The 2018 Guidance has been enhanced to recognise the increasing importance of non-financial reporting. The FRC believes the integration of non-financial information into the strategic report is a key part of telling a company's story.  However, the revised FRC Guidance clarifies that the FRC now expects a separate non-financial information statement to be made in the strategic report. This can be met through a title and a series of cross-references, so as to maintain the coherence of the strategic report and avoid duplication of information already included within the strategic report.

The 2018 Guidance places a greater focus on the directors' duty to promote the success of the company under section 172 of the Companies Act 2006. This was complemented by new legislation that introduces a specific reporting requirement on how directors regard broader matters when performing their duty, including considering the interests of employees, suppliers, customers and other stakeholders as well as impacts on the community and environment. The new legislation is applicable to large companies for financial years beginning on or after 1 January 2019.

A press release, the 2018 Guidance on the Strategic Report and a Feedback Statement on the Amendments to Guidance on the Strategic Report are available on the FRC website.

Our related Need to know publications on the FRC's consultation on the amendments to the Guidance, the new legislation and the revised guidance are available on this website.