This guide was produced with the FRC – which has previously raised concerns about the quality of reporting in this size sector.
Financial reporting in practice
High-quality financial reporting contributes to the strength and efficiency of an economy; it improves trust and transparency, and provides the ability to assess the financial integrity of a company and to hold management to account.
However, with often limited resources and other competing challenges, it is not always a top priority for smaller companies – who consequently are not always up to date with the most recent reporting requirements.
Advice and reflections
Our guide offers practical tips and cost-effective suggestions for smaller quoted companies, to help them improve their standards of financial reporting. It also suggests questions for audit committees to pose to themselves and to others involved in the financial reporting process – to encourage a reflection on current practices and consideration of areas for improvement.
Audit committees lie at the heart of improving financial reporting quality, and must be ready and prepared to challenge management and ask the necessary questions at the right time.
More widely, the guide seeks to emphasise the importance of high-quality financial reporting and advice on how to nurture a culture of improvement.
I highly encourage all smaller listed and AIM quoted companies to download this guide and hope it will encourage good practice, help audit committees and boards to evaluate their financial reporting functions, and ultimately drive improvements in quality.