Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • December 2013
12

FRC: New accounting regulations open up opportunities

Open-access content 28th November 2013

Early in November, the Financial Reporting Council (FRC) announced new accounting regulations for listed companies: risk management; internal control; and the going concern basis of accounting.

The new requirements will mean that sophisticated solvency and liquidity risk reports will be mandatory and that auditors will be required to both check the company's risk assessment and assess these risks themselves. The FRC said that the "narrow accounting basis" of going concern would be retained, but that it would incorporate the stewardship definition into the reporting of solvency and liquidity risks. 

The council was quoted in the media as saying: "When looking at going concern in layman's terms, people want to know if the entity is going to be able to settle its bills. We wanted to move away from giving a going concern statement in the narrative report."


Robust risk assessments

The new rules will require companies to undertake robust risk assessments, often backed up by scenario modelling, and for auditors to be able to investigate and challenge the work that was carried out to evidence these assessments.

With an October 2014 application date, the timeline to implement these activities is challenging to say the least, and access to established expertise in the modelling of financial uncertainty and risk will be vital. 

Few professionals have the technical knowledge and judgement required to undertake the modelling that these new rules demand. Clearly, there is an opportunity here for actuaries to play a key role in helping companies and auditors to implement these new requirements.

This article appeared in our December 2013 issue of The Actuary.
Click here to view this issue
Filed in:
12
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Reinsurance Pricing Lead

England, London
£40000 - £75000 per annum
Reference
118905

Senior Pricing Actuary

London, England
£60000 - £110000 per annum
Reference
118904

Pricing Actuary (Casualty)

England, London
£60000 - £80000 per annum
Reference
118903
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200