The accounting regulator, the Financial Reporting Council (FRC) is to produce a simpler version of its revised Sharman guidance, first published in January 2013, specifically for the use of small to medium-sized businesses (SMEs).

This follows feedback from smaller businesses that the proposed guidance, which covers the reporting of going concern and liquidity risks, is not relevant to SMEs in its current form as it was designed primarily for listed entities.

FRC executive director of codes and standards, Melanie McLaren, told Accountancy that a revamp of the draft is probable.

'We have had quite overwhelming feedback that this might be a step too far for SMEs,' McLaren says.