Micro-entity definition

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UK and EU mandatory environmental reporting—which entities are caught?—checklist

UK and EU mandatory environmental reporting—which entities are caught?—checklist This Checklist summarises which companies and limited liability partnerships (LLPs) are subject to the principal UK and EU mandatory environmental reporting requirements. It provides a high level summary of, and includes links to the sources for, the relevant reporting requirements. For a more detailed summary of the relevant mandatory reporting requirements, see Practice Notes: CSR, ESG and human rights reporting and initiatives and EU mandatory corporate sustainability reporting. For a summary of the voluntary reporting requirements to which many companies and LLPs choose to adhere, see Practice Notes: TCFD recommendations and other ESG reporting frameworks, standards and benchmarks and Investor group guidance on environmental, social and governance (ESG) issues. UK requirements Requirement Scope Source Strategic report to contain description of principal risks and uncertainties. All companies (other than micro and small companies).Traded LLPs and banking LLPs. Companies Act 2006 (CA 2006), CA 2006, s 414C(2)(b)Applied to traded LLPs and banking LLPs by Limited Liability Partnerships (Accounts and Audit) (Application of Companies...

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EU Accounting Directive—summary of main provisions

EU Accounting Directive—summary of main provisions STOP PRESS: This Practice Note is currently under review in light of major changes to non-financial reporting rules proposed by the Commission pursuant to the omnibus simplification package of 26 February 2025 This Practice Note provides an overview of the main provisions of the EU Accounting Directive (2013/34/EU). 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 Accounting 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 Accounting Directive was subsequently amended by the Non-Financial Reporting Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 as...

Contents of the auditor's report—LLPs

Contents of the auditor's report—LLPs This Practice Note looks at the statutory requirements in Part 16 of the Companies Act 2006 (CA 2006) relating to the content of the auditor's report on the accounts and reports of an LLP as applied to limited liability partnerships (LLPs) by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, SI 2008/1911. In relation to the need for an auditor's report, see Practice Note: When must an LLP’s accounts be audited? Auditor's report An LLP's auditor must make a report on the annual accounts of the LLP if copies of those annual accounts are, in accordance with the applicable statutory provisions, to be sent to the members during the auditor’s term of office. For further information on an auditor's duties and rights, see Practice Note: An auditor’s duties and rights. Annual accounts The auditor's report on an LLP's annual accounts must include: • an introduction identifying the annual accounts covered by it and the financial ...

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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,...

What are the maximum size thresholds for micro, small and medium-sized companies in relation to the accounts and reports regulations?

What are the maximum size thresholds for micro, small and medium-sized companies in relation to the accounts and reports regulations? The Companies Act 2006 (CA 2006) sets out detailed provisions relating to the preparation of annual accounts and reports by a company. The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015, SI 2015/980 (2015 Regulations) made a wide range of amendments to the CA 2006, particularly in relation to the small companies regime. All companies must produce accounts, but the statutory requirements to be met in relation to those accounts vary according to the status of the company in question in the relevant financial year. For the purpose of these statutory requirements, a number of different categorisations are used, each of which overlap to some extent. A first step is to distinguish quoted from unquoted companies. Then to note that a particular unquoted company may qualify for, and opt to be subject to, one of either the micro-entities regime, the small companies regime, or...

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Share Incentives weekly highlights—10 April 2025

This week's edition of Share Incentives weekly highlights includes (1) publication of the Companies (Directors’ Remuneration and Audit) (Amendment) Regulations 2025, (2) LSE’s discussion paper on reforms to the AIM framework and rules, (3) new and updated guidance from HMRC on changes for non-domiciled individuals and (4) analysis from Deloitte and WTW on FTSE 100 remuneration reports for 2024 which have been published so far.

Corporate weekly highlights—12 December 2024

This week's edition of Corporate weekly highlights includes the High Court judgement in Re KRF Services (UK) Ltd and others, which clarifies the position of sole directors under the Model Articles, the FCA’s 46th Quarterly Consultation, which proposes updates to the FCA Handbook to align it to the new edition of the UK Corporate Governance Code, and the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024, which will reduce the reporting burden on companies. Also included is a recent case on constructive trusts in relation to the sale of shares, and an update on the CMA’s approval of the merger between Vodafone and Three.