2 March 2006
Companies' narrative reporting requirements
The Government took the decision in November 2005 to repeal the mandatory requirement on quoted companies to prepare an Operating and Financial Review (OFR) as contained in the OFR regulations so that they are required to prepare a Business Review instead. This decision was made in the light of the Government’s strong commitment to sustainable development, strategic forward-looking narrative reporting and its policy of not imposing unnecessary burdens on UK companies, and taking into account the large body of evidence from previous consultations on narrative reporting.
The following documents set out the rationale for this decision.
- PDF file of covering not to EAC on narrative reporting (57KB)
- PDF file of Treasury Solicitor´s letter 22/12/05 (56KB)
- PDF file of internal discussion note 29/09/05 (50KB)
- PDF file of note to Chancellor 11/10/05 (48KB)
- PDF file of note to Chancellor 11/11/05 (148KB)
- PDF file of note to Chancellor 23/11/05 (31KB)
- PDF file of stakeholder meeting notes (108KB)
At the same time the Government invited comments on any considerations which Ministers should take into account in deciding whether, and if so how, to frame amendments to these or other provisions of the Company Law Reform Bill to ensure effective forward looking narrative reporting by quoted companies, including, where appropriate, on social, community, employee and environmental matters.
The consultation has now been extended to invite views from all stakeholders on the full range of options for reporting, including matters previously contained within Schedule 7ZA of the Companies Act 1985 and within the Accounts Modernisation Directive (2003/51/EC), and any other matters relevant to narrative reporting.
The details of this consultation are set out on the Department for Trade and Industry website at: http://www.dti.gov.uk/consultations/consultation-1597.html