Watchdog warns some firms lack expertise to write clear accounts

Marion Dakers
THE FINANCIAL Reporting Council is worried that smaller listed firms do not have the resources to produce useful corporate reports.

The watchdog also said yesterday that only a few boards at big companies have cut out unnecessary clutter from their filings, making it difficult for investors to get a clear picture of the firm’s performance.

“It is important that boards are willing to hold open and constructive dialogue with investors and respond well to suggestions for improvements to the quality of their reports,” said the FRC’s Richard Fleck after publishing the group’s annual review.

The FRC also advised smaller and Aim-listed companies to consult more experts when drafting their reports to reduce the “straightforward areas of non-compliance” that were found in the watchdog’s review of 264 sets of accounts.