All private and public limited companies are required to produce directors’ report together with their accounts for their shareholders by law and the report must also be filed with Companies House if the company has not been eligible to file abbreviated accounts under the company law.
Disclosure requirements for companies
Principal activity
The company must specify its principal activity including any significant changes during the accounting period.
Business review
The company must include a fair review of the business performance during the year and provide description of its principal risks and uncertainties plus analysis of performance indicators and referenced to amounts included in the accounts where possible.
Future developments
The company must disclose information about the company future plus any events happened after the balance sheet date to give a true and fair view to the readers of the accounts.
Employee policy
If the company employed more than 250 staff during the year, the directors must have a company policy for ensuring staff involvement in matters of concern to them and providing staff with relevant information. This includes employment of disabled employees.
Political and Charitable donations
The company must disclose donations made if the amounts exceed £200. The details of amounts and the name of each person or organization receiving such amounts must be given. However, expenditure on charitable purposes outside UK may not be disclosed.
A wholly owned subsidiary company may choose not give this information, but the parent company must give any such donations made by the subsidiary company. The disclosure limit for political and charitable donations has increased to £2,000 for accounting period beginning 6 April 2008.
Dividends
The company must include information about dividends proposed and paid during the year.
Payments to suppliers (creditors)
The following must be given for public companies and for large private companies that are subsidiaries of public companies:
-
A statement of policy on the payment of suppliers.
-
If the company subscribes to a code on payment practices, such as the CBI code, this must be stated, and it must also be stated how details of the code may be obtained.
-
A statement of the average number of days' credit outstanding at the balance sheet date.
Directorships
The names of all persons who were directors during the year must be disclosed. If a person was not a director for the whole of the year, the date of appointment and/or the date of resignation or removal must be given. Relevant Companies House forms for director appointment and termination must be filed with Companies House.
Land and Building
Any difference in market value of interests in land or buildings over book value at the balance sheet date. This is only if the directors believe that the members' attention should be drawn to it and in practice it is usually only done if the difference is material.
Share Capital
Changes in share capital during the year. Disclose new shares issued and the acquisition of the company’s own shares.
Accounting principals
Details of accounting principles adopted must be given.
Going concern
If applicable, directors should report:
-
Any material uncertainties, of which the directors are aware, in making their assessment of the going concern status of the company that may cast significant doubt on the company's ability to continue as a going concern.
-
Where the foreseeable future considered by the directors in their assessment of the going concern status of the company is less than one year from the date of approval of the financial statements, then that fact,
-
Where the financial statements are not prepared on a going concern basis. That fact, together with the basis on which the financial statements are prepared and the reasons why the company is not considered a going concern.
Statement as to disclosure to auditors
For companies require producing audited financial statements, the directors' report must include a statement to the effect that, in the case of each of the persons who are directors at the time the report is approved -
(a) So far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
(b) He has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.'
The disclosure requirements discussed above are of a not small company obligation and these are the information required by your accountant to complete your statutory accounts for filing to Companies House and for the shareholders.
If you require help in doing your company accounts, Accountants at Concise Accountancy are able to help you to prepare your accounts in a prescribed statutory format and compliant to the company law.
Concise Accountancy – Complete accounting solutions for companies
