Every company registered with the Registrar of Companies must produce its accounts in complaint with the UK Company Law. This includes the full accounts prepared for shareholders. The full accounts are also called director report. Small company which is not entitled to file abbreviated accounts to Companies House is required to file its full accounts. All accounts filed with the Registrar of Companies are for public inspection.
The amount of information required to be disclosed in your directors’ report is dependent on your company size. Generally, small and medium sized company are eligible to file abbreviated accounts if they can satisfy the criteria set out in the Companies Act 2006 and the benefit of filing abbreviated accounts is that less detailed information is put for public record.
The information required to be presented in a director report for a small company include the following.
The company must disclose its principal activity including whether any significant changes during the financial year.
Directors/Company Secretary Appointment and Resignation
The name of each person who was the director during the year must be disclosed. If the person was not a director for the complete accounting year, the date of appointment and resignation must be disclosed.
Remember that the name of the company secretary must also be disclosed if one was appointed and/or removed during the year. The appointment of a secretary for a private limited company is now optional under the Companies Act 2006.
Political and charitable donations
If the company has made donations to political parties and charities during the financial year and the amounts are more than £200, details of the amounts and the name of each person or organization receiving such amount must be given.
A wholly owned subsidiary may choose not to include this information in their directors’ report but the parent company must disclose any such donations made by the subsidiary.
The donations disclosure limit has increased to £2,000 for accounting periods starting 6 April 2008.
The company must disclose any changes to their share structure during the year and this information must agree to the annual return submitted to Companies House.
Other matters to be included in Directors Report include going concern issues if the company has doubt on going concern of the business and report on the business performance and risks management of the company during the year and the foreseeable future.
The disclosure requirements discussed above are of a typical small company accounts and these are the minimum information required by your accountant to complete your statutory accounts.
If you require help in doing your company accounts, Accountants at Concise Accountancy are able to help you to prepare your accounts in a statutory format set out by the company law and submit to Companies House for you.
Concise Accountancy offers fixed fee accounting packages to limited companies. These packages include taking care of your company accounts and corporate tax return for you. The company accounts will be prepared in a statutory format set out by the company law. Our services extend to submitting the accounts to Companies House and HM Revenue and Customs for you.
Feel free to contact our accountants to discuss your accounting requirements.
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