Report of Directors

Introduction to Report of Directors

Additionally to ready the financial statements, UK (United Kingdom) law needs the directors to ready a yearly report to shareholders and other interested parties. The directors' report will consist of both financial and non-financial information that goes across that consisted of in the financial statements. The information to be disclosed is varied and will involve the names of those who were directors throughout the year, the main actions of the company and any suggested dividend. Though, the most significant element of the report is possibly the business review. This is intended at helping shareholders to assess how well the directors have performed. It should give an analysis of financial performance and position and should also set out the principal risks and doubts facing the business.

Additionally to disclosing the above information, the directors' report must consist of a declaration that the directors are not responsive of any other information that the auditors might require in preparing their audit report. Additionally, the report must declare that the directors have taken steps to make sure that the auditors are responsive of all appropriate information. The auditors do not perform an audit of the directors' report.

Though, they will verify to see that the information in the report is reliable with that contained in the audited financial statements.

For companies that are listed on the Stock Exchange, the law also needs the publication of an annual remuneration report of directors. This should assist shareholders to assess whether the rewards received through directors are right.

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