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The Accountants for Growth

Small Company Filing Options

Small Company Filing Options
Recent changes in company law have removed the option for small companies to file abbreviated accounts. Furthermore the accounts presentation and disclosure requirements have changed also and these have been embodied in FRS 102 Section 1A.
Small and medium size companies have got used to filing abbreviated accounts for a number of years however these have been abolished for accounting periods commencing on or after 1 January 2016.
 So what are the options if directors do not want to file full statutory accounts at Companies House? Well, certain exemptions are available under S. 444 of the Companies Act which allow small companies to file only their balance sheet and the notes to the accounts. We believe that filing of such ‘filleted’ accounts are likely to become more widely used as companies look for options as an alternative to filing abbreviated accounts.

Under FRS 102 a company has options of the type of accounts it prepares for its members; a small company can prepare abridged accounts for its members as an alternative to full statutory financial statements. These are a shortened version of the annual accounts.
In our opinion there will be little demand for abridged accounts because members of the company will be getting less information so they serve little purpose. All the members have to agree to the presentation of abridged accounts and a statement of consent has to be filed each year at Companies House.

In summary, we believe that most small companies will require us to prepare for them unabridged accounts which they will present to their members; they will then fillet these for filing purposes, removing the directors’ report and the profit and loss account and filing just the balance sheet and notes to the accounts plus an extra statement explaining what exemptions have been taken.
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