern considerations; and
• A post balance sheet date event requiring enhanced disclosures to avoid misleading investors.

As tends to be the case with these publications, the FRC has found the right sort of balance between providing helpful stuff that directors will be able to pick up and use and teaching gramma to suck eggs.

Download your own copy here.

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Filed under: Accounting with tags austerity, currency, directors, financial reporting council, going concern, post balance sheet events