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FRC publishes revised Guidance on the Strategic Report

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02 Aug 2018

The Financial Reporting Council (FRC) has published revised Guidance on the Strategic Report encouraging companies to consider wider stakeholders and broader matters that impact performance over the longer term.

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.

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 and the new legislation are available on this website.

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