UK Companies Struggle to Report Cash Flows, Asset Impairments

Public companies in the UK continue to have trouble with cash flow statements and disclosing unexpected losses in assets’ value, such as technology becoming outdated, the country’s accounting watchdog found.

Still, listed companies made slight improvements to their disclosures overall compared to last year, the Financial Reporting Council said in its annual quality review released Tuesday. The watchdog found fewer problems serious enough to result in changes to published financial statements.

Smaller firms fared worse than their larger counterparts, the watchdog found. The FRC found substantial issues with reporting quality at 26% of companies examined that were part of the ...