Clare Copeman sets the record straight on operating and financial disclosure and what, if anything, applies to professional practices.
There has been a good deal of confusion over the requirement for Operating and Financial Reviews (OFRs) on business performance. Firms can be forgiven for failing to understand exactly which disclosure requirements apply.
Brown’s bombshell
In November, the Chancellor made a surprise announcement that the OFR will in fact not be a mandatory requirement for fully listed companies. This apparent u-turn contradicted legislation (Statutory Instrument 1011 2005) which came into force in March last year, stating that quoted companies were obliged to publish an OFR providing a range of backward and forward looking analysis on factors underlying their business’ position and performance. This requirement was effective for accounts for financial periods beginning on or after 1 April 2005 (so, in most cases, for yearends on or after 31 March 2006).
