4.3 The strategic report or business review Flashcards Preview

Interpreting Financial & Accounting Information > 4.3 The strategic report or business review > Flashcards

Flashcards in 4.3 The strategic report or business review Deck (11)
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1
Q

What information is contained in the strategic report?

A

Information on the companies activities, performance, position and risks.

2
Q

Which companies must prepare a strategic report?

A

All companies except small and micro.

3
Q

Where can the guidelines on preparing the strategic report be found?

A

Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013

4
Q

What are the consequences for failure to comply with the requirements of the strategic report?

A

Directors can be fined.

5
Q

What information must be contained in the “fair review” section of the strategic report?

A

A balanced and comprehensive analysis of the company’s business during the financial year, including KPIs.

6
Q

What information must be contained in the “principle risks and uncertainties” section of the strategic report?

A

Risks and uncertainties that have affected the company’s business.

7
Q

What information must be contained in the “going concern” section of the strategic report?

A

Details of any event affecting the going concern assessment.

8
Q

What information must be contained in the strategic report regarding references to annual accounts?

A

There should be references and additional explanations of amounts included in the annual accounts, which the directors consider to be of strategic importance.

9
Q

Why must approve and sign the strategic report?

A

The report must be approved by the board and signed on its behalf by a director or the secretary,

10
Q

What additional information must quoted companies include in the strategic report?

A
  • a description of company strategy
  • a description of the company’s business model
  • information on environmental, employee and social issues (e.g. human right sand gender diversity)
11
Q

Is a company required to send the strategic report to shareholders?

A

The company may send the strategic report and certain supplementary material in place of the full annual report.

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