In the light of the collapse of Carillion, the Financial Reporting Council (FRC) has sent Guidance to Construction Sector companies reminding boards of their reporting obligations. The annual report and accounts for these companies must provide sufficient, clear and relevant information, segmented between business lines where necessary. Users must be able to:
• understand the company’s performance, financial position and prospects;
• assess its going concern status; and
• assess its longer term viability.
The accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss. The analysis presented in the strategic report must be fair, balanced and comprehensive. Boards of companies applying the UK Corporate Governance Code must ensure the annual report and accounts are fair, balanced and understandable.
The Guidance can be downloaded – click here