All companies registered with the Registrar of Companies must file full version of the statutory accounts. However, small or medium sized companies may choose to file abbreviated accounts. The Companies Act provides clear definition of small and medium size company.
Generally, small and medium size company must meet at two of out the three eligibility criteria. To qualify as a small company, the company’s turnover must not be more than £6.5 million, its gross assets must not in excess of £3.26 million and its number of staff must be less than 50. Whereas to qualify as a medium sized company, the company sales must be less than £25.9 million; its assets must be less than £12.9 million and with number of employees less than 250.
The company will not be eligible to submit abbreviated accounts to Companies House if it is a Plc or a banking company or insurance company or a company regulated under the Financial Services Act 1986 or a member of an ineligible group.
The benefit of filing abbreviated accounts is that of it put less information for public record.
Abbreviated accounts to be sent to Companies House for a small company must contain the following:
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An abbreviated balance sheet
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Notes to the accounts on accounting policies, share capital, particulars of creditors payable more than five years and basis of any foreign currency translation if applicable
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A special auditors’ report unless the company qualifies for audit exemption.
For medium sized company, the accounts must comprise of:
The rules of disclosure are complex and the above only gives a brief outline of the requirements. Seek chartered accountants advice if in doubt as to the information to be disclosed in the abbreviated accounts. Note that all the companies filing abbreviated accounts must have a special auditor’s report confirming that the exemptions have been satisfied and the directors must include a statement on the balance sheet page stating that the company is entitled to exemptions.
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