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Directors' report: business review
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327. (1) The directors' report for a financial year shall contain—
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(a) a fair review of the business of the company, and
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(b) a description of the principal risks and uncertainties facing the company.
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(2) The review required by subsection (1) shall be a balanced and comprehensive analysis of—
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(a) the development and performance of the business of the company during the financial year, and
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(b) the assets and liabilities and financial position of the company at the end of the financial year,
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consistent with the size and complexity of the business.
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(3) The review required by subsection (1) shall, to the extent necessary for an understanding of such development, performance or financial position or assets and liabilities, include—
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(a) an analysis of financial key performance indicators, and
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(b) where appropriate, an analysis using non-financial key performance indicators, including information relating to environmental and employee matters.
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(4) The directors' report shall, where appropriate, include additional explanations of amounts included in the statutory financial statements of the company.
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(5) The review required by subsection (1) shall include an indication of likely future developments in the business of the company.
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(6) In relation to a group directors' report, this section has effect as if the references to the company were references to the company and its subsidiary undertakings included in the consolidation.
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(7) In this section, “key performance indicators” means factors by reference to which the development, performance and financial position of the business of the company can be measured effectively.
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