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Narrative Reporting

Business Review

The Company Act 2006, which received Royal Assent on 8 November 2006, made changes to the narrative reporting requirements.  All companies, other than small, are already required to produce a business review.  In the case of quoted companies, the directors will be required – to the extent necessary for an understanding of the business – to report on environmental matters, the company’s employees and social/community issues. The Government believes that Business Review is crucial to encouraging directors to provide meaningful strategic, forward-looking information. Business Review will add value to the quality of reporting without imposing unnecessary costs on business.

Throughout the passage of the Act, the Government listened to and consulted all interested parties. In response to these representations, the Government introduced a further requirement to quoted companies to disclose information on contractual and other relationships essential to the business.

Further background information on the consultation on narrative reporting:

Consultation document