Broad support for division of annual report into two parts: a Strategic Report and an Annual Director’s Statement
In September 2011 the Government launched a consultation on the future of narrative reporting, as we discussed in this post. The Department of Business, Innovation and Skills last week published a summary of the responses received to this consultation, which can be read here.
On the format of narrative reports, the response paper states:
“Given the large degree of support from consultation responses we are minded to develop proposals to change the structure of narrative reporting to allow companies to produce a high level Strategic Report that is backed-up with an Annual Director’s Statement.
Over the next few months we will work with the FRC and representatives from the sectors that have responded to the consultation to clarify the detail of the Strategic Report and work to establish the full breadth of information that should go into the Annual Director’s Statement whilst ensuring that we do not create duplication. We want to develop a format that is flexible enough to allow companies to tell an integrated story in their own words, starting with their business model and strategy, covering their performance and looking towards their future.”
The response paper also discusses the views received in the consultation on simplifying disclosure requirements, reporting of remuneration and audit, assurance and audit committee reports.
See also: Executive pay: Government proposes that annual binding vote will need “supermajority” to pass
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