Due to covid-19, the effective dates for the six linked standards have been moved from June 2020 to September 2020 to allow firms to properly consider and plan for the changes.

Standards for Investment Reporting (SIRs) contain basic principles and essential procedures with which reporting accountants are required to comply in the conduct of an engagement in connection with an investment circular (eg, a prospectus listing particulars circular to shareholders or similar documents) prepared for issue in connection with a securities transaction governed wholly or in part by the laws and regulations of the UK or Republic of Ireland.

Reporting Accountants (RAs) play a critical role in the efficient and effective operation of capital markets through the various reporting engagements they carry out in connection with UK investment circulars. Their work is often closely related to the audit of financial statements. The SIRs provide clarity about the expectations on those carrying out the work, and to ensure consistently high-quality work is performed.

SIR 1000 provides basic principles and procedures for all relevant engagements, and SIRs 2000-6000 provide additional principles and procedures for specific types of public reporting. All of the SIRs have been updated to reflect significant changes in regulations (Prospectus Regulation Rules, the UK Listing Rules, the City Code on Takeovers), and auditing standards.

The standards will be effective for new Reporting Accountant engagements starting on or after 15 September 2020.

Engagements already underway before that date may be completed using the previous versions of the SIRs.

Mark Babington, acting director, UK Auditing Standards and Competition, said: ‘The updated Standards for Investment Reporting, and the new SIR 6000 dealing with Quantified Financial Benefits statements, bring our standards in line with significant changes to regulations and auditing standards.

‘The work Reporting Accountants do is of crucial importance to the UK capital markets, and these standards provide a robust and proportionate framework which gives market participants confidence in the quality of work underpinning major transactions.”

The standards are published alongside a Feedback Statement and Impact Assessment setting out the FRC’s responses to the public consultation on exposure drafts of the SIRs between May and July 2019.

Links to standards

The revised standards are available from FRC standards and guidance. 

SIR 1000 - Investment Reporting Standards applicable to all engagements in connection with an Investment Circular (March 2020) (PDF)

SIR 2000 Revised - 'Investment Reporting Standards Applicable to Public Reporting Engagements on Historical Financial Information' (March 2020) (PDF)

SIR 3000 - Investment Reporting Standards Applicable to Public Reporting Engagements on Profit Forecasts (March 2020) (PDF)

SIR 4000 - Investment Reporting Standards Applicable to Public Reporting Engagements on Pro forma Financial Information  (March 2020) (PDF)

SIR 5000 - Investment Reporting Standards applicable to Public Reporting Engagements on financial information reconciliations under the Listing Rules (March 2020) (PDF)

SIR 6000 - Investment Reporting Standards Applicable to Public Reporting Engagements on Quantified Financial Benefits Statements (March 2020) (PDF)