The Impact On UK Financial Statements Of New Legislation On Medium Sized Companies And Group Accounts

With effect on financial statements commencing the 1st January 2016 onwards, statutory instrument 2015/980 is changing the format of UK accounts. Let’s look at the main changes for medium companies and group accounts:

The new size limits for medium companies are as follows:

  • Turnover less than £36m
  • Gross balance sheet total less than £18m
  • Less than 250 employees

Changes for medium sized companies:

  1. Disclosures with regard to subsidiaries and other significant investments are expanded to include the address of the registered office of all such entities, whether inside or outside the UK.
  2. The maximum useful life of goodwill and intangible assets is set at ten years.

The new size limits for groups requirement consolidation are as follows:

  • Turnover less than £43.1m
  • Gross balance sheet total less than £21.6m
  • Less than 250 employees

Order of the notes

The 2015 Regulations bring in requirements about the order notes must be presented in the accounts. Notes must now be presented in the corresponding order of presentation in the profit and loss accounts and balance sheet.

What questions do you have?

We are happy to help. Please post your comment below or call Nigel Mayberry, Director of Audit Services at Cooney Carey, on 01 677 9000.

To keep in touch, connect with our friendly team on LinkedIn.

If this article helped you, please share it with other leaders.

Posted on July 3, 2017 by Cooney Carey

Length of Financial Accounting Periods

Section 288 of the Companies Act 2014 requires that the financial statements attached to a company’s first full annual return must cover the period from incorporation and must not be for a period longer than 18 months.

Each subsequent financial year must begin on the date immediately after the last financial year end date and must be for a period of no more than 7 days shorter or longer than 12 months.

If the company requires to change its accounting date, it can do so by filing a form B83 with the Companies Registration Office. This can only be done once every 5 years (unless exempted by the Companies Act 2014 section 288 (10)). Any change in accounting period cannot result in the accounting period exceeding 18 months.

What questions do you have?

We are happy to help. Please post your comment below or contact Michael O’Halloran on 01 677 9000 or mohalloran@cooneycarey.ie.

Posted on June 27, 2017 by Cooney Carey

The Impact Of New Legislation On UK Financial Statements

With effect on financial statements commencing the 1st January 2016 onwards, statutory instrument 2015/980 is changing the format of UK accounts.

Let’s look at the main changes for small companies:

  • Small company accounting sizes have raised substantially. This also applies to audit exemption levels.
  • Small Company accounts disclosure requirements are simplified significantly.
  • Abbreviated accounts are abolished although small companies will be able to prepare ‘abridged’ accounts for shareholders and for filing at Companies House. There is no change to the exemptions previously existing for filing accounts in Companies House.

The new size limits for small companies are as follows:

  • Turnover less than £10.2m
  • Gross balance sheet total less than £5.1m
  • Less than 50 employees

Details of some of the disclosure requirements removed Read more

Posted on June 20, 2017 by Cooney Carey

← Older Posts