iGAAP Alert — Draft regulations proposing a new structure for narrative reporting in the UK
The United Kingdom Department for Business, Innovation and Skills (BIS) has published The future of narrative reporting: A new structure for Narrative Reporting in the UK, which sets out draft regulations which aim to re-energise UK reporting.
Under the proposed regulations, the business review will be replaced with a strategic report. This is broadly similar to a business review but includes some extra content for quoted companies concerning the business model, human rights and diversity. The need to disclose essential contracts have been dropped. The directors' report is largely unchanged although information on principal activities and a handful of other requirements have been removed.
Shareholders who currently receive only the summary financial statement will in future receive the strategic report instead. This replaces a summarised profit and loss account and balance sheet with what is essentially a narrative discussion about the company's strategy and performance.
If enacted, the regulations will come into force in October 2013. Comments on the regulations are requested by 15 November 2012.
Read more by downloading the alert below.