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Reform of Companies Act prompts businesses to act quickly

Experts are warning that changes to the Companies Act will result in businesses having to move faster on collating.

From the 1st of October, annual reports will need to include company data regarding an approach to human rights, greenhouse gas emission levels and gender representation, making it more imperative than ever that businesses invest in quality accounting, whether they need an accountant in the Wirral area or anywhere else in the UK.

The alterations are part of reforms put into action to strengthen and simplify non-financial reports; allowing for a fairer representation of the firm.

The business review will be replaced by a strategic report. The purpose of this is to assist businesses in telling their own story, including challenges, risks, business model and strategy.

Talking about the effects of the changes, Jo Swinson, Business Minister, said:

“In order for shareholders to fully hold a company to account they need to have the right information to hand. Annual reports are a key tool for shareholders to get a good understanding as to how a company is performing, but they need to be produced in an open and transparent way.”

Included in the requirements are detailed analysis of the firm itself, senior management and board gender, as well as disclosure of issues around human rights and green credential information that will indicate the company’s future direction.

Some requirements were taken out so there should not, theoretically, be an increased burden placed on businesses.

Posted by Peter
June 19, 2013
Small Business

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