FRC to focus on quality of small company reporting | Applied

FRC to focus on quality of small company reporting

FRC launches series of measures aimed at improving the quality of corporate reporting at smaller quoted companies.

THE FRC has launched a series of measures aimed at improving the quality of corporate reporting at smaller quoted companies after finding that many accounts fail to meet investor expectations.

Many smaller quoted companies lack sufficient skilled resources and are unable to keep pace with new reporting requirements, the reporting watchdog found in a review of reporting by companies listed on junior stock markets.

It said it will develop ways of providing more focused training to finance staff; provide guidance to audit committees and boards on evaluating the adequacy of a company’s financial reporting function and process; promote options for reduced disclosures against IFRS against such companies; and provide annual guidance to boards of smaller quoted companies on the current issues, areas of focus for investors and common errors.

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