The Panel seeks to ensure that the annual accounts of public companies and large private companies comply with the requirements of the Companies Act 2006 and applicable accounting standards.

The Panel can ask directors to explain apparent departures from the requirements. If the Panel is not satisfied by the directors’ explanations it aims to persuade the directors to adopt a more appropriate accounting treatment. The directors may then voluntarily withdraw their accounts and replace them with revised accounts that correct the matters in error. Depending on the circumstances, the Panel may accept another form of remedial action - for example, correction of the comparative figures in the next set of annual financial statements. Failing voluntary correction, the Panel can exercise its powers to secure the necessary revision of the accounts through a court order. The Panel maintains a legal costs fund of £2million for this purpose. Also, if the case concerns accounts issued under the UK Listing Rules, the Panel may report to the Financial Services Authority.

To date the Panel has succeeded in resolving all cases brought to its attention without having to apply for a court order.

The Panel does not offer advice on the application of accounting standards or the accounting requirements of the Companies Act 2006.

Enquiries can be directed to the Panel via our contact page.