Preparation Is Key

A joint publication from the FRC and the ICAEW recently provided practical suggestions for audit committees and boards of smaller listed and AIM quoted companies seeking to deliver high quality financial and risk reporting

Building on the themes from its 2015 discussion paper, the Financial Reporting Council (FRC) noted the general perception amongst smaller listed and AIM quoted companies is that their annual reports were not read by investors and as such, smaller quoted companies failed to prioritise or dedicate sufficient time to producing high quality annual reports. Rather than being seen as opportunities to communicate and engage with shareholders and potential investors, reports are often treated as a tick box exercise with most companies only complying in areas where they are required to do so.