Part 15Accounts and reports

Chapter 4Annual accounts

Individual accounts

F1 394A Individual accounts: exemption for dormant subsidiaries

(1)

A company is exempt from the requirement to prepare individual accounts for a financial year if—

(a)

it is itself a subsidiary undertaking,

(b)

it has been dormant throughout the whole of that year, and

(c)

its parent undertaking is established under the law of an EEA State.

(2)

Exemption is conditional upon compliance with all of the following conditions—

(a)

all members of the company must agree to the exemption in respect of the financial year in question,

(b)

the parent undertaking must give a guarantee under section 394C in respect of that year,

(c)

the company must be included in the consolidated accounts drawn up for that year or to an earlier date in that year by the parent undertaking in accordance with—

F2(i)

the provisions of 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, or

(ii)

international accounting standards,

(d)

the parent undertaking must disclose in the notes to the consolidated accounts that the company is exempt from the requirement to prepare individual accounts by virtue of this section, and

(e)

the directors of the company must deliver to the registrar within the period for filing the company's accounts and reports for that year—

(i)

a written notice of the agreement referred to in subsection (2)(a),

(ii)

the statement referred to in section 394C(1),

(iii)

a copy of the consolidated accounts referred to in subsection (2)(c),

(iv)

a copy of the auditor's report on those accounts, and

(v)

a copy of the consolidated annual report drawn up by the parent undertaking.