Strategic Reports

Overview

Companies reporting under FRS 102 that exceed the small company thresholds must prepare a Strategic Report.

You’ll need one if your business meets any of these criteria:

  • Turnover > £10 million
  • Balance sheet total > £5 million
  • More than 50 employees

✅ What Must Be Included


All qualifying companies must include the following components in their strategic report:

  • Fair Review of the Business

    Provide a balanced and comprehensive account of the business’s development, performance, and position during the financial year. Clearly describe the principal risks and uncertainties.

  • Key Performance Indicators (KPIs)

    Include financial KPIs necessary to understand the business’s development and performance. Where relevant, include non-financial KPIs such as environmental or employee metrics.

  • References to Annual Accounts

    When appropriate, reference and explain figures from the annual accounts to enhance understanding of the business performance.


📂 Guidance & Examples

Here are resources to help you draft your report:


💡 Tips for Effective Reporting


  • Use summary tables or charts for KPIs to aid readability.
  • Add a “Risk Summary” box to highlight key risks at a glance.
  • Consider including a visual roadmap or performance dashboard to present metrics clearly.
  • Maintain consistent headings (e.g., Overview, KPIs, Risks, Account Refs) across all support articles for uniformity.

Additional Topics You May Consider


  • Guidance on size thresholds, including how to assess whether a company qualifies as “small.”
  • Requirements for quoted companies, such as strategy, business model, gender split, and sustainability disclosures—where applicable.
  • Advice on approval and signing procedures—that the board must approve and sign the report.
  • Highlight any exemptions or differences applicable to medium-sized or quoted companies.

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