Companies not complying with Companies Act reporting requirements

I blogged recently about the FRC’s recent report “Effective Company Stewardship: enhancing corporate reporting and audit”. The FRC also gives data showing admittedly lowish levels of outright non-compliance with Companies Act 2006 reporting requirements; although a hefty 32% of accounts examined failed over non-financial KPI’s (Key Performance Indicators). A raw average of 42% of company reports may have complied but were judged to ‘fall short’ on the list below. In view of my previous criticisms, it is noteworthy that whilst 100% of reports complied with requirements in relation to principal risks, a whopping 66% fell short of being adequate. So they supplied the legal boilerplate without giving shareholders adequate information upon which to make judgements.

	% non-compliant	% falling short
Business description	6	52
Strategy	8	44
Principal risks	0	66
Performance and position	4	20
Trends and factors	6	56
Corporate social responsibility	12	34
Contractual arrangements	12	52
Financial KPI’s	6	34
Non-financial KPI’s	32	20