Changes to the Governance Code introduced a directors’ longer-term viability statement into annual reports for years beginning on or after 1 October 2014. The Code also requires a basis for this conclusion.
In a practical guide to viability reporting we explain how to approach the statement and how it should connect with companies’ existing reporting.
The requirements mark a shift towards longer term thinking for business viability and risk management.
Companies must also explain the basis for this conclusion. While it’s natural to focus on the directors’ confirmation, getting the description of the assessment right is key.
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