The Directors' Report

The directors' report

The details required by statute to be disclosed in the directors' report include statements on the following:

1. The state of the company's affairs.

2. Recommended dividend.

3. Proposed transfers to reserves.

4. Principal activities of the company and its subsidiaries.

5. Market value of land shown on the balance sheet, if the market value differs substantially from the balance sheet value.

6. Significant changes in fixed assets.

7. Proportions of turnover and contribution to net income of the principal activities.

8. Turnover of exports from the United Kingdom, where exports exceed £250,000.

9. Average number of employees on the payroll throughout the year, where they exceed 100, and their aggregate remuneration.

10. Political or charitable contributions, where they total more than £50.

11. Shares or debentures issued during the year, with details.

12. Names of directors who served during the year.

13. Directors' ownership of shares and debentures in the company.


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Read on: Published Financial Accounting Statements

Published financial accounting statements

One of the areas of great controversy in accounting is the extent to which financial information should be disclosed to shareholders. It is usual for legislation to be used as a means of compelling companies to disclose information. The central issue revolves around the minimum level of disclosure compatible with the information requirements of shareholders and the protection of business interests.

Until recently, there was little public discussion of the information requirements of shareholders, and it was assumed that their needs were met... see: Published Financial Accounting Statements