Background

The Companies Act 2006 requires that UK companies should prepare a report and annual accounts and send them to shareholders. Most companies are then required to file the report and accounts on the public record at Companies House; certain small and medium-sized companies may instead file abbreviated information at Companies House. Quoted companies are required to make a copy of their report and accounts available on a website. Of particular interest to many listed companies is the provision permitting companies (previously limited to listed companies, but now available to all companies) to send a summary financial statement to shareholders in place of the full report and annual accounts (see below).

In addition to the Companies Act, listed companies have to comply with the Listing Rules and the Disclosure and Transparency Rules, both of which are issued by the Financial Services Authority. With respect to periodic financial reporting, the requirements include:

• Selected additional disclosures in the annual report and accounts – for example, relating to corporate governance matters.

• Release of half-yearly financial report for the first six months of the year. In the past these have frequently been referred to as the ‘interims’, although now that there is also a requirement for interim management statements (see below) it is preferable to use the term ‘half-yearly report’. IAS 34 must be followed in the preparation of the half-yearly reports (unless the listed entity is not a group and is still applying UK GAAP, in which case an ASB statement becomes mandatory).

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