UK strategic report
The Companies Act 2006 and related requirements determine which entities must prepare the report and its contents. It typically helps members assess how directors have performed their duty to promote the success of the company and may address the business, performance and principal risks as required. Small-company and micro-entity exemptions apply where statutory conditions are met. Apply the law and guidance relevant to the company’s reporting period; it is not an IFRS requirement imposed on every company worldwide.
Worked example
A UK company assesses whether it qualifies for the small-companies exemption before deciding whether a strategic report is required. A larger company within scope prepares the report using the applicable statutory requirements and guidance.
Common mistake
Claiming every UK incorporated company must prepare a strategic report, ignoring exemptions, or presenting it as a universal IFRS requirement.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Supporting | September 2026–June 2027 |