How AIM Works

Attorney, Auditor & Reporting Accountant

The roles of the company’s Attorney and Auditor are not unique in a London AIM IPO, however, the role of the Reporting Accountant is.

The Reporting Accountant is directed by the Nominated Adviser to prepare four reports; a Long Form Report, a Short Form Report, an Adequacy of Financial Reporting Systems Report and a Working Capital Report.  The Reporting Accountant is usually the same firm as the Auditor or the Auditor’s international affiliate.  The company contemplating a London AIM IPO selects and compensates the Reporting Accountant, however, such selection, and the work of the Reporting Accountant, must pass the scrutiny of the Nominated Adviser.

The Long Form Report remains private and concerns itself with matters relating to financial due diligence such as the company’s history, management, accounting policies, customer base, supplier base, taxation, etc.  The Long Form Report is however used as the basis for the preparation of certain parts of the London AIM Admission Document.

The Short Form Report is included in the London AIM Admission Document and focuses on the company's historic financial results but may also include pro forma financials if an acquisition will be completed in conjunction with the London AIM IPO.

The Adequacy of Financial Reporting Systems Report remains private and comments on the company’s internal controls all the way through to how the company reports its results at the financial statement level.

The Working Capital Report remains private and investigates the prospective London AIM-listed company’s current working capital situation and includes a projection of the company’s working capital needs for at least 12 months from the anticipated date of the London AIM IPO.  The Reporting Accountant is responsible for ensuring that the projection is adequate, that it has been stress tested and that key assumptions made by management have been adequately challenged.

The Directors ultimately confirm that the prospective London AIM-listed company's financial reporting systems are sound and that the company will have sufficient working capital upon completing its IPO on London’s AIM.