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One year on from key updates to the UK Corporate Governance andStewardship Codes, early indications are that companies are responding in a positive manner to the changes introduced by the FRC in October 2012.  While most companies are only required to report formally in 2014 on how they have applied the 2012 version of the Corporate Governance Code, many are already disclosing their boardroom diversity policies.  There has also been an increase in the level of audit tendering activity.  Signs of better engagement with large companies by investment managers follow an uptake in signatories to the Stewardship Code.

The findings are set out in the FRC’s annual review of the Corporate Governance and Stewardship Codes for 2013, which was published on 19 December 2013.  The report shows that early adoption of new reporting recommendations on audit committee activities, and confirmation that reports and accounts are fair, balanced and understandable, has been less widespread.  However, anecdotal evidence suggests that many companies are reviewing their processes for making these disclosures, with a view to including them in their next report.

On 17 December 2013 the FRC issued for consultation proposals to update its UK GAAP standard on the Reduced Disclosure Framework (FRS 101).

FRS 101 (originally published in November 2012) reduced the reporting burden for groups reporting under International Financial Reporting Standards (IFRS) by allowing their subsidiaries to use the same accounting standards as the group accounts but with fewer disclosures.

This announcement is in line with the FRC’s commitment to update the standard at regular intervals, to ensure that the reduced disclosure framework remains consistent with IFRS and is cost effective for groups.  The FRC intends to review FRS 101 on an annual basis.

The FRC also proposes to simplify, in the reduced disclosure framework, the new disclosure requirements of IAS 36 (Impairment of Assets) and clarify how those applying FRS 101 can adopt the new international accounting practice for investment entities (set out in IFRS 10 Investment Entities and its consequential amendments to IAS 27 Separate Financial Statements), whilst complying with legal requirements.

HMRC published the latest issue of its Pensions Industry Business Update on 18 December 2013.  Among other matters, this issue includes information on:

On 20 December 2013 the PPI published Briefing Note 65 – Defined Ambition in Workplace Pension Schemes.

This briefing note discusses the possible impact of some of the Government’s proposals for Defined Ambition (DA) pensions, for members of existing DB schemes.  It also assesses the different DA options based on a DC pension structure.

All DB schemes have to complete an annual scheme return.

On 17 December 2013, TPR issued a guide to the questions covered in the scheme return.  The guide also highlights those areas that are the subject of new questions in the scheme return from January 2014.