Some of the largest firms in the UK have improved impairment disclosures in their financial reports, it has been revealed.
Last year, the Financial Reporting Review Panel (FRRP) wrote to 30 companies advising them that the disclosures in their next set of financial statements would be reviewed for compliance with International Accounting Standard (IAS) 36: Impairment of Assets.
The body has now completed its initial review of this year's efforts and has found that 22 of the 30 firms have improved the overall quality of impairment information.
According to the FRRP, 13 companies have made significant progress in the area.
The body will now write to 26 of the firms to tell them that there is no need for a further enquiry into the issue at this time.
However, the panel is to conduct a more detailed review of the information issued by four businesses, although this does not mean they failed to comply with the requirements of IAS 36.
Ian Wright, head of corporate reporting at the UK Financial Reporting Council (FRC), said: "We hope that many companies will be looking at their peer group disclosures and will be seeking to improve their goodwill and intangible asset disclosures which are so relevant at present."
Established in 1990, the FRRP is part of the FRC.
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