AIM COMPANIES MUST IMPROVE CLARITY OF FINANCIAL REPORTS

摘要

Smaller companies are being told to ensure their strategic reports are clear, concise, balanced and understandable, in a letter from the Financial Reporting Council (FRC) to around 1,200 smaller listed and AIM-listed companies. The FRC's letter, with advice on ways that improvements could be made to annual reports in areas of particular interest to investors, also urges companies to ensure accounting policies are clear and specific, particularly in relation to revenue recognition and expenditure capitalisation; and a clear explanation of how the company generates cashflow.