| 34 | The DTR require half-yearly financial reports to include a half-yearly management report which must include at least an indication of important events that have occurred during the first six months of the financial year, their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the year. Any additional material to be contained in the report, as outlined in the paragraphs below, should be considered in the context of what is needed to meet the requirements of the DTR. The half-yearly management report is not intended to be as comprehensive as an operating and financial review (OFR), but should include any significant information enabling investors to make an informed assessment of the trend of the entity's activities and profit or loss. Half-yearly management reports should focus attention on areas of change since the last set of annual financial statements. A balanced narrative commentary that explains the reasons for significant movements in key performance indicators and indicates perceived trends within the business is an important feature of a half-yearly financial report, providing management with the opportunity to report on its stewardship of the business as a whole. |
| 35 | The half-yearly management report should disclose as major related parties' transactions, as a minimum: |
| (a) | related parties' transactions that have taken place in the first half-year and have had a material effect on the financial position or the performance of the entity during the half-year; |
| (b) | any changes in the related parties' transactions described in the last annual report that could have a material effect on the financial position or performance of the enterprise in the first half-year of the current financial year. |
| 36 | Attention should be drawn to events and changes within the period that are likely to have a significant effect on the succeeding period despite having had relatively little impact in the current period. |
| 37 | The commentary should describe the nature of any seasonal activity and, together with other disclosures, provide adequate information for the performance of the business and its financial position at the end of the period to be understood in the context of the annual cycle. The principles by which seasonal results are reflected in the half-yearly report should be stated, particularly where there are any expected changes in the effects of seasonality. |
| 38 | As well as referring to trading performance, the commentary should draw attention to the condensed balance sheet and cash flow statement. It should also highlight and explain significant changes since the last annual financial statements, particularly regarding movements in working capital, liquidity and net debt that are likely to be of value to users in their assessment of the business. |
| 39 | The commentary should explain any other matter that management thinks would help users to understand the report. This would include for example, where relevant: |
| acquisitions and disposals of major fixed assets or investments during the period covered by the report; |
| changes in estimates for liabilities, commitments and off balance sheet financial instruments since the previous year-end; |
| material changes in capital structure or financing; and |
| events arising after the end of the period covered by the half-year financial report. |
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