4.4 The directors' report

Question 1

What is the purpose of the directors’ report?

Answer 1

To inform members of the company of the financial state of the company, and its compliance with various standards.

Question 2

Where is the directors report generally positioned in the annual report?

Answer 2

After the strategic report.

Question 3

Which legislation requires preparation of a directors’ report?

Answer 3

S 415 CA 2006

Question 4

What information must be disclosed in the directors’ report?

Answer 4

• names of all directors
• summary of trading activities
• summary of future prospects
• principal activities of the company and its subs
• the amount of dividend recommended by the directors of the reporting year
• financial events occurring after the date of the balance sheet
• significant changes to the company’s fixed assets
• a statement confirming that all relevant audit information has been provided.
• directors statement of responsibilities
• a record of all board committee meetings with attendance record