These Regulations implement certain EU legislation to enforce greater transparency for businesses when disclosing financial documentation. More specifically, the Regulations implement aspects of Directive 2014/95/EU on disclosure of non-financial and diversity information by certain large undertakings and groups (NFRD) and Directive 2013/34/EU on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings.
For context, the NFRD imposes an obligation on certain large undertakings which are public interest entities (banks, insurers, financial services and listed companies) and have more than 500 employees, to disclose a range of non-financial information. The Regulations also permit disclosure of this information on a voluntary basis, and provide that there is no exemption from the requirement to produce group accounts under the Companies Act 2006 for an undertaking which is part of a small group that has a public interest entity which is established in an EEA State as a member.
