Standards of financial reporting in the UK are currently good, although there is room for improvement, according to a new report.
The Financial Reporting Review Panel's (FRRP) annual activity report has revealed that out of the 326 sets of accounts the body examined, 112 firms were approached for further information.
According to the FRRP, all companies will have to work on improving disclosures on the financial risks, sources of estimation, uncertainty and judgements relating to the application of accounting policies.
Bill Knight, chairman of the FRRP, said: "Disclosure should be full, frank and company-specific and should avoid generic descriptions of the economy which do not help users to understand how the board is responding to the challenges faced by their particular company."
As reporting frameworks are increasingly reliant on a management approach, this will be even more important, he added.
Recently, Roger Tabor, chair of the Professional Accountants in Business Committee of the International Federation of Accountants, called on accountants to ensure they are providing the information needed to support management decision making processes.
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