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1 Regulatory framework for company financial accounting - Coggle Diagram
1 Regulatory framework for company financial accounting
1.1 Statutory accounts
Parties who must be provided with copies
All shareholders
The board of directors must approve the statutory accounts before they are sent to the shareholders. This means that a director must sign the balance sheet and the company secretary or a director must sign the directors’ report.
Statutory accounts must include
Balance sheet ⚖️
Income statement (P&L)
Notes about the accounts
Group accounts
A directors report signed by secretary or director
Not necessary to 'micro-entity' companies
Auditors report
Time allowed to deliver to Companies House is:
nine months from the accounting reference date for a private company
six months from the accounting reference date for a public company.
'accounting reference date' is the end of the accounting period
people who can go to the company’s general meetings
Companies House
HM Revenue and Customs (HMRC) as part of the Company Tax Return.
Regulatory framework for company financial accounting
Must comply with the
Companies Act 2006
New UK Generally Accepted Accounting Practice (New UK GAAP)
International Financial Reporting Standards (IFRS)
Companies listed on the 'London Stock Exchange'.
Requirement
Companies not listed on the 'London Stock Exchange'
Optional
Companies in the European Union or the European Economic Area (EAA)
Requirement
1.3 Abridged accounts and exemption from statutory audit
Abridged accounts eligibility
Micro-entity accounts
Small companies
Small company accounts
1.2 Company size classifications
Micro-entity
Turnover:
Max £632,000
Balance sheet total:
No more than £316,000
Average employees:
No more than 10 employees
Small company
Turnover:
No more than £10.2m
Balance sheet total:
No more than £5.1 million
Average employees:
No more than 50 employees
Medium sized company
Turnover:
No more than £36 million
Balance sheet total:
No more than £18 million
Average employees:
No more than 250 employees
Large company
Turnover:
More than £36 million
Balance sheet total:
More than £18 million
Average employees:
More than 250 employees