Directors' report

A directors' report is part of a publicly-held company’s annual report in the United Kingdom. The report includes the following information:

  • A summarization of the company’s trading activities and a discussion of its future prospects

  • The primary activities of the enterprise, as well as any significant changes in those activities during the past fiscal year

  • The names of all the people serving as company directors during the fiscal year of the entity

  • The amount of the dividend that the directors are recommending be paid to shareholders

  • The existence and amount of any events occurring after the balance sheet date that may impact the company’s finances to a material extent

  • Any significant changes in the valuation of the firm’s fixed assets

The company’s outside auditor must issue a report on a company’s directors’ report, noting whether there are any inconsistencies between the information in the report and the firm’s accounts.

Similar Terms

The directors’ report is called the Form 10-K in the United States.

Related Courses

Public Company Accounting & Finance