The UK Financial Reporting Council (FRC) has issued its analysis of corporate governance disclosures in 100 UK-listed companies' annual reports.
It found that the firms which departed from the 2018 UK Corporate Governance Code are “increasingly providing clear, meaningful and context-specific explanations for their approach”.
The FRC notes that 25 companies’ disclosures departed from at least one provision in the Code, with many explaining their rationale and describing the alternative governance arrangements that are in place.
Most firms mentioned the new provision on risk management and internal controls in the updated Code, with many providing details on their preparation activities.
In addition, the review identifies examples of good practice of managament commentaries and clear signposting in annual reporrs.
Moving forward, the FRC will review UK-listed companies annual reports against the updated 2024 Code, which took effect in January 2025.