Corporate Reporting: FRC’s insights on materiality in corporate reporting

On 29 July 2026 the Financial Reporting Council (FRC) announced the publication of its thoughts on how to apply materiality within corporate reporting. The FRC’s insights acknowledge the increase in length and complexity of annual reporting as requirements have expanded and demands for further information have continued. This means that the principle of materiality is absolutely fundamental to the reporting process to ensure that an annual report presents a clear, high-quality picture of a business, which is useful to its investors.

The guidance is divided into four sections.

1. Why is materiality important
2. Frequently asked questions, including how materiality applies in the context of climate-related disclosures
3. The process for applying materiality
   • Define the audience
   • Identify potentially material information
   • Assess and determine material information
   • Organise disclosures for effective communication in the annual report
   • Review disclosures in the annual report as a whole
   • Refresh materiality assessments annually
4. Links to additional, related resources such as the FRC’s Materiality in practice: applying a materiality mindset and Guidance on the Strategic Report 

If you would like further information about the FRC’s latest guidance or any other corporate reporting requirements, please get in contact with AJ Venter, Guy Francis or Charlotte Hamilton.

“Annual reports should be used as a communication tool, not a compliance checklist. [..] Materiality is not about disclosing everything; it is about disclosing what matters. Companies should be confident in exercising judgement and focusing reporting on information that informs investor decisions and avoiding immaterial disclosures that can reduce clarity.” Mark Babington, Executive Director of Regulatory Standards, Financial Reporting Council

https://www.frc.org.uk/news-and-events/news/2026/07/frc-shares-insights-into-materiality-in-corporate-reporting/