Why is a directors report important?
In order for shareholders to make informed decisions when casting their votes at annual or other meetings, the Directors’ Report provides part of that essential minimum standard of information.
It is complemented by the Director’s Remuneration Report and the Company Accounts..
Who is required to prepare financial statements?
Financial statements are prepared in the following order: Income Statement. Statement of Retained Earnings – also called Statement of Owners’ Equity. The Balance Sheet.
What does Directors report contain?
Public companies must include in their Directors Report: The name of each director, their qualifications, experience and special responsibilities; Each director’s attendance of board and board committee meetings; Name of other officers and auditors plus the qualifications and experience of the company secretary.
Do all directors need to sign accounts?
(1)A company’s annual accounts must be approved by the board of directors and signed on behalf of the board by a director of the company. (2)The signature must be on the company’s balance sheet.
Who is responsible for filing company accounts?
Full financial statements must be circulated to the shareholders. The directors are also legally responsible for filing the accounts with Companies House (see 8).
Do directors prepare financial statements?
Directors prepare financial statements; audit committees monitor the integrity of financial information.