In the UK, the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 require certain companies to prepare a stand-alone strategic report as part of their annual report. On 15 August 2013, the Financial Reporting Council (FRC) in the UK published a consultation paper setting out draft guidance on the application of the strategic report requirements, which are due to come into effect on 1 October 2013.
The FRC is currently preparing the non-binding guidance on the strategic report requirements, which it hopes will act as a catalyst for entities to prepare more concise and relevant narrative reports. The guidance is intended to encourage preparers to consider how the strategic report fits with the annual report as a whole and to enhance the quality of narrative reporting.
Feedback on the draft guidance should be provided by 15 November 2013.