On 11 November 2015, the FRC published a letter of advice to smaller listed and AIM companies on how to improve annual reports in areas of particular interest to investors.

The letter states that in particular, investors expect:

  • The Strategic Report to be clear, concise, balanced and understandable;
  • Accounting policies to be clear and specific, particularly in relation to revenue recognition and expenditure capitalization; and
  • A clear explanation of how the company generates cash flow.

This letter can be found at: https://www.frc.org.uk/Our-Work/Publications/FRC-Board/FRC-Letter-Year-end-advice-to-preparers-smaller.pdf

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