directieverslag

Directieverslag, commonly translated as the management report, is a narrative section that accompanies the annual financial statements of a Dutch company. It provides background and context for the numbers in the balance sheet and income statement, offering the management’s view on the development, position and performance of the business during the financial year.

Content and purpose: A directieverslag typically describes the course of business, including key events, transactions and initiatives that affected results. It outlines the company’s financial position, liquidity and capital resources, and discusses principal risks and uncertainties facing the business. It may also cover governance and internal control matters, policies on sustainability or social responsibility, information about employees, and notable events after the balance sheet date. Some entities include a view on expected developments and strategic priorities for the coming year.

Legal context and scope: The requirement to prepare a directieverslag depends on Dutch corporate law and is linked to the size and type of the entity. Larger companies generally publish a full management report as part of their annual accounts; smaller entities may be exempt or provide a simplified version, subject to applicable rules. The directieverslag is prepared by the management board and forms part of the publicly available annual accounts filed with the relevant authorities and shared with shareholders.

Relation to other reports: The directieverslag complements the financial statements and, where applicable, non-financial or governance disclosures mandated for certain entities. It aims to give readers a clearer understanding of the factors behind the financial results and the company’s outlook.