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:
- Illustrative Accounts – Grant Thornton
- Sample Report: Magnificent Cuisine Ltd (a fictional company)
- FRC Strategic Report Guidance
- Real-World Filings via Companies House
💡 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.