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

Chapter 29Small Company Abbreviated Financial Statements

1. Introduction
2. Content of Abbreviated Financial Statements
3. The Strategic Report
4. Micro-Entity Issues
5. Appendix – Small company abbreviated financial statements

Introduction

Under the provisions of Section 444 of the Companies Act 2006, a company classed as small can file ‘abbreviated financial statements’ with the Registrar of Companies (Companies House). Medium-sized companies can also file such financial statements, although the abbreviated financial statements that medium-sized companies file are not significantly different from the full financial statements (generally only omitting an analysis of turnover and derivative gross profit or loss).

At the time of writing the small companies regime was undergoing a significant overhaul due to the new EU Accounting Directive, which the UK has until July 2015 to transpose into companies legislation (Chapter 4 examines this issue in more detail). At present the thresholds for small and medium-sized companies are as follows:

Balance sheet total(gross assets)	Turnover	No. of employees
Small company	£3.26m	£6.5m	50
Small group	£3.26m net£3.9m gross	£6.5m net£7.8m gross	50
Medium-sized company	£12.9m	£25.9m	250
Medium-sized group	£12.9m net£15.5m gross	£25.9m net£31.1m gross	250

Where references to ‘net’ and ‘gross’ are made, this is in relation to intra-group trading. ‘Gross’ means that intra-group trading (and the effects of such) have not been eliminated; ‘net’ ...