Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

Chapter 1General Requirements of the Companies Act 2006

1. Introduction
2. Accounting Requirements under the Companies Act 2006
3. True and Fair and Adequate Accounting Records
4. International Financial Reporting Standards
5. Generally Accepted Accounting Practice
6. Substance of Transactions
7. Directors' Reports
8. Group Accounts
9. Approval of Financial Statements
10. Interaction of FRS 102 Terminology with Companies Act 2006 Terminology
11. Micro-Entities Legislation

Introduction

In the United Kingdom and Republic of Ireland (RoI), financial statements are prepared using Generally Accepted Accounting Practice (GAAP) and legislation prescribed in the form of the Companies Act 2006. Additional legislation also applies to certain financial statements (for example, the Charities Act) but this publication will only consider the Companies Act 2006 in relation to accounting by companies. At the outset of this chapter it is important to emphasise that the small companies regime in the UK is planned for significant change and these changes are discussed in more detail in Chapter 4. Readers are advised to keep up to date with all developments in this area by regularly reviewing the Department for Business Innovation and Skills' website as well as the Financial Reporting Council's website, as consultation documents were issued in September 2014 outlining proposals to overhaul the small companies regime in the light of the EU Accounting Directive. This chapter examines some of the proposals, with more detail being ...