A company's tax assessments are made by reference to its accounting periods, which are usually the successive periods for which the company makes up its accounts.

A document or record may be made or required for any accounting purpose, even though this purpose is secondary or incidental.

A company must comply with statutory provisions set out in the Companies Act 2006 (CA 2006) which concern keeping accounting records. In addition, there may be other rules relating to accounting records that apply to a listed company, an AIM company or a company with securities that are listed on the AQSE Main Market, AQSE Trading or AQSE Growth Market (formerly the NEX Exchange Main Board, NEX Exchange Secondary Market and NEX Exchange Growth Market), but these are outside the scope of this Practice Note. Some or all of the statutory provisions relating to accounting records may also apply to other companies and entities, but this issue is outside the scope of this Practice Note. The duty to keep accounting records All companies must keep adequate accounting records. Their purpose is to ensure that businesses record transactions to enable them to show the company's financial position and to prepare accounts which comply with CA 2006 and, where relevant, with International Accounting Standards (IAS). Accounting records is a deliberately broad term that is not specifically defined as the records of a

When a company is incorporated, it will usually have an accounting reference date that is the last day of the month in which the anniversary of its incorporation falls. Directors can change the accounting reference date by filing an appropriate form with the Registrar of Companies. It marks the end of the annual accounting period and is also known as the balance sheet date.

A company’s accounting reference period (ARP) is determined by reference to its accounting reference date: it ends on that date. The ARD is normally the last day of the month in which the anniversary of the company’s incorporation falls (CA 2006, s 391).

Usually the period of twelve months over which a company draws up its accounts. If the company's accounting period does not coincide with its period of account or if the accounting period spans more than one financial year, the profits must be apportioned.

Initial points The rules relating to audit and accounting are subject to modification over time. Readers may also refer to Practice Note: Charity reporting and accounting and the resources referred to at the top of that note for further information on the relevant rules. Please note that much of the information reported in a charity’s accounts and filed with the Charity Commission is accessible on the Commission’s public register of charities though confidential information such as bank account details is not generally made available to the public. Links to example forms can be found on the Charity Commission website as well as an annual return template and guidance for its completion. See section 169 of the Charities Act 2011 (CA 2011) in relation to annual returns. Reporting A detailed note on charity reporting can be found in Practice Note: Charity reporting and accounting. In summary: • The trustees of a registered charity must prepare Annual Report and Accounts and make copies available to the public on request. The requirement to prepare accounts and an annual report

The preparation of separate accounts for different businesses and parts of businesses run by the same company or group of companies, so that the costs and revenues associated with each business and part of a business (and transfers between them) can be separately identified and properly allocated.

A limited company may buy back shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. This is known as a share buyback or a purchase of own shares. In addition to the provisions of CA 2006, there are other rules and guidelines that are relevant to a listed company or an AIM company. In particular, a listed company must have regard to the UK Listing Rules (UKLRs) and the Disclosure Guidance and Transparency Rules (DTRs). An AIM company must have regard to the AIM Rules for Companies (AIM Rules), but these do not specifically refer to share buybacks, so AIM Regulation has confirmed that compliance by an AIM company with the UKLRs in relation to share buybacks would represent best practice in most circumstances. An AIM company is also subject to DTR 5. In addition, both types of company may follow institutional investor guidance. The restrictions in CA 2006 relating to share buybacks do not apply to unlimited companies. For further information

This Practice Note outlines the provisions of the Companies Act 2006 (CA 2006) relating to the annual accounts of a company. 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) implemented the requirements of the EU Accounting Directive (Directive 2013/34/EU) into UK law. The 2015 Regulations made a wide range of amendments to CA 2006, particularly in relation to the small companies regime. The 2015 Regulations, as amended by the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 apply to financial periods beginning on or after 1 January 2016. This Practice Note, along with Practice Note: Accounts and reports—individual and group accounts, outlines the requirements set out in those statutory provisions. There are also additional rules relating to accounts and reports that apply to a listed company, an AIM company or a company with securities traded on one of AQSE’s markets, which are

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

This glossary contains a summary and definition of some of the most common terms and phrases used in the context of a company’s accounting and reporting. A Word or phrase Definition Abbreviated accounts If the accounts of a small company (that is not a micro-entity) relate to financial years beginning before 1 January 2016 (see the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (SI 2015/980)), 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 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. However, from 1 April 2028, companies, including micro-entities, will no longer be able to file abridged accounts.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