UK companies Act requires the directors of both Public and Private Companies to file their statutory accounts with Companies House within the filing dateline. The filing dateline of each company is publicly available from the Companies House website – www.companieshouse.gov.uk. Failure to file accounts on time, the company will have to pay late filing penalty even if the accounts are filed just late by one day.
The statutory accounts prepared for submission to Companies House must comply with the Companies Act. The accounting requirements for small limited companies are less stringent than medium size and large companies. The accounts of a limited company which classified as small must include the following:
A director report
This report states the principal activities of the company, directors holding office during the year and a statement stating that the report has been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies.
It is important to note that more complex disclosure in the director report is required if the company is not eligible to prepared its accounts under Financial Reporting Standard for Smaller Entities (FRRSE).
An auditor report signed by the auditor
The company may submit accountants’ report if it is entitled to exemption from audit. The auditors state their opinion on the audited financial statements whether it give a true and fair view.
This account shows the trading results of the company for the financial year.
The balance sheet lists the assets and liabilities of the company showing its financial position at the end of the year.
In addition, a statement to be included above the director’s signature to the effect that the financial statements have been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies and the Financial Reporting Standard for Smaller Entities (effective January 2007).
Also, the statement of directors’ responsibilities as set out by the Companies Act to be included below the special provision statement mentioned above.
Notes to the accounts.
A clear description of the material accounting policies followed in the preparation of the company accounts such as whether it is prepared under UK GAAP or IFRS or FRSSE and depreciation policies adopted so that other users of the financial statements can understand the figures in the accounts are derived at.
It is suggested that you ask a professional accountant to prepare the accounts for you if you are not familiar with the UK company law and the financial reporting standards applicable to your company accounts.
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