Last reviewed 12 March 2014
Under the Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013, all large and medium-sized companies must prepare a separate Strategic Report for financial periods ending on or after 30 September 2013. There is no longer a requirement to produce a business review.
According to the Charity Commission’s Statement of Recommended Practice (SORP) Committee, the Regulations will not change the content of the Trustees’ Annual Report, which is currently required by the 2005 SORP. The structure will, however, change as follows.
Reference and administrative details of the charity, its trustees and advisors.
Structure, governance and management.
Objectives and activities.
Strategic Report including:
achievements and performance
plans for future periods
principal risks and uncertainties
funds held as custodian trustees on behalf of others.
In addition, the trustees must include a clear statement that they are also approving the strategic report in their capacity as company directors.
The Education Funding Agency is currently considering if it will continue to use the Charity SORP. If so, medium-sized and large academies will be affected by this change for the 31 August 2014 accounting period. Details of exactly what they must include in their trustees’ report will become clear in May 2014 when the new edition of the Accounts Direction is released.