Strategic ReportingA practical guide for large and medium-sized companies
Strategic reporting for large and medium-sized companies
All UK-incorporated companies are required to prepare a strategic report, as well as a directors’ report, within their annual report unless they have an exemption. The Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 came into force on 1 October 2014 and apply to financial years ending on or after 30 September 2013.
As well as all of the matters previously required in the business review section of the directors’ report that must now be covered in the strategic report instead, the regulation also requires report preparers to place emphasis on the business story and understanding shareholder needs. The changes are intended to provide greater insight into the business through a clear focus on strategy, development and performance. The report should also provide a forward-thinking perspective and understanding of the principal risks and uncertainties facing the company.
All strategic reports must include:
- A fair review of the company’s business
- A description of the principal risks and uncertainties facing the company
A strategic report should provide a balanced and comprehensive view of the company and, where appropriate, include analysis using financial (and nonfinancial for larger companies) Key Performances Indicators (KPIs).
Strategic report requirements for large and medium-sized companies
The following table summarises the Companies Act 2006 strategic report requirements for large and medium-sized companies.
The emphasis of the regulatory guidance is on telling the business story and understanding shareholder needs, with greater focus placed upon the context of the business and the long-term principal risks and uncertainties underpinning the business, as well as future strategic prospects. Small companies are exempt from the requirement to prepare a strategic report.
There are also a number of requirements that are mandatory only for quoted companies. Please contact us for further information on these.
Frequently asked questions
For more information on strategic reporting, please visit our frequently asked questions.
Contact us for a free initial meeting
To find out more about how one of the leading firms of accountants in Sheffield, Doncaster and Northampton can help you, please contact one of our specialists. We believe in long-term client relationships and understand the importance of meeting to establish that you like us and we like you. This is why we offer all new clients a free initial meeting which will enable you to have a discussion about you and your business issues.
We look forward to hearing from you!
Free initial meeting
0114 266 7141
0114 266 7141
01302 367 262
Tax Partner, Northampton
01604 645 600
Hawsons are a registered firm with the Public Company Accounting Oversight Board (PCAOB), this enables us as a firm to provide audit and assurances services to U.S. subsidiary companies based in the UK, in accordance with the Sarbanes-Oxley Act of 2002 requirements.