Blogs/Vlogs

Guidance on new narrative reporting requirements

06 August 2020

For accounting periods commencing on or after 1 January 2019, new narrative reporting requirements for large private companies and public companies, including large charitable companies and academy trusts, have come into force.

The key changes include:

  • Public and other large companies (250 or more UK employees) will need to include additional information in their Strategic Report on their directors' responsibility to promote the success of their company.
  • For large companies, it is now a requirement for the Directors' Report to include a statement on employee engagement, as well as a statement explaining the company's relationship with suppliers.
  • Quoted companies are required to explain the effect of future share price appreciation on executive pay outcomes in the Directors' Remuneration Report, and quoted companies with over 250 employees will also have to provide pay ratio information.

Furthermore, large private companies and LLPs will be required to report on their UK greenhouse gas emissions, energy consumption and energy efficiency for accounting periods commencing on or after 1 April 2019.

Our guidance explains the changes that have been introduced and the disclosure requirements.

 

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