The Financial Reporting Council has issued a discussion paper seeking views on measures to help smaller listed and AIM quoted companies improve the quality of their corporate reports. One of the FRC’s findings was that smaller quoted companies have a higher incidence of poorer quality annual reports than their larger counterparts. The FRC also considered allowing AIM quoted companies to report under UK GAAP, but found there was strong consensus that IFRS should remain the reporting framework for all listed companies. However, the FRC identified a desire for increased stability in IFRS and reduced disclosure for smaller quoted companies.
The FRC suggests several steps to improve the quality of reporting and is particularly interested in receiving views on whether the actions proposed are an appropriate and proportionate response to the issues. Feedback on the findings and proposals is due by 31 July 2015.
A copy of the paper can be viewed on the FCA website. (PDF)