The following Corporate guidance note provides comprehensive and up to date legal information covering:
A company's annual report and accounts will often include an appropriate description of directors' relevant responsibilities for the preparation of those accounts. Certain companies are legally required to include such directors' responsibility statements and other companies include them as a matter of best practice. This Practice Note summarises the requirements to include directors’ responsibilities statements within the annual accounts and reports of certain companies under the Disclosure Guidance and Transparency Rules (DTRs) of the Financial Conduct Authority (FCA), the UK Corporate Governance Code (UKCG Code) of the Financial Reporting Council (FRC) and the Listing Rules of the FCA (Listing Rules) .
The origins of the directors' responsibility statement can be found in the 1992 Cadbury report, which recommended that the report and accounts of a company should include a formal statement by its directors to the effect that responsibility for preparing the accounts rests with the board of directors, and that this should be positioned alongside a statement by the auditors in the auditors' report about their reporting responsibilities. The purpose of such a statement is to make it clear to shareholders where the boundaries between the duties of directors and auditors lie and to remove any misconception that the auditors are responsible for the accounts.
Responsibility statements were introduced for issuers of securities on regulated markets by the Transparency Directive 2004/109/EC, which
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.