Source: http://www.legislation.gov.uk/ukpga/2006/46/part/15/enacted
Timestamp: 2018-02-19 06:26:01
Document Index: 687357446

Matched Legal Cases: ['art 15', 'art 2', 'art 3', 'art 2', 'art 3', 'art 35', 'art 35', 'art 1', 'art 10', 'art 4', 'art 4', 'art\n474', 'art 4']

Part 15Accounts and reports
380Scheme of this Part
(3)The main distinctions for this purpose are—
(a)between companies subject to the small companies regime (see section 381) and companies that are not subject to that regime; and
(b)between quoted companies (see section 385) and companies that are not quoted.
(4)In this Part, where provisions do not apply to all kinds of company—
(a)provisions applying to companies subject to the small companies regime appear before the provisions applying to other companies,
(b)provisions applying to private companies appear before the provisions applying to public companies, and
(c)provisions applying to quoted companies appear after the provisions applying to other companies.
381Companies subject to the small companies regime
The small companies regime for accounts and reports applies to a company for a financial year in relation to which the company—
(a)qualifies as small (see sections 382 and 383), and
(b)is not excluded from the regime (see section 384).
382Companies qualifying as small: general
(1)A company qualifies as small in relation to its first financial year if the qualifying conditions are met in that year.
(2)A company qualifies as small in relation to a subsequent financial year—
(b)if the qualifying conditions are met in that year and the company qualified as small in relation to the preceding financial year;
(c)if the qualifying conditions were met in the preceding financial year and the company qualified as small in relation to that year.
(7)This section is subject to section 383 (companies qualifying as small: parent companies).
383Companies qualifying as small: parent companies
(1)A parent company qualifies as a small company in relation to a financial year only if the group headed by it qualifies as a small group.
(2)A group qualifies as small in relation to the parent company’s first financial year if the qualifying conditions are met in that year.
(3)A group qualifies as small in relation to a subsequent financial year of the parent company—
(b)if the qualifying conditions are met in that year and the group qualified as small in relation to the preceding financial year;
(c)if the qualifying conditions were met in the preceding financial year and the group qualified as small in relation to that year.
(4)The qualifying conditions are met by a group in a year in which it satisfies two or more of the following requirements—
1. Aggregate turnover Not more than £5.6 million net (or £6.72 million gross)
2. Aggregate balance sheet total Not more than £2.8 million net (or £3.36 million gross)
(5)The aggregate figures are ascertained by aggregating the relevant figures determined in accordance with section 382 for each member of the group.
(6)In relation to the aggregate figures for turnover and balance sheet total—
“net” means after any set-offs and other adjustments made to eliminate group transactions—
in the case of Companies Act accounts, in accordance with regulations under section 404,
in the case of IAS accounts, in accordance with international accounting standards; and
“gross” means without those set-offs and other adjustments.
A company may satisfy any relevant requirement on the basis of either the net or the gross figure.
(7)The figures for each subsidiary undertaking shall be those included in its individual accounts for the relevant financial year, that is—
If those figures cannot be obtained without disproportionate expense or undue delay, the latest available figures shall be taken.
385Quoted and unquoted companies
(1)For the purposes of this Part a company is a quoted company in relation to a financial year if it is a quoted company immediately before the end of the accounting reference period by reference to which that financial year was determined.
Chapter 2Accounting records
386Duty to keep accounting records
387Duty to keep accounting records: offence
(1)If a company fails to comply with any provision of section 386 (duty to keep accounting records), an offence is committed by every officer of the company who is in default.
(2)It is a defence for a person charged with such an offence to show that he acted honestly and that in the circumstances in which the company’s business was carried on the default was excusable.
388Where and for how long records to be kept
(5)Subsection (4) is subject to any provision contained in rules made under section 411 of the Insolvency Act 1986 (c. 45) (company insolvency rules) or Article 359 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).
389Where and for how long records to be kept: offences
(1)If a company fails to comply with any provision of subsections (1) to (3) of section 388 (requirements as to keeping of accounting records), an offence is committed by every officer of the company who is in default.
(3)An officer of a company commits an offence if he—
(a)fails to take all reasonable steps for securing compliance by the company with subsection (4) of that section (period for which records to be preserved), or
(b)intentionally causes any default by the company under that subsection.
Chapter 3A company’s financial year
391Accounting reference periods and accounting reference date
(1)A company’s accounting reference periods are determined according to its accounting reference date in each calendar year.
(2)The accounting reference date of a company incorporated in Great Britain before 1st April 1996 is—
(a)the date specified by notice to the registrar in accordance with section 224(2) of the Companies Act 1985 (c. 6) (notice specifying accounting reference date given within nine months of incorporation), or
(b)failing such notice—
(i)in the case of a company incorporated before 1st April 1990, 31st March, and
(ii)in the case of a company incorporated on or after 1st April 1990, the last day of the month in which the anniversary of its incorporation falls.
(3)The accounting reference date of a company incorporated in Northern Ireland before 22nd August 1997 is—
(a)the date specified by notice to the registrar in accordance with article 232(2) of the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)) (notice specifying accounting reference date given within nine months of incorporation), or
(i)in the case of a company incorporated before the coming into operation of Article 5 of the Companies (Northern Ireland) Order 1990 (S.I. 1990/593 (N.I. 5)), 31st March, and
(ii)in the case of a company incorporated after the coming into operation of that Article, the last day of the month in which the anniversary of its incorporation falls.
(4)The accounting reference date of a company incorporated—
(a)in Great Britain on or after 1st April 1996 and before the commencement of this Act,
(b)in Northern Ireland on or after 22nd August 1997 and before the commencement of this Act, or
(c)after the commencement of this Act,
is the last day of the month in which the anniversary of its incorporation falls.
(5)A company’s first accounting reference period is the period of more than six months, but not more than 18 months, beginning with the date of its incorporation and ending with its accounting reference date.
(6)Its subsequent accounting reference periods are successive periods of twelve months beginning immediately after the end of the previous accounting reference period and ending with its accounting reference date.
(7)This section has effect subject to the provisions of section 392 (alteration of accounting reference date).
392Alteration of accounting reference date
(1)A company may by notice given to the registrar specify a new accounting reference date having effect in relation to—
(2)The notice must state whether the current or previous accounting reference period—
(3)A notice extending a company’s current or previous accounting reference period is not effective if given less than five years after the end of an earlier accounting reference period of the company that was extended under this section.
(a)to a notice given by a company that is a subsidiary undertaking or parent undertaking of another EEA undertaking if the new accounting reference date coincides with that of the other EEA undertaking or, where that undertaking is not a company, with the last day of its financial year, or
(b)where the company is in administration under Part 2 of the Insolvency Act 1986 (c. 45) or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), or
(4)A notice under this section may not be given in respect of a previous accounting reference period if the period for filing accounts and reports for the financial year determined by reference to that accounting reference period has already expired.
(5)An accounting reference period may not be extended so as to exceed 18 months and a notice under this section is ineffective if the current or previous accounting reference period as extended in accordance with the notice would exceed that limit.
This does not apply where the company is in administration under Part 2 of the Insolvency Act 1986 (c. 45) or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).
(6)In this section “EEA undertaking” means an undertaking established under the law of any part of the United Kingdom or the law of any other EEA State.
Chapter 4Annual accounts
393Accounts to give true and fair view
(2)The auditor of a company in carrying out his functions under this Act in relation to the company’s annual accounts must have regard to the directors' duty under subsection (1).
394Duty to prepare individual accounts
The directors of every company must prepare accounts for the company for each of its financial years.
396Companies Act individual accounts
(4)If compliance with the regulations, and any other provision made by or under this Act as to the matters to be included in a company’s individual accounts or in notes to those accounts, would not be sufficient to give a true and fair view, the necessary additional information must be given in the accounts or in a note to them.
397IAS individual accounts
Where the directors of a company prepare IAS individual accounts, they must state in the notes to the accounts that the accounts have been prepared in accordance with international accounting standards.
399Duty to prepare group accounts
(1)This section applies to companies that are not subject to the small companies regime.
(2)If at the end of a financial year the company is a parent company the directors, as well as preparing individual accounts for the year, must prepare group accounts for the year unless the company is exempt from that requirement.
(3)There are exemptions under–
(4)A company to which this section applies but which is exempt from the requirement to prepare group accounts, may do so.
400Exemption for company included in EEA group accounts of larger group
(1)A company is exempt from the requirement to prepare group accounts if it is itself a subsidiary undertaking and its immediate parent undertaking is established under the law of an EEA State, in the following cases—
(b)where that parent undertaking holds more than 50% of the allotted shares in the company and notice requesting the preparation of group accounts has not been served on the company by shareholders holding in aggregate—
(i)more than half of the remaining allotted shares in the company, or
(ii)5% of the total allotted shares in the company.
(a)the company must be included in consolidated accounts for a larger group drawn up to the same date, or to an earlier date in the same financial year, by a parent undertaking established under the law of an EEA State;
(b)those accounts must be drawn up and audited, and that parent undertaking’s annual report must be drawn up, according to that law—
(i)in accordance with the provisions of the Seventh Directive (83/349/EEC) (as modified, where relevant, by the provisions of the Bank Accounts Directive (86/635/EEC) or the Insurance Accounts Directive (91/674/EEC)), or
(ii)in accordance with international accounting standards;
(c)the company must disclose in its individual accounts that it is exempt from the obligation to prepare and deliver group accounts;
(d)the company must state in its individual accounts the name of the parent undertaking that draws up the group accounts referred to above and—
(i)if it is incorporated outside the United Kingdom, the country in which it is incorporated, or
(e)the company must deliver to the registrar, within the period for filing its accounts and reports for the financial year in question, copies of—
(i)those group accounts, and
(ii)the parent undertaking’s annual report,
together with the auditor’s report on them;
(f)any requirement of Part 35 of this Act as to the delivery to the registrar of a certified translation into English must be met in relation to any document comprised in the accounts and reports delivered in accordance with paragraph (e).
(3)For the purposes of subsection (1)(b) shares held by a wholly-owned subsidiary of the parent undertaking, or held on behalf of the parent undertaking or a wholly-owned subsidiary, shall be attributed to the parent undertaking.
(4)The exemption does not apply to a company any of whose securities are admitted to trading on a regulated market in an EEA State.
(5)Shares held by directors of a company for the purpose of complying with any share qualification requirement shall be disregarded in determining for the purposes of this section whether the company is a wholly-owned subsidiary.
(6)In subsection (4) “securities” includes—
(d)certificates or other instruments that confer—
401Exemption for company included in non-EEA group accounts of larger group
(1)A company is exempt from the requirement to prepare group accounts if it is itself a subsidiary undertaking and its parent undertaking is not established under the law of an EEA State, in the following cases—
(a)the company and all of its subsidiary undertakings must be included in consolidated accounts for a larger group drawn up to the same date, or to an earlier date in the same financial year, by a parent undertaking;
(b)those accounts and, where appropriate, the group’s annual report, must be drawn up—
(ii)in a manner equivalent to consolidated accounts and consolidated annual reports so drawn up;
(c)the group accounts must be audited by one or more persons authorised to audit accounts under the law under which the parent undertaking which draws them up is established;
(d)the company must disclose in its individual accounts that it is exempt from the obligation to prepare and deliver group accounts;
(e)the company must state in its individual accounts the name of the parent undertaking which draws up the group accounts referred to above and—
(f)the company must deliver to the registrar, within the period for filing its accounts and reports for the financial year in question, copies of—
(i)the group accounts, and
(ii)where appropriate, the consolidated annual report,
(g)any requirement of Part 35 of this Act as to the delivery to the registrar of a certified translation into English must be met in relation to any document comprised in the accounts and reports delivered in accordance with paragraph (f).
(3)For the purposes of subsection (1)(b), shares held by a wholly-owned subsidiary of the parent undertaking, or held on behalf of the parent undertaking or a wholly-owned subsidiary, are attributed to the parent undertaking.
409Information about related undertakings
(1)The Secretary of State may make provision by regulations requiring information about related undertakings to be given in notes to a company’s annual accounts.
(iii)any of the company’s subsidiary undertakings, or
(5)Where advantage is taken of any such exemption, that fact must be stated in a note to the company’s annual accounts.
410Information about related undertakings: alternative compliance
(1)This section applies where the directors of a company are of the opinion that the number of undertakings in respect of which the company is required to disclose information under any provision of regulations under section 409 (related undertakings) is such that compliance with that provision would result in information of excessive length being given in notes to the company’s annual accounts.
(2)The information need only be given in respect of—
(b)where the company prepares group accounts, undertakings excluded from consolidation under section 405(3) (undertakings excluded on grounds other than materiality).
(3)If advantage is taken of subsection (2)—
(a)there must be included in the notes to the company’s annual accounts a statement that the information is given only with respect to such undertakings as are mentioned in that subsection, and
(b)the full information (both that which is disclosed in the notes to the accounts and that which is not) must be annexed to the company’s next annual return.
(4)If a company fails to comply with subsection (3)(b), an offence is committed by—
411Information about employee numbers and costs
(1)In the case of a company not subject to the small companies regime, the following information with respect to the employees of the company must be given in notes to the company’s annual accounts—
(2)The categories by reference to which the number required to be disclosed by subsection (1)(b) is to be determined must be such as the directors may select having regard to the manner in which the company’s activities are organised.
(3)The average number required by subsection (1)(a) or (b) is determined by dividing the relevant annual number by the number of months in the financial year.
(4)The relevant annual number is determined by ascertaining for each month in the financial year—
(a)for the purposes of subsection (1)(a), the number of persons employed under contracts of service by the company in that month (whether throughout the month or not);
(5)In respect of all persons employed by the company during the financial year who are taken into account in determining the relevant annual number for the purposes of subsection (1)(a) there must also be stated the aggregate amounts respectively of—
“pension costs” includes any costs incurred by the company in respect of—
any pension scheme established for the purpose of providing pensions for persons currently or formerly employed by the company,
any sums set aside for the future payment of pensions directly by the company to current or former employees, and
“social security costs” means any contributions by the company to any state social security or pension scheme, fund or arrangement.
(7)Where the company prepares group accounts, this section applies as if the undertakings included in the consolidation were a single company.
412Information about directors' benefits: remuneration
(1)The Secretary of State may make provision by regulations requiring information to be given in notes to a company’s annual accounts about directors' remuneration.
(2)The matters about which information may be required include—
(a)gains made by directors on the exercise of share options;
(b)benefits received or receivable by directors under long-term incentive schemes;
(c)payments for loss of office (as defined in section 215);
(d)benefits receivable, and contributions for the purpose of providing benefits, in respect of past services of a person as director or in any other capacity while director;
(e)consideration paid to or receivable by third parties for making available the services of a person as director or in any other capacity while director.
(3)Without prejudice to the generality of subsection (1), regulations under this section may make any such provision as was made immediately before the commencement of this Part by Part 1 of Schedule 6 to the Companies Act 1985 (c. 6).
(4)For the purposes of this section, and regulations made under it, amounts paid to or receivable by—
(a)a person connected with a director, or
(b)a body corporate controlled by a director,
are treated as paid to or receivable by the director.
The expressions “connected with” and “controlled by” in this subsection have the same meaning as in Part 10 (company directors).
(5)It is the duty of—
(a)any director of a company, and
(b)any person who is or has at any time in the preceding five years been a director of the company,
to give notice to the company of such matters relating to himself as may be necessary for the purposes of regulations under this section.
(6)A person who makes default in complying with subsection (5) commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
413Information about directors' benefits: advances, credit and guarantees
(1)In the case of a company that does not prepare group accounts, details of—
(a)advances and credits granted by the company to its directors, and
(b)guarantees of any kind entered into by the company on behalf of its directors,
(2)In the case of a parent company that prepares group accounts, details of—
(a)advances and credits granted to the directors of the parent company, by that company or by any of its subsidiary undertakings, and
(b)guarantees of any kind entered into on behalf of the directors of the parent company, by that company or by any of its subsidiary undertakings,
(3)The details required of an advance or credit are—
(b)an indication of the interest rate,
(c)its main conditions, and
(d)any amounts repaid.
(4)The details required of a guarantee are—
(a)its main terms,
(b)the amount of the maximum liability that may be incurred by the company (or its subsidiary), and
(c)any amount paid and any liability incurred by the company (or its subsidiary) for the purpose of fulfilling the guarantee (including any loss incurred by reason of enforcement of the guarantee).
(5)There must also be stated in the notes to the accounts the totals—
(a)of amounts stated under subsection (3)(a),
(b)of amounts stated under subsection (3)(d),
(c)of amounts stated under subsection (4)(b), and
(d)of amounts stated under subsection (4)(c).
(6)References in this section to the directors of a company are to the persons who were a director at any time in the financial year to which the accounts relate.
(7)The requirements of this section apply in relation to every advance, credit or guarantee subsisting at any time in the financial year to which the accounts relate—
(a)whenever it was entered into,
(b)whether or not the person concerned was a director of the company in question at the time it was entered into, and
(c)in the case of an advance, credit or guarantee involving a subsidiary undertaking of that company, whether or not that undertaking was such a subsidiary undertaking at the time it was entered into.
(8)Banking companies and the holding companies of credit institutions need only state the details required by subsections (3)(a) and (4)(b).
414Approval and signing of accounts
(1)A company’s annual accounts must be approved by the board of directors and signed on behalf of the board by a director of the company.
(2)The signature must be on the company’s balance sheet.
(3)If the accounts are prepared in accordance with the provisions applicable to companies subject to the small companies regime, the balance sheet must contain a statement to that effect in a prominent position above the signature.
Chapter 5Directors' report
Chapter 6Quoted companies: directors' remuneration report
420Duty to prepare directors' remuneration report
(1)The directors of a quoted company must prepare a directors' remuneration report for each financial year of the company.
(2)In the case of failure to comply with the requirement to prepare a directors' remuneration report, every person who—
(b)failed to take all reasonable steps for securing compliance with that requirement,
421Contents of directors' remuneration report
(1)The Secretary of State may make provision by regulations as to—
(a)the information that must be contained in a directors' remuneration report,
(2)Without prejudice to the generality of this power, the regulations may make any such provision as was made, immediately before the commencement of this Part, by Schedule 7A to the Companies Act 1985 (c. 6).
(4)A person who makes default in complying with subsection (3) commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
422Approval and signing of directors' remuneration report
(1)The directors' remuneration report must be approved by the board of directors and signed on behalf of the board by a director or the secretary of the company.
(2)If a directors' remuneration report is approved that does not comply with the requirements of this Act, every director of the company who—
Chapter 7Publication of accounts and reports
423Duty to circulate copies of annual accounts and reports
(6)This section has effect subject to section 426 (option to provide summary financial statement).
424Time allowed for sending out copies of accounts and reports
(1)The time allowed for sending out copies of the company’s annual accounts and reports is as follows.
(5)Whether the time allowed is that for a private company or a public company is determined by reference to the company’s status immediately before the end of the accounting reference period by reference to which the financial year for the accounts in question was determined.
426Option to provide summary financial statement
(1)A company may—
provide a summary financial statement instead of copies of the accounts and reports required to be sent out in accordance with section 423.
(4)A summary financial statement must comply with the requirements of—
section 427 (form and contents of summary financial statement: unquoted companies), or
section 428 (form and contents of summary financial statement: quoted companies).
427Form and contents of summary financial statement: unquoted companies
(1)A summary financial statement by a company that is not a quoted company must—
(a)be derived from the company’s annual accounts, and
(b)be prepared in accordance with this section and regulations made under it.
(2)The summary financial statement must be in such form, and contain such information, as the Secretary of State may specify by regulations.
The regulations may require the statement to include information derived from the directors' report.
(3)Nothing in this section or regulations made under it prevents a company from including in a summary financial statement additional information derived from the company’s annual accounts or the directors' report.
(4)The summary financial statement must—
(a)state that it is only a summary of information derived from the company’s annual accounts;
(b)state whether it contains additional information derived from the directors' report and, if so, that it does not contain the full text of that report;
(c)state how a person entitled to them can obtain a full copy of the company’s annual accounts and the directors' report;
(d)contain a statement by the company’s auditor of his opinion as to whether the summary financial statement—
(i)is consistent with the company’s annual accounts and, where information derived from the directors' report is included in the statement, with that report, and
(ii)complies with the requirements of this section and regulations made under it;
(e)state whether the auditor’s report on the annual accounts was unqualified or qualified and, if it was qualified, set out the report in full together with any further material needed to understand the qualification;
(f)state whether, in that report, the auditor’s statement under section 496 (whether directors' report consistent with accounts) was qualified or unqualified and, if it was qualified, set out the qualified statement in full together with any further material needed to understand the qualification;
(g)state whether that auditor’s report contained a statement under—
(i)section 498(2)(a) or (b) (accounting records or returns inadequate or accounts not agreeing with records and returns), or
(5)Regulations under this section may provide that any specified material may, instead of being included in the summary financial statement, be sent separately at the same time as the statement.
428Form and contents of summary financial statement: quoted companies
(1)A summary financial statement by a quoted company must—
(a)be derived from the company’s annual accounts and the directors' remuneration report, and
(3)Nothing in this section or regulations made under it prevents a company from including in a summary financial statement additional information derived from the company’s annual accounts, the directors' remuneration report or the directors' report.
(a)state that it is only a summary of information derived from the company’s annual accounts and the directors' remuneration report;
(c)state how a person entitled to them can obtain a full copy of the company’s annual accounts, the directors' remuneration report or the directors' report;
(i)is consistent with the company’s annual accounts and the directors' remuneration report and, where information derived from the directors' report is included in the statement, with that report, and
(e)state whether the auditor’s report on the annual accounts and the auditable part of the directors' remuneration report was unqualified or qualified and, if it was qualified, set out the report in full together with any further material needed to understand the qualification;
(f)state whether that auditor’s report contained a statement under—
(i)section 498(2) (accounting records or returns inadequate or accounts or directors' remuneration report not agreeing with records and returns), or
and if so, set out the statement in full;
(g)state whether, in that report, the auditor’s statement under section 496 (whether directors' report consistent with accounts) was qualified or unqualified and, if it was qualified, set out the qualified statement in full together with any further material needed to understand the qualification.
429Summary financial statements: offences
(1)If default is made in complying with any provision of section 426, 427 or 428, or of regulations under any of those sections, an offence is committed by—
433Name of signatory to be stated in published copies of accounts and reports
(a)the company’s balance sheet, and
(a)the company’s balance sheet,
(4)If a copy is published without the required statement of the signatory’s name, an offence is committed by—
435Requirements in connection with publication of non-statutory accounts
(c)whether an auditor’s report has been made on the company’s statutory accounts for any such financial year, and if so whether the report—
(2)The company must not publish with non-statutory accounts the auditor’s report on the company’s statutory accounts.
(7)This section does not apply in relation to the provision by a company of a summary financial statement (see section 426).
436Meaning of “publication” in relation to accounts and reports
Chapter 8Public companies: laying of accounts and reports before general meeting
438Public companies: offence of failure to lay accounts and reports
(1)If the requirements of section 437 (public companies: laying of accounts and reports before general meeting) are not complied with before the end of the period allowed, every person who immediately before the end of that period was a director of the company commits an offence.
Chapter 9Quoted companies: members' approval of directors' remuneration report
439Quoted companies: members' approval of directors' remuneration report
(1)A quoted company must, prior to the accounts meeting, give to the members of the company entitled to be sent notice of the meeting notice of the intention to move at the meeting, as an ordinary resolution, a resolution approving the directors' remuneration report for the financial year.
“the accounts meeting” means the general meeting of the company before which the company’s annual accounts for the financial year are to be laid; and
440Quoted companies: offences in connection with procedure for approval
(1)In the event of default in complying with section 439(1) (notice to be given of resolution for approval of directors' remuneration report), an offence is committed by every officer of the company who is in default.
(2)If the resolution is not put to the vote of the accounts meeting, an offence is committed by each existing director.
Chapter 10Filing of accounts and reports
441Duty to file accounts and reports with the registrar
(1)The directors of a company must deliver to the registrar for each financial year the accounts and reports required by—
section 446 (filing obligations of unquoted companies), or
section 447 (filing obligations of quoted companies).
(2)This is subject to section 448 (unlimited companies exempt from filing obligations).
442Period allowed for filing accounts
(1)This section specifies the period allowed for the directors of a company to comply with their obligation under section 441 to deliver accounts and reports for a financial year to the registrar.
This is referred to in the Companies Acts as the “period for filing” those accounts and reports.
(a)for a private company, nine months after the end of the relevant accounting reference period, and
(b)for a public company, six months after the end of that period.
(3)If the relevant accounting reference period is the company’s first and is a period of more than twelve months, the period is—
(a)nine months or six months, as the case may be, from the first anniversary of the incorporation of the company, or
(b)three months after the end of the accounting reference period,
(4)If the relevant accounting reference period is treated as shortened by virtue of a notice given by the company under section 392 (alteration of accounting reference date), the period is—
(5)If for any special reason the Secretary of State thinks fit he may, on an application made before the expiry of the period otherwise allowed, by notice in writing to a company extend that period by such further period as may be specified in the notice.
(6)Whether the period allowed is that for a private company or a public company is determined by reference to the company’s status immediately before the end of the relevant accounting reference period.
(7)In this section “the relevant accounting reference period” means the accounting reference period by reference to which the financial year for the accounts in question was determined.
443Calculation of period allowed
(1)This section applies for the purposes of calculating the period for filing a company’s accounts and reports which is expressed as a specified number of months from a specified date or after the end of a specified previous period.
(2)Subject to the following provisions, the period ends with the date in the appropriate month corresponding to the specified date or the last day of the specified previous period.
(3)If the specified date, or the last day of the specified previous period, is the last day of a month, the period ends with the last day of the appropriate month (whether or not that is the corresponding date).
(a)the specified date, or the last day of the specified previous period, is not the last day of a month but is the 29th or 30th, and
(b)the appropriate month is February,
the period ends with the last day of February.
(5)“The appropriate month” means the month that is the specified number of months after the month in which the specified date, or the end of the specified previous period, falls.
444Filing obligations of companies subject to small companies regime
(1)The directors of a company subject to the small companies regime—
(a)must deliver to the registrar for each financial year a copy of a balance sheet drawn up as at the last day of that year, and
(b)may also deliver to the registrar—
(i)a copy of the company’s profit and loss account for that year, and
(ii)a copy of the directors' report for that year.
(2)The directors must also deliver to the registrar a copy of the auditor’s report on those accounts (and on the directors' report).
This does not apply if the company is exempt from audit and the directors have taken advantage of that exemption.
(3)The copies of accounts and reports delivered to the registrar must be copies of the company’s annual accounts and reports, except that where the company prepares Companies Act accounts—
(4)If abbreviated accounts are delivered to the registrar the obligation to deliver a copy of the auditor’s report on the accounts is to deliver a copy of the special auditor’s report required by section 449.
(5)Where the directors of a company subject to the small companies regime deliver to the registrar IAS accounts, or Companies Act accounts that are not abbreviated accounts, and in accordance with this section—
(a)do not deliver to the registrar a copy of the company’s profit and loss account, or
(b)do not deliver to the registrar a copy of the directors' report,
the copy of the balance sheet delivered to the registrar must contain in a prominent position a statement that the company’s annual accounts and reports have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
(6)The copies of the balance sheet and any directors' report delivered to the registrar under this section must state the name of the person who signed it on behalf of the board.
(7)The copy of the auditor’s report delivered to the registrar under this section must—
445Filing obligations of medium-sized companies
(1)The directors of a company that qualifies as a medium-sized company in relation to a financial year (see sections 465 to 467) must deliver to the registrar a copy of—
(a)the company’s annual accounts, and
(2)They must also deliver to the registrar a copy of the auditor’s report on those accounts (and on the directors' report).
(3)Where the company prepares Companies Act accounts, the directors may deliver to the registrar a copy of the company’s annual accounts for the financial year—
(a)that includes a profit and loss account in which items are combined in accordance with regulations made by the Secretary of State, and
(b)that does not contain items whose omission is authorised by the regulations.
(5)The copies of the balance sheet and directors' report delivered to the registrar under this section must state the name of the person who signed it on behalf of the board.
(6)The copy of the auditor’s report delivered to the registrar under this section must—
(7)This section does not apply to companies within section 444 (filing obligations of companies subject to the small companies regime).
446Filing obligations of unquoted companies
(1)The directors of an unquoted company must deliver to the registrar for each financial year of the company a copy of—
(2)The directors must also deliver to the registrar a copy of the auditor’s report on those accounts (and the directors' report).
(3)The copies of the balance sheet and directors' report delivered to the registrar under this section must state the name of the person who signed it on behalf of the board.
(4)The copy of the auditor’s report delivered to the registrar under this section must—
(5)This section does not apply to companies within—
(a)section 444 (filing obligations of companies subject to the small companies regime), or
(b)section 445 (filing obligations of medium-sized companies).
447Filing obligations of quoted companies
(1)The directors of a quoted company must deliver to the registrar for each financial year of the company a copy of—
(2)They must also deliver a copy of the auditor’s report on those accounts (and on the directors' remuneration report and the directors' report).
(3)The copies of the balance sheet, the directors' remuneration report and the directors' report delivered to the registrar under this section must state the name of the person who signed it on behalf of the board.
448Unlimited companies exempt from obligation to file accounts
(1)The directors of an unlimited company are not required to deliver accounts and reports to the registrar in respect of a financial year if the following conditions are met.
(2)The conditions are that at no time during the relevant accounting reference period—
(3)The exemption conferred by this section does not apply if—
(a)the company is a banking or insurance company or the parent company of a banking or insurance group, or
(b)the company is a qualifying company within the meaning of the Partnerships and Unlimited Companies (Accounts) Regulations 1993 (S.I. 1993/1820).
(4)Where a company is exempt by virtue of this section from the obligation to deliver accounts—
(a)section 434(3) (requirements in connection with publication of statutory accounts: meaning of “statutory accounts”) has effect with the substitution for the words “as required to be delivered to the registrar under section 441” of the words “as prepared in accordance with this Part and approved by the board of directors”; and
(b)section 435(1)(b) (requirements in connection with publication of non-statutory accounts: statement whether statutory accounts delivered) has effect with the substitution for the words from “whether statutory accounts” to “have been delivered to the registrar” of the words “that the company is exempt from the requirement to deliver statutory accounts”.
(5)In this section the “relevant accounting reference period”, in relation to a financial year, means the accounting reference period by reference to which that financial year was determined.
Chapter 12Supplementary provisions
464Accounting standards
(1)In this Part “accounting standards” means statements of standard accounting practice issued by such body or bodies as may be prescribed by regulations.
(2)References in this Part to accounting standards applicable to a company’s annual accounts are to such standards as are, in accordance with their terms, relevant to the company’s circumstances and to the accounts.
(3)Regulations under this section may contain such transitional and other supplementary and incidental provisions as appear to the Secretary of State to be appropriate.
466Companies qualifying as medium-sized: parent companies
(1)A parent company qualifies as a medium-sized company in relation to a financial year only if the group headed by it qualifies as a medium-sized group.
(2)A group qualifies as medium-sized in relation to the parent company’s first financial year if the qualifying conditions are met in that year.
(3)A group qualifies as medium-sized in relation to a subsequent financial year of the parent company—
(b)if the qualifying conditions are met in that year and the group qualified as medium-sized in relation to the preceding financial year;
(c)if the qualifying conditions were met in the preceding financial year and the group qualified as medium-sized in relation to that year.
1. Aggregate turnover Not more than £22.8 million net (or £27.36 million gross)
2. Aggregate balance sheet total Not more than £11.4 million net (or £13.68 million gross)
(5)The aggregate figures are ascertained by aggregating the relevant figures determined in accordance with section 465 for each member of the group.
467Companies excluded from being treated as medium-sized
(1)A company is not entitled to take advantage of any of the provisions of this Part relating to companies qualifying as medium-sized if it was at any time within the financial year in question—
(i)has permission under Part 4 of the Financial Services and Markets Act 2000 (c. 8) to carry on a regulated activity, or
(b)a body corporate (other than a company) whose shares are admitted to trading on a regulated market,
(c)a person (other than a small company) who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity,
(3)A company is a small company for the purposes of subsection (2) if it qualified as small in relation to its last financial year ending on or before the end of the financial year in question.
468General power to make further provision about accounts and reports
(a)the accounts and reports that companies are required to prepare;
(b)the categories of companies required to prepare accounts and reports of any description;
(c)the form and content of the accounts and reports that companies are required to prepare;
(d)the obligations of companies and others as regards—
(i)the approval of accounts and reports,
(ii)the sending of accounts and reports to members and others,
(iii)the laying of accounts and reports before the company in general meeting,
(iv)the delivery of copies of accounts and reports to the registrar, and
(v)the publication of accounts and reports.
(2)The regulations may amend this Part by adding, altering or repealing provisions.
(3)But they must not amend (other than consequentially)—
(4)The regulations may create criminal offences in cases corresponding to those in which an offence is created by an existing provision of this Part.
(5)The regulations may provide for civil penalties in circumstances corresponding to those within section 453(1) (civil penalty for failure to file accounts and reports).
The provisions of section 453(2) to (5) apply in relation to any such penalty.
469Preparation and filing of accounts in euros
(2)When complying with section 441 (duty to file accounts and reports), the directors of a company may deliver to the registrar an additional copy of the company’s annual accounts in which the amounts have been translated into euros.
(4)For the purposes of sections 434 and 435 (requirements in connection with published accounts) any additional copy of the company’s annual accounts delivered to the registrar under subsection (2) above shall be treated as statutory accounts of the company.
In the case of such a copy, references in those sections to the auditor’s report on the company’s annual accounts shall be read as references to the auditor’s report on the annual accounts of which it is a copy.
471Meaning of “annual accounts” and related expressions
(1)In this Part a company’s “annual accounts”, in relation to a financial year, means—
(a)the company’s individual accounts for that year (see section 394), and
(b)any group accounts prepared by the company for that year (see sections 398 and 399).
(c)the auditor’s report on those accounts and the directors' report (unless the company is exempt from audit).
(d)the auditor’s report on those accounts, on the auditable part of the directors' remuneration report and on the directors' report.
472Notes to the accounts
(1)Information required by this Part to be given in notes to a company’s annual accounts may be contained in the accounts or in a separate document annexed to the accounts.
(2)References in this Part to a company’s annual accounts, or to a balance sheet or profit and loss account, include notes to the accounts giving information which is required by any provision of this Act or international accounting standards, and required or allowed by any such provision to be given in a note to company accounts.
473Parliamentary procedure for certain regulations under this Part
474Minor definitions
“e-money issuer” means a person who has permission under Part 4 of the Financial Services and Markets Act 2000 (c. 8) to carry on the activity of issuing electronic money within the meaning of article 9B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);
“ISD investment firm” has the meaning given by the Glossary forming part of the Handbook made by the Financial Services Authority under the Financial Services and Markets Act 2000;
“UCITS management company” has the meaning given by the Glossary forming part of the Handbook made by the Financial Services Authority under the Financial Services and Markets Act 2000 (c. 8).