Financial reporting errors: What you need to know

In the first of a series of three articles, Steve Collings highlights some key issues from the Financial Reporting Review Panel’s latest report on errors made in companies’ reports and accounts.

In September 2012, the Financial Reporting Review Panel (FRRP) issued their annual report outlining their conclusions on the accounts they have inspected. The scope of the FRRP is to ensure that the reports and accounts published by public and large private companies comply with the requirements of Companies Act 2006, which also includes applicable accounting standards.

The vast majority of accountants will deal with smaller clients in the SME sector, but the report issued by the FRRP can highlights some of the problems faced by the larger practices with their large clients. While many accountants primarily deal with SME-based clients, many firms do have larger firms on their books and the findings of the FRRP can be a helpful insight into issues which they have found, which may flag up issues in other firms to help during any QAD or monitoring visit.

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  • Directors’ reports and business reviews
  • Clutter issues
  • Accounting policies
  • Items in other comprehensive income
  • Disaggregation
  • Netting off
  • Cash flow statement
  • Income tax

Continued...

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Comments
cfield's picture

Disaggregation

cfield | | Permalink

Good article by Steve as ever. I must admit, I didn't know about the need to show accrued/deferred income separately from accruals and prepayments.

Does this apply to small companies too?

futureb00ks's picture

when its time to hire a CFO

futureb00ks | | Permalink

 

We teach our clients to enjoy counting money to improve their appreciation for bookkeeping, and their company’s performance.

 

As the founder of a start-up you wear many hats. Some days you are the CEO – other days the CTO. And some days you need to be the CFO. Until you hire a CFO – you’re it.

 

There are answers in the numbers. If you do financial analysis every six months, you can reverse engineer from the books and create new products and services. Analysing the company’s financials gives you a focal point to understanding what to do next in the business.

We posted more here: http://bit.ly/X6t9en