Abbreviated accounts definition

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Accounts and reports—glossary of terms

Accounts and reports—glossary of terms Brexit impact The UK corporate reporting framework may be affected by Brexit. For further details of its impact, see Brexit—accounts and reports. A Abbreviated accounts If the accounts of a small company (that is not a micro-entity) relate to financial years beginning before 1 January 2016 (or financial years beginning before 1 January 2015, if the directors of the company decide that the provisions of the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (SI 2015/980) should take early effect), it may file abbreviated accounts at Companies House, rather than its full accounts.If the accounts of that same company relate to financial years beginning on or after 1 January 2016 (or financial years beginning on or after 1 January 2015, if the directors so decide) it may file abridged accounts at Companies House if it chooses to do so and all the members of the company have consented to the abridgement.The required level of disclosure in abbreviated accounts is lower than the level required in full accounts. One of the key advantages of filing abbreviated accounts is that a small company may preserve some degree of confidentiality about its activities. For further information see Practice Note: Filing of a company’s accounts and reports. ABI See Association of British Insurers. Abridged accounts The Companies,

Company accounts for restructuring & insolvency lawyers

Company accounts for restructuring & insolvency lawyers This Practice Note is intended to provide an overview of company accounts for lawyers specialising in restructuring and insolvency. The scope of this note is confined to limited liability companies with some additional references to the requirements for listed companies. The requirements for limited liability partnerships are broadly similar to those of private limited companies. This Practice Note covers the following: • Financial reporting obligations and standards in the UK—general requirements • The audit report • Consequences of filing company accounts late in order to complete a restructuring • Additional financial information that a company may provide to creditors during a restructuring • Obligation to file accounts ceases upon company entering insolvency process • Assets and liabilities of particular interest to insolvency professionals The terms ‘accounts’ and ‘financial statements’ are used interchangeably. This practice note adopts the term ‘Accounts’. Financial reporting obligations and standards in the UK—general requirements Basic requirements under the Companies Act 2006 All incorporated entities in the UK have obligations under the Companies Act 2006 (CA 2006) to keep accounting records, and prepare and file annual accounts with the Registrar of Companies. Once filed, these accounts are available to the general public (with a delay of around two

EU Accounting Directive—summary of main provisions

EU Accounting Directive—summary of main provisions This Practice Note provides an overview of the main provisions of the EU Accounting data-ln-csis="428170" data-ln-lnis="61JH-9Y03-GXFD-82D8-00000-00">Directive (2013/34/EU) and the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 which originally transposed the requirements of the Directive into UK law. Background The EU Accounting Directive, Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (the Directive) set out a new regime for the form and content of annual financial statements, and had the fundamental objective of modernising and streamlining reporting requirements for the smallest entities (the ‘think small first’ approach). The UK implemented the Directive through the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (the 2015 Regulations). Companies were required to apply the new financial reporting framework for financial years commencing on or after 1 January 2016. The Directive was subsequently amended by Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 as regards disclosure of non-financial and diversity information by certain large undertakings and groups (the 2014 Directive). This note first summarises the main provisions of the

Filing of company’s accounts and reports

Filing of company’s accounts and reports The directors of a company have a duty to deliver its accounts and reports for each financial year to Companies House, subject to the exemptions for certain unlimited companies (see: Unlimited Companies) and dormant subsidiaries (see Practice Note: Dormant companies—accounts and audit—Dormant company exemption from the requirement to file accounts). According to the status of the company in the financial year in question, there will be some variation in the form and content of the accounts and reports that are filed. For a general overview of the Companies Act 2006 (CA 2006) provisions governing company annual accounts and reports, see Practice Note: Accounts and reports—an outline of the statutory framework. As a result of the coronavirus pandemic the Corporate Insolvency and Governance Act 2020 and the Companies etc. (Filing Requirements) (Temporary Modifications) Regulations 2020 provided temporary extensions of the period for companies to file their accounts and reports. For further information see What if companies need more time to publish and file their accounts? in Practice Note: Coronavirus (COVID-19)—impact on annual accounts and reports and also Practice Note: Coronavirus (COVID–19)—impact on company filing and administrative procedures. Time limits for filing accounts and reports with

Filing of LLP accounts and auditor’s reports

Filing of LLP accounts and auditor’s reports The members of an LLP have a duty to deliver its accounts and reports for each financial year to Companies House, unless the LLP falls within the dormant subsidiaries exemption in section 448A of the Companies Act 2006 (CA 2006). The availability of the dormant subsidiaries exemption to LLPs is identical to that applicable to companies and is discussed further in Practice Note: Dormant companies—accounts and audit—Dormant company exemption from the requirement to file accounts. According to the status of the LLP in the financial year in question, there will be some variation in the form and content of the accounts and reports that are filed. For a general overview of the statutory framework governing LLP annual accounts and reports, see Practice Note: LLP Accounts and reports—an outline of the statutory framework. As a result of the coronavirus pandemic the Corporate Insolvency and Governance Act 2020 and the Companies etc. (Filing Requirements) (Temporary Modifications) Regulations 2020 provided temporary extensions of the period for companies to file their accounts and reports. For further information see What if companies need more time to publish and file their accounts? in Practice Note: Coronavirus (COVID-19)—impact on annual accounts and reports and also Practice Note:

The Pension Protection Fund—the pension protection levy

The Pension Protection Fund—the pension protection levy CORONAVIRUS (COVID-19) UPDATE: As a result of coronavirus, the PPF decided to make certain changes to its policies. For instance, the PPF will accept e-signatures and other forms of confirmation for PPF-specific documents (eg officer’s certificates), but will not accept paper s 120 notifications. Moreover, to help businesses and schemes pay their levy invoices during the pandemic, the PPF put in place various measures for the levy years 2020/21, 2021/22 and 2022/23 which limit the size of that levy and allow for the late payment of the levy. These measures are discussed in this Practice Note. The PPF has also introduced the option of electronic levy invoices. For more information, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees—The PPF’s position. The Pension Protection Fund (PPF) is a statutory fund established under the provisions of the Pensions Act 2004 (PeA 2004) whose principal purpose is to provide compensatory benefits to members of eligible defined benefit (DB) occupational pension schemes where: • the scheme’s sponsoring employer(s) has suffered a qualifying insolvency event, and • the scheme’s funding position is such that its net assets are less than its ‘protected liabilities’. Broadly speaking, protected liabilities are measured by reference to: ◦ the cost

Revision of defective accounts and reports

Revision of defective accounts and reports Rules and guidance The statutory provisions governing the amendment, correction or revision of defective accounts and reports are set out in

The Pension Protection Fund—reducing the risk-based levy

The Pension Protection Fund—reducing the risk-based levy CORONAVIRUS (COVID-19) UPDATE: As a result of coronavirus, the PPF decided to make certain changes to its policies. For instance, the PPF will accept e-signatures and other forms of confirmation for PPF-specific documents (eg officer’s certificates), but will not accept paper s120 notifications. Moreover, to help businesses and schemes pay their levy invoices during the pandemic, the PPF put in place various measures for the levy years 2020/21, 2021/22 and 2022/23 which limit the size of that levy and/or allow for the late payment of the levy. For more information, see Practice Note: The Pension Protection Fund—the pension protection levy. The PPF has also introduced the option of electronic levy invoices. For more information, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees — The PPF’s position. The PPF levy The Pension Protection Fund (PPF) imposes an annual levy on pension schemes, which is used to help fund the PPF and, in particular, to pay compensation to members of eligible defined benefit schemes. The levy year runs from 1 April to 31 March. The levy is divided into two parts: • a scheme-based levy • a risk-based levy The scheme-based levy is based on a scheme’s liabilities to members (measured in accordance with section 179 of the Pensions Act 2004 (

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Letter of claim—against an accountant for breach of contract and, or alternatively, negligence in preparing accounts

Letter of claim—against an accountant for breach of contract and, or alternatively, negligence in preparing accounts [ON THE HEADED NOTEPAPER OF CLAIMANT’S SOLICITORS] FAO [MANAGING PARTNER] [NAME OF DEFENDANT ACCOUNTANT] [ADDRESS LINE 1] [ADDRESS LINE 2] [POSTCODE] [DATE] Dear [insert organisation name] [PROSPECTIVE CLAIMANT’S NAME] AND [PROSPECTIVE DEFENDANT’S NAME] LETTER OF CLAIM We write further to our letter dated [insert date of your preliminary notice of claim, if sent]. That letter was a preliminary notice of claim sent pursuant to the Pre-Action Protocol for Professional Negligence, and required an acknowledgment by [insert date]. We are in receipt of your letter dated [insert date] acknowledging receipt of the preliminary notice. [However, we await confirmation that your professional insurers have been advised of the circumstances of our client’s claim against you. We also request that you pass a copy of this letter to them, and confirm to us that you have done so.] 1 Overview 1.1 As you are aware, we act for [insert claimant’s name]. 1.2 We are instructed that in or around [insert date] you were instructed to act as our client’s accountant. In particular, you were instructed to prepare, on behalf of our client, our client’s [full statutory] [abbreviated] accounts for the tax year[s] [insert date(s)]. 1.3 As more particularly detailed below, it is our client’s position that as a result of your negligent acts [and/or omissions] during the course of your retainer, and in particular the negligent

Preliminary notice of claim—against an accountant for breach of contract and, or alternatively, negligence in preparing accounts

Preliminary notice of claim—against an accountant for breach of contract and, or alternatively, negligence in preparing accounts [ON THE HEADED NOTEPAPER OF CLAIMANT’S SOLICITORS] FAO [MANAGING PARTNER] [NAME OF DEFENDANT ACCOUNTANT] [ADDRESS LINE 1] [ADDRESS LINE 2] [POSTCODE] [DATE] Dear [insert organisation name] [PROSPECTIVE CLAIMANT’S NAME] AND [PROSPECTIVE DEFENDANT’S NAME] Preliminary notice of claim We write on behalf of our client [insert client’s name]. This letter is our client’s preliminary notice of claim (‘Preliminary Notice’), as required by the Pre-Action Protocol for Professional Negligence (the ‘Protocol’), paragraph 5.1, a copy of which is enclosed for your ease of reference. Parties to the

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Are shareholders entitled to full accounts even if only abridged and unaudited accounts are filed at Companies House?

Are shareholders entitled to full accounts even if only abridged and unaudited accounts are filed at Companies House? The rules relating to accounts and audit are many and complex. While the directors of every company must prepare accounts for each financial year, the requirements vary significantly depending on whether the company is quoted or unquoted, and if unquoted, whether it is medium-sized, small or a micro-entity (or dormant). For further information and links to detailed materials on the accounting regimes for the different sizes of company, see Practice Note: Accounts and reports—an outline of the statutory framework. The position as regards audit is also dependent on a number of circumstances and exemptions. Under section 475 of the Companies Act 2006 (CA 2006), a company is required to have its annual accounts for a financial year audited in accordance with

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Lexis®PSL Corporate weekly highlights—13 April 2017

Welcome to the weekly highlights from the Lexis®PSL Corporate team for the week ending 13 April 2017, which provide news updates, a comprehensive list of dates for your diary as well as information about new content and Market Tracker. This week’s edition features news of: the coming into force of new rules on gender pay gap reporting, the publication of the PIRC UK Shareowner Voting Guidelines 2017; a recent poll on stakeholder engagement; updated ICAEW and ICAS guidance on realised and distributable profits; Companies House’s updated guidance on filing accounts; a proposed public beneficial ownership register for overseas entities holding UK property; the impact of the Insolvency (England and Wales) Rules 2016; and ESMA’s updated Q&As on AIFMD and UCITS. There is also analysis of the Supreme Court case, Wood v Capital Insurance Services, concerning contractual interpretation. This week we have published a new Precedent, a new Checklist, eight new Q&As, as well as significantly updated ten Practice Notes.

Lexis®PSL Corporate weekly highlights—5 May 2016

Welcome to the weekly highlights from the Lexis®PSL Corporate team for the week ending 5 May 2016, which provides news updates and a comprehensive list of dates for your diary. This week’s edition includes updates on guidance from Companies House on regulations removing the ability for small and medium-sized companies to file abbreviated accounts; a new issue of Inside AIM from the London Stock Exchange to support nominated advisers as they work with their clients to prepare them for the introduction of the Market Abuse Regulation; the Financial Conduct Authority’s policy statement on two consultations relating to MAR and the delay of disclosure of inside information, as well as updates relating to the Markets in Financial Instruments Directive. It also includes new Q&As and highlights our new template register of people with significant control.

Lexis®PSL Share Incentives weekly highlights—5 May 2016

This week’s edition of Share Incentives highlights includes (1) an update on the Financial Conduct Authority’s policy statement on the implementation of MAR and (2) further news from the London Stock Exchange regarding AIM Rules changes in preparation for MAR.