Chapter 6 - ANNUAL OR INTEGRATED REPORT

Question 1

Who is usually responsible for overseeing the compilation of the Annual Report’s chair statement, strategic and director report, remuneration report, corporate governance report and committee reports (as required)?

Answer 1

The Company Secretary

Question 2

Per CA2006 s 386, what companies are required to keep acounting records and prepare and publish financial statements at the end of each financial period?

Answer 2

All companies, regardless of type or trading status

Question 3

What different sizes / types of companies are referred to in the Act in respect of filing accounts?

Answer 3

Micro entities
Small companies
medium sized companies
default disclosures for unlisted companies
additional disclosures for listed companies

Question 4

What size company could file accounts with the following elements?

Directors’ report (optional)
P&L (optional)
Balance Sheet
Auditors Report (if audited)
Notes

Answer 4

Micro-entity

Question 5

What size company is deemed so if it meets two of the following criteria? less than £632k turnover; less than £316k in its balance sheet (fixed and current assets) and less than 10 staff?

Answer 5

Micro-entity

Question 6

What size company is deemed so if it meets two of the following criteria? less than £10.2 m turnover, less than £5.1m in fixed/current assets and less than 50 staff?

Answer 6

Small companies

Question 7

A listed company has additional disclosure requirements, where can these be found?

Answer 7

Listing Rules

and

Disclosure and Transparency Rules

Question 8

Do micro and small companies need to file their profit and loss account with the Registrar?

Answer 8

No

Question 9

Which legislations (4) governs the content of corporate governance statements for listed companies?

Answer 9

Companies Act 2006, Listing Rules, Disclosure and Transparency Rules, UK Corporate Governance Code

Question 10

What size company is deemed so if it meets two of the following criteria? less than £36m turnover; less than £18m balance sheet; less than 250 employees

Answer 10

medium-sized company

Question 11

Full accounts must contain what key annual report sections?

Answer 11

Directors Report
Strategic Report
P&L
Balance Sheet
Group Accounts (if appropriate)
Auditor’s report
Notes to the financial statements

Question 12

What must PUBLIC companies do in addition to sending full company accounts to all members and submitting to the Registrar within nine months?

Answer 12

Hold a general meeting within 6 months of year end

CA 2006 s437

Question 13

What mandatory report is intended to be used by directors to inform the members of the company and assist them in assessing how the directors performed their duty under CA 2006 s172 (promote the success of the company for the benefit of all members)?

Answer 13

Strategic Report

Question 14

What mandatory report is intended to provide an overview of the financial position f the company by virtue of a prescribed format to allow easier comparison?

Answer 14

Director’s Report

Question 15

Who must publish a remuneration report per the following legislation and rules?

CA2006 s420
Listing Rules
Governance Code

+ best practice

Answer 15

Quoted companies
Listed companies

Question 16

What three key sections should a remuneration report include?

Answer 16

Rem committee chair statement
Rem report
Rem policy

Question 17

What does an audit focus on in respect of director duties?

Answer 17

Fiduciary responsibilities

Question 18

What type of company is required to have committee reports included in their annual report?

Governance Code Provisions 27, 31 and 41

Answer 18

Listed Companies

Question 19

What period of time must a listed company make its previous financial statements publicly available (usually on its website)?

Answer 19

at least 10 years

Question 20

What type of reporting allows directors of a company to demonstrate clearly the fullest possible overview of a business’s value creation strategy?

Answer 20

Integrated report