Understanding the directors report

Under Companies Act 2014 there is no requirement to include a Directors Report in a set of Micro-entity accounts providing the disclosures required by Section 328 of the Companies Act 2014 (regarding shares held by the company) are made elsewhere in the accounts.

Sage Final Accounts supports the inclusion of an optional small company Directors Report in the set of accounts prepared for members and for Revenue. This is, however, excluded from the set of accounts prepared for Companies Registration Office (CRO) on the basis that its inclusion is not mandatory.

To remove the Directors Report from the set of accounts prepared for members and revenue, simply navigate to the Directors Report section on the accounts preview and select Remove.

The following sections of the Directors Report are populated via the data tab:

  • Location of accounting records
  • Dividends
  • Political donations
  • Directors and Secretary and their interests

And the remaining sections as follows are written disclosures which can be added directly to the Accounts Preview tab:

  • Principal activities
  • Events after the end of the reporting period
  • Research and Development
  • Branch operations
  • Notice issued under certain banking legislation

Shares held by the company disclosure, if relevant, will always output as a note and not as a section of the Directors Report within Micro-entity FRS 105 accounts to ensure the accounts are fully compliant regardless of whether a director’s report has been included or not.