Financial Reporting Requirements in Investment Circulars

Course Content:

Changes in markets and regulation

• Market development
• The Official List, AIM and PLUS
• Categories of Official List: Premium and Standard
• CESR/ESMA
• SIRs

Prospectus/AIM Admission Document

• Prospectus requirements
• Financial information and Accountants’ Reports
• AIM and PLUS document requirements

Premium, Standard and AIM – Key financial issues

• Superequivalent requirements
• Eligibility for new listing
• Class tests and Class 1 Circulars
• Reverse takeovers
• Related parties
• Role of Sponsor and NOMAD
• Comparison of financial reporting: Premium, Standard and AIM
• UK Standard Listing as alternative to AIM?

Accountants’ reports in Investment Circulars

• Procedures for all engagements
• Historical financial information
  • Full and proportionate disclosure
  • Full disclosure for prospectus/AIM admission document
  • Complex histories
  • GAAP required
  • Omissions
  • CESR recommendations
  • Companies and issues qualifying for proportionate disclosure
  • Proportionate disclosure for pre-emptive issues
  • Proportionate disclosure for SMEs and Small Caps
  • AIM carve outs
  • SIR 2000
  • Examples in prospectuses and AIM admission documents
• Profit forecasts or estimates
  • When required
  • SIR 3000
• Pro forma financial information
  • When required
  • SIR 4000
• Other Investment Circulars
  • PLUS circulars
  • Class 1 circulars
  • Takeover documents

• SIR 1000
• Ethical Standard for Reporting Accountants and APB guidance

Comfort letters in connection with investment circulars

• Working capital
• Capitalisation and indebtedness statement
• Financial reporting procedures and consultation
• Other financial information in circular
• Significant changes and bring down
• SAS 72 type comfort