Surveying OFRs And Narrative Reporting In Annual Reports - Part 2

Article by Martyn Jones, Sarah Kershaw, Ian Krieger, Alice Patrick, Kirsty Searles, Isobel Sharp and David Viles

THE CHALLENGES FOR 2006

Inclusion of an OFR in the annual report is mandatory for all GB quoted companies for periods beginning on or after 1 April 2005. Companies should benefit from a year in which they may produce an OFR without submitting themselves and their boards to official scrutiny by the Financial Reporting Review Panel (FRRP). However for periods commencing on or after 1 April 2006, the Panel will have the authority to hold companies to account if they fail to comply with the legal requirements relating to OFRs. The Panel will then be able to apply to the court for a declaration that the OFR of a quoted company does not comply with the requirements of the Companies Act and for an order requiring the directors to prepare a revised OFR.