4.3 The strategic report or business review Flashcards
What information is contained in the strategic report?
Information on the companies activities, performance, position and risks.
Which companies must prepare a strategic report?
All companies except small and micro.
Where can the guidelines on preparing the strategic report be found?
Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013
What are the consequences for failure to comply with the requirements of the strategic report?
Directors can be fined.
What information must be contained in the “fair review” section of the strategic report?
A balanced and comprehensive analysis of the company’s business during the financial year, including KPIs.
What information must be contained in the “principle risks and uncertainties” section of the strategic report?
Risks and uncertainties that have affected the company’s business.
What information must be contained in the “going concern” section of the strategic report?
Details of any event affecting the going concern assessment.
What information must be contained in the strategic report regarding references to annual accounts?
There should be references and additional explanations of amounts included in the annual accounts, which the directors consider to be of strategic importance.
Why must approve and sign the strategic report?
The report must be approved by the board and signed on its behalf by a director or the secretary,
What additional information must quoted companies include in the strategic report?
- a description of company strategy
- a description of the company’s business model
- information on environmental, employee and social issues (e.g. human right sand gender diversity)
Is a company required to send the strategic report to shareholders?
The company may send the strategic report and certain supplementary material in place of the full annual report.
