Accounts and reports—fundamentals

The following Corporate practice note provides comprehensive and up to date legal information covering:

  • Accounts and reports—fundamentals
  • Contents
  • How does Brexit impact company accounts and reports?
  • How is COVID-19 impacting company accounts and reports?
  • What are ‘annual accounts’?
  • What is a financial reporting framework?
  • What is the UK Endorsement Board (UKEB)?
  • What is the ‘true and fair’ view concept?
  • What are accounting records?
  • What content goes into individual accounts?
  • More...

Accounts and reports—fundamentals

In accordance with Part 15 of the Companies Act 2006 (CA 2006) all companies must produce accounts, but the statutory requirements to be met in relation to those accounts vary according to the status and size 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 an extent. A company may be quoted or unquoted, and, if unquoted, may be a micro-entity, a small company or a medium-sized company.

If a company is subject to the micro-entities regime or the small companies regime, the statutory requirements in relation its accounts are significantly less onerous than those that would otherwise apply (ie, those that simply apply to a larger unquoted company). The exemptions permitted by the medium-sized companies regime are now very limited.

A company that is eligible for the micro, small or medium-sized company regime does not have to apply it – the requirements are optional. In practice, most small companies that are eligible to adopt the small companies regime do elect to do so.

Users of this note may also find the following content to be of interest:

  1. Audit—fundamentals

  2. Corporate governance—fundamentals

Contents

How does Brexit impact company accounts and reports?

How is COVID-19 impacting company accounts and reports?

What are ‘annual accounts’?

What is a financial reporting framework?

What is

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