Why directors report

Strategic report — all companies that are not small The strategic report should provide the readers of the annual report with a fair review of the company's business and a description of the principal risks it faces.

Strategic report — small companies Companies that qualify for the small companies' exemptions are not required to prepare a strategic report. Directors' report — all companies All companies, including those that qualify for the small companies' exemptions, must include a directors' report in their annual report. This approach is most likely to be considered for: Particulars of important events since the end of the financial year An indication of likely future developments An indication of activities in the field of research and development Where directors choose to "up-grade" any information, the directors' report must state which information has been treated in this way.

A statement detailing how the directors have had regard to the need to foster business relationships with suppliers, customers and others for all large companies judged purely on the size criteria i. These are similar to some of the requirements for the section statement. Unquoted large companies and LLPs who consume more than 40, kWh annually will be required to disclose: The annual quantity of emissions and energy consumed within the UK and its offshore areas. The calculation method and details of any energy efficiency improvement measures undertaken.

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Leave a Reply Cancel reply Your email address will not be published. At the end of each accounting year, private limited companies are required to provide a set of financial reports known as statutory accounts. The other reports which make up a company's statutory accounts include: a balance sheet ; a profit and loss statement ; and, in some cases, an auditor's report. This legislation is part of a general move towards greater corporate transparency. By knowing this information, shareholders can make better informed decisions and can hold the directors of the company to greater account.