The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015

Amendment of Part 1 (general rules and formats) of Schedule 1 (Companies Act individual accounts) to the Small Companies Accounts Regulations U.K.

16.—(1) Part 1 of Schedule 1 to the Small Companies Accounts Regulations is amended as follows.

(2) In Section A (general rules)—

(a) in sub-paragraph (1)(b) of paragraph 1, for the words “any one” substitute “ either ”,

(b) at the beginning of paragraph (3), insert “ Subject to paragraph 1A ”.

(c) after paragraph 1, insert—

“1A.— (1) Where appropriate to the circumstances of a company's business, the company's directors may, with reference to one of the formats in Section B, draw up an abridged balance sheet showing only those items in that format preceded by letters and roman numerals, provided that—

(a) in the case of format 1, note (5) of the notes to the formats is complied with,

(b) in the case of format 2, notes (5) and (10) of those notes are complied with, and

(c) all of the members of the company have consented to the drawing up of the abridged balance sheet.

(2) Where appropriate to the circumstances of a company's business, the company's directors may, with reference to one of the formats in Section B, draw up an abridged profit and loss account, combining under one item called “Gross profit or loss”—

(a) items 1, 2, 3 and 6 in the case of format 1, and

(b) items 1 to 5 in the case of format 2

provided that, in either case, all of the members of the company have consented to the drawing up of the abridged profit and loss account.

(3) Such consent as is referred to in sub-paragraphs (1) and (2) may only be given as regards the preparation of, as appropriate, the balance sheet or profit and loss account in respect of the preceding financial year.

(4) Sub-paragraphs (1) and (2) do not apply in relation to the preparation of, as appropriate, a company's balance sheet or profit and loss account for a particular financial year if the company was a charity at any time within that year.

1B.— (1) The company's directors may adapt one of the balance sheet formats in Section B so to distinguish between current and non-current items in a different way, provided that—

(a) the information given is at least equivalent to that which would have been required by the use of such format had it not been thus adapted, and

(b) the presentation of those items is in accordance with generally accepted accounting principles or practice.

(2) The company's directors may, otherwise than pursuant to paragraph 1A(2), adapt one of the profit and loss account formats in Section B, provided that—

(a) the information given is at least equivalent to that which would have been required by the use of such format had it not been thus adapted, and

(b) the presentation is in accordance with generally accepted accounting principles or practice.

1C.   So far as is practicable, the following provisions of Section A of this Part of this Schedule apply to the balance sheet or profit or loss account of a company notwithstanding any such abridgment or adaptation pursuant to paragraph 1A or 1B.”

(d) In paragraph 6, omit the words “on ordinary activities”.

(e) After paragraph 9, insert—

“9A.   Where an asset or liability relates to more than one item in the balance sheet, the relationship of such asset or liability to the relevant items must be disclosed either under those items or in the notes to the accounts.”

(3) In Section B (the required formats for the accounts of companies other than micro-entities)—

(a) for the heading “LIABILITIES” in balance sheet format 2, substitute “ CAPITAL, RESERVES AND LIABILITIES ”,

(b) in note (5) of the “Notes on the balance sheet formats”, for the words “unless the aggregate amount of debtors falling due after more than one year is disclosed in the notes to the accounts”, substitute “ and, in the case of format 2, the aggregate amount falling due after more than one year must also be shown ”,

(c) in note (10) of the “Notes on the balance sheet formats”, omit the words “unless the aggregate amount of creditors falling due within one year and the aggregate amount of creditors falling due after more than one year is disclosed in the notes to the accounts”,

(d) in profit and loss account format 1—

(i) at item 12, for the word “charges”, substitute “ expenses ”,

(ii) at item 13, omit the words “on ordinary activities”,

(iii) at item 14, omit the words “on ordinary activities”, and

(iv) omit items 15, 16, 17 and 18,

(e) in profit and loss account format 2—

(i) for item 7(b), substitute—

“(b) Amounts written off current assets, to the extent that they exceed write-offs which are normal in the undertaking concerned”

(ii) at item 8, for the word “charges”, substitute “ expenses ”,

(iii) at item 14, for the word “charges”, substitute “ expenses ”,

(iv) at item 15, omit the words “on ordinary activities”,

(v) at item 16, omit the words “on ordinary activities”, and

(vi) omit items 17, 18, 19 and 20.

(f) omit profit and loss account format 3,

(g) omit profit and loss account format 4,

(h) in note (11) of the “Notes on the profit and loss account formats”, omit the words “and Format 3, items A 1, 2 and 3”,

(i) in note (12) of the “Notes on the profit and loss account formats”, omit the words “Format 3, items B 5 and 6 and Format 4, items B 7 and 8”,

(j) in the title to note (13) of the “Notes on the profit and loss account formats”, for the word “charges” substitute “ expenses ” and in that note omit the words “Format 3, item A 5 and Format 4, item A 7”, and

(k) omit note (14) of the “Notes on the profit and loss account formats”.

(4) In Section C (the required formats for the accounts of micro-entities), for the heading “LIABILITIES” in balance sheet format 2, substitute “ CAPITAL, RESERVES AND LIABILITIES ”.