Non-financial reporting review to include company size thresholds
Published May 31, 2023
Regulators have launched a review of the rules facing UK companies when reporting on their non-financial performance in their annual reports.
The Department for Business and Trade and Financial Reporting Council is to take a look at the current reporting requirements, in particular whether company size thresholds for non-financial reporting are appropriate.
Under the current rules, certain non-financial reporting requirements are determined by company size thresholds (micro, small, medium and large). The size thresholds also affect what a company needs to do to prepare accounts for Companies House.
The review is part of a drive by the UK government to reduce red tape after leaving the European Union. The review will consider what the opportunities are to streamline reporting requirements; the size thresholds which determine whether companies must comply with certain requirements; the future of the UK’s non-financial reporting framework.
The Companies Act 2006 uses a range of thresholds to determine whether a company must comply with non-financial reporting requirements. The review will explore how these could be simplified, for instance, adopting a tiered approach to corporate reporting where the most economically significant companies are required to produce the most detailed reporting. As part of the review, the government will look at whether the existing micro-entity, small and medium reporting thresholds are set at appropriate levels.The consultation closes on 16 August 2023
Non-Financial Reporting Review Call for Evidence
Department for Business and Trade and Financial Reporting Council