FRC guide to help smaller listed companies improve financial reporting

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May 13, 2019

In May 2019, the UK Financial Reporting Council (FRC) published "Smaller Listed and AIM Quoted Companies — A Practical Guide for Audit Committees on Improving Financial Reporting".

In 2015, the FRC published a discussion paper on the same topic found that "whilst the system of financial reporting is not fundamentally flawed, there is a higher incidence of poorer quality annual reports by smaller quoted companies than by their larger counterparts". Therefore, the FRC has developed a guide that offers practical, cost-effective suggestions on how smaller quoted companies can improve the quality of their financial reporting and suggested questions for audit committees to ask themselves and those associated with the financial reporting process that are designed to encourage the smaller quoted companies to reflect on current practices and consider areas for improvement. The guide not only builds on the 2015 discussion paper but also includes more recent developments such as three new international accounting standards, on revenue (IFRS 15), leases (IFRS 16) and financial instruments (IFRS 9), coming into effect in the last three years.

Review the guide on the FRC's website.

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