The Financial Reporting Council has published its report into the activities of the FRRP for the year to March 2012.

Some 326 sets of accounts were reviewed over the year and 130 companies approached for further information or explanation, but none resulted in the issue of a press notice. However, 10 companies have adjusted subsequent accounts and referred to the FRRP in their commentary on the adjustments.

It deemed the general quality of reporting as 'good' and it noted that there had been an improvement in the reporting of principal risks and uncertainties.

It also singled out the reporting of mitigating actions as being particularly well executed.

The body discovered more issues in the accounts of smaller listed and AIM quoted companies. It said directors of such companies 'should not underestimate the importance of their legal responsibility to prepare accounts that comply with the law and accounting standards'.

The report revealed a slight shift in emphasis from previous years, with the FRRP repeatedly highlighting that the need for disclosures should only be included if they are relevant and material.

Richard Fleck, chairman of the FRRP and the conduct committee, said: 'The panel was encouraged by the continued willingness of boards to hold constructive and open dialogue. They have responded well to suggestions as to how they might improve the quality of their reports by focussing on key messages. That co-operation is central to the effectiveness of the UK model of enforcement.'

Another core theme to emerge is the need for a set of accounts to give an insight into how the accounting policies and presentation reflect the way the business is being run.

It noted that there are a number of areas where it appears that accounts preparers are uncertain of the detail of how to apply IFRS, for instance in accounting for foreign currency translation, put options over non-controlling interests, earnings per share and the calculation of discount rates for use in impairment reviews.