FRC publish update on reporting by smaller listed and AIM quoted companies

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01 Jul, 2016

The Financial Reporting Council (FRC) has published an update on their previous Discussion Paper on improving the quality of reporting by smaller listed and AIM-quoted companies.

In June 2015 the FRC published a Discussion Paper, Improving the Quality of Reporting by Smaller Listed and AIM Quoted Companies. The purpose of this paper was to outline the FRC’s view of the reasons for the poorer quality reporting by some smaller listed and AIM quoted companies in addition to outlining a number of proposals designed to help such companies improve the quality of their reporting. The Discussion Paper invited respondents’ views on both the issues identified by the FRC and their proposed actions.

The update provides an overview of the feedback received to the Discussion Paper and summarises the FRC's progress against the proposals that were included in that paper.

In summary, respondents:

  • were generally supportive of the FRC’s findings and proposed actions as outlined in the Discussion Paper;
  • urged regulators not to impose any additional regulatory burdens on smaller quoted companies, particularly AIM companies;
  • agreed that all quoted companies should apply a common reporting framework and that IFRS represented the most appropriate framework;
  • did not support a review of the Responsible Individual registration process;
  • welcomed the FRC proposal to send out annual reminder letters targeted at smaller quoted companies;
  • agreed that the FRC should encourage smaller quoted companies to participate in Financial Reporting lab projects;
  • supported the plan to develop further practical guidance for audit committees; and
  • welcomed the initiative to explore opportunities for providing more support for preparers of financial statements through training and CPD regimes.

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