The Companies, Partnerships and Groups (Accounts and Non-Financial Reporting) Regulations 2016

Group accounts

3.—(1) In section 384B (companies excluded from being treated as micro-entities)(1), in subsection (2)(a), for “398” substitute “399(4)”.

(2) Omit—

(a) section 398 (option to prepare group accounts), and

(b) the heading preceding section 398.

(3) In the heading preceding section 399 (duty to prepare group accounts)(2), omit “: other companies”.

(4) In section 399—

(a) omit subsection (1);

(b) in subsection (2), for the first occurrence of “the company” substitute “a company”;

(c) for subsection (2A), substitute—

“(2A) A company is exempt from the requirement to prepare group accounts if—

(a) at the end of the financial year, the company—

(i) is subject to the small companies regime, or

(ii) would be subject to the small companies regime but for being a public company, and

(b) is not a member of a group which, at any time during the financial year, has an undertaking falling within subsection (2B) as a member.

(2B) An undertaking falls within this subsection if—

(a) it is established under the law of an EEA State,

(b) it has to prepare accounts in accordance with Directive 2013/34/EU of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings(3), and

(c) it is—

(i) an undertaking which has been designated by an EEA State as a public-interest entity under that Directive,

(ii) an undertaking whose transferable securities are admitted to trading on a regulated market in an EEA State,

(iii) a credit institution within the meaning given by Article 4(1)(1) of Regulation (EU) No. 575/2013 of the European Parliament and of the Council(4), other than one listed in Article 2 of Directive 2013/36/EU of the European Parliament and of the Council on access to the activity of credit institutions and investment firms(5), or

(iv) an insurance undertaking within the meaning given by Article 2(1) of Council Directive 91/674/EEC of the European Parliament and of the Council on the annual accounts of insurance undertakings(6).”; and

(d) in subsection (4), omit “to which this section applies but”.

(5) In section 471 (meaning of “annual accounts” and related expressions)(7), in subsection (1)(b), for “sections 398 and” substitute “section”.

(1)

Section 384B was inserted by S.I. 2013/3008.

(2)

Section 399 was amended by S.I. 2015/980.

(3)

OJ No L 182, 29.06.13, p19, amended by Directive 2014/95/EU of the European Parliament and of the Council amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups (OJ No L 330, 15.11.14, p1) and Council Directive 2014/102/EU adapting Directive 2013/34/EU by reason of the accession of the Republic of Croatia (OJ No L 334, 21.11.14, p86).

(4)

OJ No L 176, 27.06.13, p1, last amended by Regulation (EU) 2016/1014 of the European Parliament and of the Council (OJ No L 171, 29.06.16, p153).

(5)

OJ No L 176, 27.06.13, p338, last amended by Directive 2014/59/EU of the European Parliament and of the Council (OJ No L 173, 12.06.14, p190).

(6)

OJ No L 374, 31.12.91, p7, last amended by Directive 2006/46/EC of the European Parliament and of the Council (OJ No L224, 16.08.06, p1.

(7)

There are amendments to section 471 but none is relevant to these Regulations.