Sharman Panel of Inquiry meaning

The Sharman panel of Inquiry is the UK review commissioned by the Financial reporting Council in March 2011, led by Lord Sharman, into how boards and auditors assess and report on going concern and liquidity risk after the financial crisis. It is not defined in legislation or case law; the term is used in corporate reporting and audit practice to describe the review and its reports (final report, June 2012). Its recommendations informed later regulatory changes, including revisions to the UK Corporate Governance Code (2014), the FRC’s Guidance on Risk Management, Internal Control and Related Financial and Business Reporting (2014), enhanced narrative reporting on going concern and liquidity, updates to ISA (UK) 570 Going Concern, and the introduction of the board’s longer-term viability statement. Practically, the term is cited when advising on directors’ responsibilities for going concern assessments, stress‑testing and liquidity disclosures in annual reports, and auditor procedures and reporting on going concern. Usage is consistent across England & Wales, Scotland and Northern Ireland. In Ireland, the term is recognised but has no direct regulatory status; comparable expectations apply under Irish company law, financial reporting standards and ISA (Ireland) 570.