The aim of the paper is to examine the impact of FRS 13 on the financial statements of UK quoted companies. In particular, a content analysis survey is used to investigate: (i) UK companies' disclosures about derivatives in their annual reports prior to the introduction of FRS 13; and (ii) changes in UK companies' reporting practices for derivative instruments since the introduction of the standard. The results indicate that the implementation of FRS 13 was associated with an increase in derivatives related information available in corporate annual reports. This association appears to hold irrespective of whether the actual number of pages of FRS 13 related information disclosed, or the relative measure of the percentage of the annual report containing FRS 13 information is used. Not surprisingly, the largest disclosers are FTSE 100 listed companies. The industry grouping with the largest average disclosure comprises companies from the Non-Cyclical Services sector. Thus, the implementation of FRS 13 has had a significant impact on the content of annual reports. This additional disclosure may have provided stakeholders with useful information about these companies.

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