Business Review
All companies other than small are required by the Companies Act 2006 to produce a business review. Quoted companies must include in their business review - to the extent necessary for an understanding of the development, performance or position of the company’s business - the following information :
- the main trends and factors likely to affect the future development, performance and position of the company’s business;
- information about-
- environmental matters (including the impact of the company’s business on the environment);
- the company’s employees, and
- social and community issues,
including information about any policies of the company in relation to those matters and the effectiveness of those policies;
- information about persons with whom the company has contractual or other arrangements essential to the business of the company.
The Business Review is crucial to encouraging directors to provide meaningful strategic, forward-looking information. The Business Review will add value to the quality of reporting without imposing unnecessary costs on business.
Throughout the passage of the Act, all interested parties were consulted. In response to these representations, a further requirement was introduced to quoted companies to disclose information on contractual and other relationships essential to the business.
The Future of Narrative Reporting: A Consultation
The Government issued a consultation in August seeking views on issues relating to corporate narrative reporting. The consultation is now closed.
