The regulator has highlighted continuing problems with the quality of financial reporting at smaller companies listed on the Main Market and AIM, beyond the larger FTSE 350 entities.

Now the FRC is calling for ‘improved reporting in coming years by these companies’, stressing that the accounting issues were not new after numerous earlier reviews where similar accounting problems were flagged.

The regulator highlighted ongoing problems with the quality of reporting, identifying issues around revenue recognition, cash flow statements, impairment, and risk disclosures on financial instruments repeatedly requiring improvement, despite repeated warnings.