One size does not fit all

Smaller quoted companies (SQC) have a key role to play in helping the economy emerge successfully from recession. In reporting, as other areas, we need to challenge the one-size-fits-all approach. The same requirements should not automatically apply to SQCs, with a market capitalisation often well under L100 million as to leading global players with a value hundreds of times greater. Two specific changes could significantly reduce SQCs' reporting burden. First, we need a clearer shared view by finance directors, auditors and regulators of when materiality can be applied to take away the need to implement particular requirements in standards. Second, SQCs should have the choice to use the much simpler IFRS for SMEs when preparing their financial statements as an alternative to adopting full IFRS, which now runs to more than 2,500 pages of guidance.