The FRC in its 2009 publication Louder than Words - Principles and Actions for Making Corporate Reports Less Complex and More Relevant included a call for action to 'Ensure disclosure requirements are relevant and proportionate to the risks', stating that 'We would like to see a project on disclosure which investigates the characteristics of useful disclosures and the main objectives of financial reporting disclosure. . . . Ideally, we believe another organization could constructively kick off this work with a view to providing recommendations to the relevant regulators, including the International Accounting Standards Board (IASB).'
Required:
Critically discuss how a company could determine whether any disclosure is proportionate to the risks and whether this implies that there should be fewer mandatory disclosures which lead to ever more complexity?