The narrative of the directors’ report within a set of limited company financial statements is changing, with the new rules affecting companies of all sizes.

The outgoing requirements asked for companies to report such items as charitable donations and creditor payment periods in the ‘business review’ section of the directors’ report.

For companies with periods ending on or after 30 September 2013, the requirement will be to report information within a new, separate strategic report. As a result, the directors’ report will generally become smaller.

This new report will include details of the company’s main objectives, strategy, business model and risks. It is intended that the information will provide more context and linkeage to the figures in the financial statements, leaving the directors’ report to provide other information about the company.

There are further changes affecting quoted companies which include:

• Disclosure on the levels of greenhouse gas emissions
• More transparent disclosure of directors’ remuneration, including a single figure of remuneration for each director
• A breakdown of the number of men and women on the board

Further guidance on the content of the Strategic Report is being consulted upon and we will report on this once it is known.

To discuss this issue in more detail, contact Andrew Bateman on [email protected] or call Andrew on 01527 558539..