FRC highlights where reporting by smaller companies needs to improve

Released 6 November 2018

The Financial Reporting Council (FRC) has published a new report: Reporting By Smaller Listed and AIM Quoted Companies (‘smaller companies’) identifying areas for improvement.

The FRC reviewed the reports and accounts of 40 smaller listed and AIM quoted companies to consider:

Alternative performance measures (APMs) and Strategic Reports;

Pension disclosures;

Accounting policies, including critical judgements and estimates;

Tax disclosures; and

Cash flow statements.

The review identified several areas requiring improvement including that companies should provide more specific disclosures of significant accounting judgements and more quantitative information on key sources of estimation uncertainty. The FRC also found that companies could do more to ensure that the classification of cash flows complies with IAS 7 Statement of Cash Flows and that all sections of the report present APMs in a balanced and transparent manner.

For more information, see FRC highlights where reporting by smaller companies needs to improve.

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