Abridged 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

Loan relationships—accounting framework and principles

Loan relationships—accounting framework and principles A foundational principle of the loan relationships regime is that companies are taxed on their borrowing and lending activities and other forms of corporate debt on the basis of the measure of profit and loss recognised in their accounts. While the loan relationships rules deviate from this principle in several circumstances, the close link between tax treatment and the accounts means that in order to be able to apply the computational provisions of the loan relationships rules it is necessary to have an understanding of how corporate finance transactions are reflected and measured for accounting purposes. This Practice Notice considers the accounting framework and principles relevant to the taxation of loan relationships, and in particular the following: • what is generally accepted accounting practice (GAAP)? • UK GAAP v international accounting standards • what are the key UK GAAP and IAS accounting standards relevant to loan relationships? • the financial statements and accounting terminology • the concepts of recognition and measurement • how are loan relationships recognised and measured in a company’s accounts under UK GAAP? • how are loan relationships recognised and measured in a company’s accounts under IAS? • special rules for hedging and for compound and hybrid financial instruments • amortised cost and fair value accounting methods For the entities

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

The small companies regime

The small companies regime The statutory rules governing the annual accounts and reports of small companies (other than micro-entities) are set out in: •

The small LLPs regime

The small LLPs regime Rules and guidance The statutory rules governing the annual accounts of small LLPs are set out in: • data-ln-csis="473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 473627 292140 292140 292140 292140 292140 292140 292140 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 274768 data-ln-csis="">

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:

Analysis of equity settled share based payments accounting regime (advanced)

Analysis of equity settled share based payments accounting regime (advanced) This Practice Note looks at some of the more complex issues associated with the equity settled accounting regime. For a more basic overview of the equity settled accounting regime, see Practice Note: Overview of the equity settled share based payments accounting regime. For an introduction into the cash settled share-based payment regime, see Practice Note: Analysis of cash settled share based payments accounting regime. Option pricing theory—Black Scholes and Monte Carlo models Where the equity award is an option or some other equity instrument which is not an ordinary share, a theoretical value of the instrument will need to be calculated. Although Black Scholes option pricing theory mathematics is not prescribed by the share based payments (SBP) standards, it has become the defacto-accepted basis for valuing options for SBP accounting purposes. Basic Black Scholes is a complex formula, but it can be solved algebraically to calculate a theoretical value of an option based on the six Black Scholes assumptions. The theory is introduced in the Practice Note: Overview of the equity settled share based payments accounting regime, however, as a re-cap, the six Black Scholes assumptions are: • market value of the ordinary shares • exercise price of the option over ordinary shares • expected life of the option • expected dividend yield of the ordinary

The micro-entities regime for LLPs

The micro-entities regime for LLPs Rules and guidance The statutory rules governing the annual accounts of limited liability partnerships (LLPs) that qualify as micro-entities (a sub-group of small LLPs) are set out in: •

The micro-entities regime

The micro-entities regime The statutory rules governing the annual accounts and reports of micro-entities (a sub-group of small companies) are set out in: •

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How do I get information about a company?

How do I get information about a company? Searching for information about a company Public digital data beta service Users can search all public digital data filed at Companies House using its new beta service which can be accessed here. This recent extension of free search services reflects the government’s commitment to the provision of free data. The service provides users with free access to over 170 million company records and currently includes the following features: • company overviews and officers • document images • disqualified directors • follow companies • change registered office addresses, and • company name availability checker Companies House currently welcomes feedback on the beta service and continues to release new search features over the forthcoming months, including abridged accounts and other document filings. Company overviews and officers To search for a company overview and officers, a user should complete the following steps: • search for a company • select the company • click on the ‘Overview’ tab for a summary of the company’s information • click on the ‘Filing history’ tab for a list of the company’s filing information • to refine filing history results, filter by category • to view or download a document click on ‘view pdf’ • click on the ‘People’ tab for a list of officers of the company and people with significant control • click on ‘UK

How does the micro-entities regime compare with the small companies regime in relation to accounting and audit?

How does the micro-entities regime compare with the small companies regime in relation to accounting and audit? A company that qualifies for the small companies regime will be subject to less onerous accounting, reporting and audit obligations than a larger company or a quoted company. For information on qualifying as a small company see Practice Note: The small companies regime. The micro-entity regime is effectively a sub-set of the small companies regime. To qualify, the entity must satisfy lower size thresholds For information on how to qualify as a micro-entity see Practice Note: The micro-entities regime. See also Q&A: What are the maximum size thresholds for micro, small and medium-sized companies in relation to the accounts and reports regulations?. Accounting requirements compared Small companies In summary, the advantages of qualifying as a small company in terms of a reduced accounting and reporting burden include the following: • the company may prepare an abridged balance sheet and/or an abridged profit and loss account instead of full accounts, provided that all members consent • the abridged balance sheet may benefit from combined line items (eg it need not include a breakdown of debtors into trade debtors and other categories of debtors, nor a breakdown of creditors into bank loans and overdrafts, trade creditors and other categories of creditors) • line items are also combined for the abridged profit and

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.