The Financial Reporting Council (FRC) has published an updated version of its Guidance on the Strategic Report.

The disclosures required in strategic reports are governed by the nature of the reporting entity. The Guidance therefore aims to assist companies in determining which provisions of the Companies Act 2006 on the content of the strategic report apply to them. Appendix 2 to the Guidance includes a table summarising the application of the various disclosure requirements.

The FRC's Guidance on this area of corporate reporting was substantially overhauled in 2018 (see our corporate update 2018/16). The changes which have been made in the 2022 edition are much more limited.

The Guidance has been updated to:

  • reflect the introduction of the regulations which require publicly quoted companies, large private companies and large limited liability partnerships to include climate-related disclosures in their strategic reports (see our corporate update 2022/2);
  • reflect the fact that the requirement to produce a strategic report also applies to traded LLPs and banking LLPs; and
  • align the definition of public interest entities (PIEs) in the Guidance with the definition in legislation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.