For AIM-listed businesses, reporting requirements are evolving fast, and for AIM-listed finance leaders, your ability to keep building a growth company rests on your understanding of the landscape and its shifts.
Some changes are designed to make AIM more attractive and flexible. Others will demand action from finance teams now, long before they become mandatory. And some aren’t technically required for AIM companies at all, yet they’re still reshaping investor expectations.
That’s why finance leaders need to think beyond compliance to anticipate what investors, auditors and stakeholders will expect from you next.
With insights from Cooper Parry’s recent ‘AIM Listed. Future Ready’ webinar, we’ve covered some of the key areas to keep on your radar below.
AIM Is Evolving. Pay Attention
If you’ve been following the debate around the future of AIM, you’ll know there’s growing recognition that the market needs to better support ambitious, high-growth businesses.
The London Stock Exchange’s proposed AIM Notice 62 changes are a clear signal of intent.
We’ve already covered the detail in our article, “AIM rules are changing: What AIM Notice 62 means for CFOs“, but the broader message matters just as much as the individual rule changes:
- Less regulatory burden
- Greater flexibility
- Easier access to capital
- Increased reliance on boards, management teams and Nomads
In other words, AIM is being repositioned as a growth market, not a smaller version of the Main Market.
That matters because it could fundamentally change how finance leaders think about reporting frameworks, transactions and fundraising.
For some businesses, it may create opportunities to simplify reporting. For others, it could make executing growth strategies significantly easier.
So, don’t just focus on the rule changes themselves. Focus on what they’re telling you about the future of AIM.
IFRS 18 Is Coming. Are You Ready?
While Notice 62 remains under consultation, IFRS 18 is very real.
And for many AIM-listed finance teams, preparation should already be underway.
Mandatory for accounting periods beginning on or after 1 January 2027, IFRS 18 replaces IAS 1 and introduces a new approach to presenting financial performance.
Importantly, this introduces key changes to how profit is presented.
Think of it as applying a cash flow mindset to the profit and loss account.
The aim is greater consistency and comparability between organisations. Investors should be able to place two sets of accounts side by side and more easily understand what drives performance.
Sounds straightforward. But the practical implications for finance teams are more significant than they may first appear.
Your P&L Will Look Different
IFRS 18 introduces a more structured presentation of income and expenses through defined categories, including:
- Operating
- Investing
- Financing
- Income tax
- Discontinued operations
Many businesses will need to reassess how costs and income are currently classified and presented.
And because comparative figures will need to be restated, this isn’t something to leave until year-end.
Operating Profit Takes Centre Stage
One of the most notable changes is the introduction of new required subtotals, including:
- Operating profit or loss
- Profit or loss before financing and income tax
For businesses that use the indirect method for cash flow reporting, operating profit becomes the starting point.
That brings increased visibility and, inevitably, increased scrutiny.
Adjusted EBITDA? Expect More Attention
Many AIM-listed businesses use alternative performance measures to tell their growth story.
Adjusted EBITDA has become almost second nature.
Under IFRS 18, these measures move into sharper focus.
Management-defined performance measures (MPMs) will require additional disclosure, reconciliation back to IFRS numbers and audit oversight.
For well-prepared businesses, this shouldn’t be a dramatic change.
But it does reinforce a wider trend. And if you’re using non-GAAP metrics, be ready to explain them clearly, consistently and transparently.
The Bigger Challenge Is Communication
Technically, IFRS 18 isn’t the most complicated accounting change we’ve seen.
In fact, the greater risk may lie in messaging.
When financial statements suddenly look different, stakeholders ask questions.
Investors want to understand what changed. Analysts want consistency. Boards want confidence.
As such, the smartest finance leaders are already thinking beyond compliance and considering how they’ll communicate the impact of IFRS 18 long before the first set of revised accounts lands.
Why AIM Companies Should Care About Provision 29
Now for a topic that often gets dismissed too quickly.
Provision 29 of the UK Corporate Governance Code does not apply to AIM-listed companies.
So why should AIM finance leaders care?
Because investors increasingly do.
Provision 29 requires Main Market companies to provide a board declaration regarding the effectiveness of material internal controls.
While AIM companies aren’t under the same obligation, we’re seeing growing focus on financial controls, governance frameworks and risk management across the market.
Audit committees are asking more questions.
Investors are looking more closely.
And businesses that can clearly demonstrate strong control environments are often in a stronger position when it comes to investment conversations, acquisitions and due diligence exercises.
Put simply: what is mandatory today for Main Market companies can quickly become an expectation elsewhere.
ECCTA: Controls Are No Longer Just About Governance
There’s another reason internal controls have moved up the agenda.
The Economic Crime and Corporate Transparency Act (ECCTA) has made fraud prevention a board-level issue.
For businesses within scope, organisations must be able to demonstrate they had reasonable prevention procedures in place if fraud occurs.
Controls are no longer just about satisfying auditors.
They’re becoming part of a business’s defence against legal, financial and reputational risk.
Could you clearly explain your key financial controls today?
If not, now is the time to start.
What Should AIM Finance Teams Be Doing Now?
The strongest finance functions are preparing early – not waiting for deadlines.
That includes:
- Assessing the impact of IFRS 18 on reporting structures
- Reviewing management reporting alongside future statutory reporting requirements
- Evaluating whether proposed AIM reforms could create opportunities for the business
- Strengthening documentation around internal controls and governance processes
- Preparing for greater investor scrutiny of reporting and performance measures
The future of AIM reporting is about confidence, as much as compliance.
Confidence for investors. Confidence for boards. Confidence that your finance function can keep pace with changing expectations while still supporting growth.
And for AIM-listed businesses trying to scale in a competitive market, that confidence might be one of the most valuable assets of all.
Ready for What’s Next?
Whether it’s preparing for IFRS 18, strengthening your control environment in line with growing investor expectations, or understanding how proposed AIM reforms could support your growth ambitions, Cooper Parry’s AIM team is here to help.
Get in touch today to find out how we can make a difference to your journey.
