The Partnerships and Unlimited Companies (Accounts) (Amendment) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Partnerships and Unlimited Companies (Accounts) Regulations 1993 (S.I. 1993/1820) (“the 1993 Regulations”).The 1993 Regulations implemented Council Directive 90/605/EEC of 8th November 1990 amending Directive 78/660/EEC on annual accounts (Official Journal No. L222/11 of 14th August 1978) (the Fourth EC Company Law Directive) and Directive 83/349/EEC on consolidated accounts (Official Journal No. L193/1 of 18th July 1983) (the Seventh EC Company Law Directive) as regards the scope of those Directives (Official Journal No. L317/60 of 16th November 1990).

The 1993 Regulations apply to partnerships, each of whose members is either (a) a limited company or (b) an unlimited company or a Scottish firm, each of whose members is a limited company (regulation 3).Members of such “qualifying partnerships” (general partners in the case of limited partnerships) are required by regulation 4 of the 1993 Regulations to prepare accounts and a directors' report, and to obtain an auditors' report, in accordance with the provisions of Part 7 of the Companies Act 1985 (“the 1985 Act”), subject to certain modifications set out in the Schedule to the 1993 Regulations.

Part 7 of the 1985 Act has been amended in particular by the Companies Act 1985 (Miscellaneous Accounting Amendments) Regulations 1996 (S.I. 1996/189), by the Company Accounts (Disclosure of Directors' Emoluments) Regulations 1997 (S.I. 1997/570), by the Companies Act 1985 (International Accounting Standards and Other Accounting Amendments) Regulations 2004 (S.I. 2004/2947) and by the Companies Act 1985 (Operating and Financial Review and Directors' Report etc.) Regulations 2005 (S.I. 2005/1011).These Regulations amend the 1993 Regulations consequentially on those amendments.

Regulation 2 of these Regulations amends regulation 7 of the 1993 Regulations so that the exemption conferred by that regulation extends to where the group accounts are prepared in accordance with international accounting standards. Regulation 3 makes consequential changes to the provisions of the 1985 Act as applied by the Schedule to the 1993 Regulations.

Full regulatory impact assessments of the effect that S.I. 2004/2947 and S.I. 2005/1011, and associated instruments such as these Regulations, will have on the costs of business are available from the Department of Trade and Industry, Corporate Law and Governance Directorate, 5th Floor 1 Victoria Street, London SW1H 0ET (they are also available electronically at www.dti.gov.uk/cld).Copies have also been placed in the libraries of both Houses of Parliament.