Business Review: illustrative examples
In the absence of clear guidance on the Business Review, PricewaterhouseCoopers' illustrative examples offer an insight into the type of information companies might be expected to provide in order to meet the Business Review legislation (under section 234ZZB of the Companies Act 1985).
The illustrative examples take into account a theme of the Company Law Reform Bill to 'ensure better regulation' and a 'think small first' approach. Accordingly, we propose a pragmatic approach with the amount of information required depending on the extent to which an entity's share ownership structure is dispersed.
For quoted companies much fuller disclosure is necessary to assist members and we recommend they look to the ASB's reporting statement on the operating and financial review as the most appropriate guidance. Consequently, while our objective is to provide additional guidance for all entities, the illustrative examples focus on private entities that do not prepare a voluntary OFR, for example owner-managed companies, wholly owned subsidiaries and AIM-listed entities.
Please note: the Companies Act 2006 introduced enhanced Business Review
requirements for quoted companies only. These amendments have not been considered for these examples as, at the time of writing, they had no legal standing.
