P6. Annual or integrated report

Question 1

Which aspects of the annual report is the CoSec often concerned with? (5)

Answer 1

Chair’s statement
Strategic and Directors’ reports
Remuneration report
CG report
Reports of various committees

Question 2

What are the 5 categories of company with regards accounts/annual reporting

Answer 2

Micro-entities
Small
Medium
Unlisted companies
Listed companies

Question 3

What is classed as micro entity?

Answer 3

2 of
632k turnover
316k balance sheet
10 employees

Question 4

What must a micro-entity file?

Answer 4

Balance sheet, notes (and auditors report if audited)
Confirmation that the accounts have been prepared in accordance with the micro-entity provisions

Question 5

What is classed as small company?

Answer 5

2 of
10.2m turnover
5.1m balance sheet
50 employees

Question 6

What must a small company file?

Answer 6

Balance sheet, notes (and auditors report if audited)
Confirmation that the accounts have been prepared in accordance with the small companies’ regime

Question 7

What is classed as medium company?

Answer 7

2 of
36m turnover
18m balance sheet
250 employees

Question 8

What must a medium company file?

Answer 8

Balance sheet
P&L account
Notes
Directors report
Strategic report
Auditors report (if audited)

Question 9

What is included in full accounts?

Answer 9

Balance sheet
P&L account
Notes
Directors report
Strategic report
Auditors report

Question 10

4 main additional disclosure requirements in annual report for listed company

Answer 10

CG report
Annual report on remuneration of directors
Statement of viability over longer term
Explanation of business model

Question 11

Define quoted company

Answer 11

Company whose equity share capital has been listed in the UK, an EEA state, the NYSE or Nasdaq.

Question 12

Private co, how long to file annual report?

Answer 12

9 months

Question 13

Listed co, how long to file annual report?

Answer 13

6 months

Question 14

Quoted co, how long to publish annual financial report?

Answer 14

4 months (though 6 to file)

Question 15

What is sometimes referred to as ‘front end’ of accounts?

Answer 15

Strategic report
Directors report
Directors remuneration report
Corporate Governance statements

Question 16

Intention of strategic report?

Answer 16

Inform and assist members in assessing how directors performed duty under CA2006

Question 17

Intention of directors’ report?

Answer 17

Provide overview of financial position - allow easier comparison over time and between companies by virtue of being in prescribed format

Question 18

Purpose of auditor’s report? (3)

Answer 18

Provide independent opinion on truth and fairness of financial accounts and some sections of narrative reports
Report whether financial accounts have been properly prepared in accordance with Act
Report whether other requirements of company law have been met

Question 19

Which companies are exempt from audit?

Answer 19

Small (or micro)
Dormant
Qualifying subsidiary

Question 20

Listed companies should also explain the work of which committees in the annual report?

Answer 20

Audit
Nomination
Remuneration (this is usually included in dir. remuneration report)

Question 21

For how long must a listed companies financial statements be publicly available?

Answer 21

10 years

Question 22

Until when must quoted companies make annual accounts and reports available on their website?

Answer 22

Until the next year’s are made available