Guidance on the Strategic Report
4 minute read
| Name | Guidance on the Strategic Report (February 2026) |
|---|---|
| Publication date | 4 February 2026 |
| Type | Guidance |
| Format | PDF, 867.7 KB |
Introduction
In 2014, at the request of the Department for Business, Innovation and Skills (BIS, now the Department for Business and Trade (DBT)) the FRC developed and published non-mandatory guidance on the application of the strategic report requirements introduced into the Companies Act 2006 by 'The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013' (SI 2013/1970) (the 2013 Regulations).
The Guidance on the Strategic Report (the Guidance) is set in the context of the annual report as a whole to recognise that the strategic report does not exist in isolation from other aspects of corporate reporting.
The Guidance includes communication principles that emphasise the qualities of good corporate reporting. It encourages companies to focus on the application of materiality to disclosures, and to be innovative in the structuring of information to 'tell their story' and improve the clarity, conciseness and cohesiveness of information.
The Guidance is intended to serve as a proportionate and practical guide to help entities meet their reporting obligations in a way that is proportionate and supports high-quality reporting. High-quality strategic reports provide shareholders and other primary users with a holistic and meaningful picture of the entity's development, performance, position and future prospects.
The Guidance was revised in 2018 and in 2022 to incorporate additional reporting requirements introduced into the Companies Act 2006.
In 2025 Appendices II, III, IV(a) and IV(b) in the Guidance on the Strategic Report (2022) were superseded by an updated Scoping Tables document (see below).
The Guidance was revised in 2026 following a comprehensive periodic review, with amendments made to restructure the guidance, to reflect changes to the reporting framework (including changes to the disclosure requirements in the Companies Act 2006 relating to directors' reports and the UK Corporate Governance Code 2024) and limited other updates to the good practice guidance. The FRC expects to make further amendments to the Guidance to reflect any changes to reporting requirements resulting from DBT's ongoing 'Modernising Corporate Reporting' programme.
Scoping tables
Tables summarising the disclosure requirements of the Companies Act 2006 and its associated regulations for companies, qualifying partnerships and limited liability partnerships (LLPs) in respect of the strategic report, the directors' report, and the energy and carbon report.
Companies should refer to the relevant edition of the Scoping Tables considering their financial year and the effective date of legislation.
| Name | Companies Act 2006 Disclosure Requirements for the Strategic Report, Directors' Report and Energy and Carbon Report: Scoping Tables (February 2026) |
|---|---|
| Publication date | 4 February 2026 |
| Notes | Effective from 1 January 2026 The document was updated to include the disclosures introduced by The Companies (Directors' Report) (Payment Reporting) Regulations 2025 (SI 2025/1152) that are effective for financial years beginning on or after 1 January 2026, along with minor editorial changes. |
| Format | PDF, 584.3 KB |
| Name | Companies Act 2006 Disclosure Requirements for the Strategic Report, Directors' Report and Energy and Carbon Report: Scoping Tables (March 2025) |
|---|---|
| Publication date | 21 March 2025 |
| Notes | Effective from 6 April 2025 The March 2025 edition reflected amendments introduced by The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 (SI 2024/1303) effective for financial years beginning on or after 6 April 2025. In addition, the tables incorporated the following updates: a summary column of the relevant requirement, explanations of scoping categories and a number of other amendments to align with legislative requirements and improve usability. |
| Format | PDF, 460.2 KB. View HTML version |
Communication principles
The strategic report and the annual report are communication between companies and their shareholders. We encourage companies to use the following communication principles to enhance the quality of their corporate reporting.
Clarifications of the Regulations
- While developing the initial 2014 Guidance, the FRC worked closely with the Department for Business, Innovation and Skills (BIS), now the Department for Business and Trade (DBT). During the consultation process the FRC received a number of queries on legal matters related to the 2013 Regulations. BIS provided clarifications on these matters in a letter to the FRC (PDF).
- In respect of 'The Companies (Miscellaneous Reporting) Regulations 2018', the Department for Business, Energy and Industrial Strategy (BEIS), now DBT, issued some frequently asked questions to support the legislative requirements. Guidance on the application of the section 172 duty is provided by the GC100 and the Investor Group.
- Guidance in the form of non-binding Q&A to support companies and LLPs in their application of the climate-related financial requirements was prepared by BEIS, now the Department for Energy Security and Net Zero (DESNZ).
Further information including previous editions
| Name | Guidance on the Strategic Report (June 2022) |
|---|---|
| Publication date | 16 June 2022 |
| Type | Guidance |
| Format | PDF, 895.2 KB. View HTML version |
| Name | Strategic Report Editorial amendments |
| Publication date | 30 June 2020 |
| Format | PDF, 102.0 KB. View HTML version |
| Name | Guidance on the Strategic Report – Appendix II and Appendix III |
| Publication date | 31 May 2020 |
| Type | Editorial correction |
| Format | PDF, 99.5 KB. View HTML version |
| Name | Guidance on the Strategic Report |
| Publication date | 31 July 2018 |
| Type | Guidance |
| Format | PDF, 1.4 MB. View HTML version |
| Name | Feedback Statement: Amendments to the Guidance on the Strategic Report |
| Publication date | 31 July 2018 |
| Type | Feedback paper |
| Format | PDF, 425.3 KB. View HTML version |
| Name | Invitation to comment: Draft Amendments to Strategic Report |
| Publication date | 17 August 2017 |
| Type | Exposure draft |
| Format | PDF, 460.3 KB |
| Name | Non-Financial Reporting Directive Factsheet |
| Publication date | 26 July 2017 |
| Type | Information sheet |
| Format | PDF, 161.9 KB. View HTML version |
| Name | 2014 Guidance on the Strategic Report |
| Publication date | 30 June 2014 |
| Type | Guidance |
| Format | PDF, 674.7 KB. View HTML version |
| Name | Feedback Statement: Guidance on the Strategic Report |
| Publication date | 9 June 2014 |
| Type | Feedback paper |
| Format | PDF, 680.1 KB. View HTML version |
| Name | Exposure Draft - Guidance on the Strategic Report 2013 |
| Publication date | 31 August 2013 |
| Type | Exposure draft |
| Format | PDF, 463.4 KB |
| Name | FRC Staff Guidance Note - Strategic Report Regulations |
| Publication date | 15 August 2013 |
| Type | Guidance |
| Format | PDF, 151.1 KB. View HTML version |