The reporting and accounting impact of changes to business models is likely to be a focus of the accounting watchdog's Financial Reporting Review Panel work for 2010/11 as the commercial property, advertising, recruitment, media and information technology sectors come under its scrutiny. The troubled banking and house-building sectors, as well as the declining travel and leisure sector, were under close focus of the FRRP over the last two years. 'As companies enter the next stage of the recession, where the outlook for corporate spending is uncertain, the panel is turning its attention to sectors that rely heavily on discretionary spend and which might be stretched in the short term. 'Advertising, media, recruitment and technology all featured in the panel's priority list last year as deserving attention but this year they take centre stage,' the FRRP said in a statement. In accordance with what is now its method of review, the FRRP will select annual reports and accounts from the full range of companies within the panel's remit for review on the basis of company-specific factors and complaints. Recent economic pressures on companies have led some to make changes to the way in which they do business, particularly where this helps them to manage their cashflow. According to the panel, such companies may need to take a fresh look at their accounting policies that impact on the measurement of earnings, such as revenue recognition and the expensing of costs, to ensure that they remain appropriate. Bill Knight, chairman of the panel said: 'Companies who are seeing their business models develop to meet the challenges of the recession will need to reconsider their revenue recognition policies to ensure that they still reflect their business activities. The panel will pay particular attention to the accounts of those companies which appear to apply aggressive policies compared with their peers.'