{
  "url": "https://openlegislation.uk/companies-act-1985/schedule-7/paragraph-5A",
  "json_url": "https://openlegislation.uk/companies-act-1985/schedule-7/paragraph-5A.json",
  "legislation": "ukpga/1985/6",
  "legislation_title": "Companies Act 1985",
  "legislation_url": "https://openlegislation.uk/companies-act-1985",
  "path": "schedule/7/paragraph/5A",
  "kind": "paragraph",
  "number": "5A",
  "heading": "Financial instruments",
  "text": "(1) In relation to the use of financial instruments by a company . . . , the directors' report must contain an indication of –\n(a) the financial risk management objectives and policies of the company . . . , including the policy for hedging each major type of forecasted transaction for which hedge accounting is used, and\n(b) the exposure of the company . . . to price risk, credit risk, liquidity risk and cash flow risk,\nunless such information is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company . . . .\n(1A) In relation to a group directors' report sub-paragraph (1) has effect as if the references to the company were references to the company and its subsidiary undertakings included in the consolidation.\n(2) In sub-paragraph (1) the expressions “hedge accounting”, “price risk”, “credit risk”, “liquidity risk” and “cash flow risk” have the same meaning as they have in Council Directive 78/660/EEC on the annual accounts of certain types of companies, and in Council Directive 83/349/EEC on consolidated accounts, as amended.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Sch. 7 para. 5A(1) omitted (22.3.2005) by virtue of The Companies Act 1985 (Operating and Financial Review and Directors' Report etc.) Regulations 2005 (S.I. 2005/1011), reg. 7(3)(a)(i)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Sch. 7 para. 5A(1) omitted (22.3.2005) by virtue of The Companies Act 1985 (Operating and Financial Review and Directors' Report etc.) Regulations 2005 (S.I. 2005/1011), reg. 7(3)(a)(ii)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Sch. 7 para. 5A(1A) inserted (22.3.2005) by The Companies Act 1985 (Operating and Financial Review and Directors' Report etc.) Regulations 2005 (S.I. 2005/1011), reg. 7(3)(b)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Sch. 7 para. 5A extended (with modifications) (E.W.S.) (19.12.1993) by S.I. 1993/3245, reg. 3(3)(g) (as amended (1.10.2005) by The Insurance Accounts Directive (Miscellaneous Insurance Undertakings) (Amendment) Regulations 2005 (S.I. 2005/1985), reg. 2(2)(d))"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1985/6/schedule/7/paragraph/5A",
    "retrieved_at": "2026-10-29T10:00:40.159612+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}