Public Companies Should Outline Euro Risk in Reports, FRC Says
Directors of listed companies should describe the effect of volatile currency markets and government budget cuts on their international business in investor reports, a U.K. accounting regulator said.
Reports should also review the implications of “one or more euro area countries being forced to exit the euro area,” the Financial Reporting Council said in an e-mailed statement.
Greece and its creditors are yet to agree on the details of a debt reduction package, more than two months after the nation agreed to cut public spending in return for a 50 percent write- off on the face value of its debt. The U.K.’s bank regulator, the Financial Services Authority, last year told lenders to prepare contingency plans for the possibility of a country leaving the single European currency.
“Directors of companies in the U.K. are trying to assess the risks to their companies’ business models in difficult and rapidly changing economic conditions,” Stephen Haddrill, chief executive officer of the FRC, said in the statement today.
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