FRC publishes practical insights to help smaller listed companies improve corporate reporting quality
News types: Publications
Published: 19 November 2025
The Financial Reporting Council (FRC) has published practical insights to help smaller listed companies improve the quality of their corporate reporting and make the most of their resources.
“Thematic review: Reporting by the UK's smaller listed companies”, examines annual reports from 20 companies listed outside the FTSE 350, both on the Main Market and the Alternative Investment Market (AIM). It focuses on four key areas where investors pay close attention and where the FRC has historically identified room for improvement:
- Revenue recognition – to ensure clear, company-specific accounting policies
- Cash flow statements – to encourage accurate classification and consistency with other disclosures
- Impairment of non-financial assets – to enhance the transparency disclosure of assumptions and sensitivities
- Financial instruments – to tailor policies and risk disclosures to the company.
The thematic aims to help companies improve their reporting quality in these areas through better understanding of requirements and good practice, providing greater detail on the common triggers for FRC enquiries. It includes hypothetical, illustrative examples based on real casework, contrasting good quality reporting with less informative disclosures.
While the thematic supports smaller listed companies, auditors are also encouraged to use the report to understand the FRC's review approach and focus areas. Audit committees and investors will also benefit from the review’s findings to inform their challenges and engagement with companies to promote better quality disclosures.
Read the FRC’s Thematic review: Reporting by the UK's smaller listed companies