ICAEW publishes guidance on how to improve disclosures when preparing accounts in accordance with FRS 102

18 September 2020

The Institute of Chartered Accountants in England and Wales's (ICAEW's) Financial Reporting Faculty has published guidance on how to improve disclosures when preparing accounts in accordance with FRS 102 in light of COVID-19.

The guidance is aimed at companies applying FRS 102 and identifies some key areas where entities might need to consider the impact of COVID-19 when preparing disclosures within their annual report and accounts. It is not intended as a disclosure checklist but rather to highlight factors to consider in the current environment. The guidance also refers to another ICAEW Financial Reporting Faculty checklist for guidance on recognition and measurement.

The guidance covers a number of areas of disclosure including:

Accounting policies
Significant judgements
Key sources of estimate uncertainty
Changes in estimates
Fair value of investment property
Going concern
Post balance-sheet events
Impairment of assets
Government grants
Provisions
Insurance policies
Termination benefits

Additionally the guidance addresses the presentation requirements for material items and alternative performance measures and factors to consider when preparing the strategic report.

A press release and the guidance is available on the ICAEW website.