C4C5C6C7Part 15Accounts and reports

Annotations:
Modifications etc. (not altering text)
C5

Pt. 15 applied (with modifications) (6.4.2008) by The Partnerships (Accounts) Regulations 2008 (S.I. 2008/569), regs. 4, 7, Sch. Pt. 1

C6

Pt. 15 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 16 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

C3C9 Chapter 4Annual accounts

Annotations:
Modifications etc. (not altering text)
C9

Pt. 15 Ch. 4 applied (with modifications) (31.7.2015) by The European Grouping of Territorial Cooperation Regulations 2015 (S.I. 2015/1493), regs. 1(2), 7(1) (with reg. 11)

Individual accounts

C1C2C8C10395Individual accounts: applicable accounting framework

1

A company's individual accounts may be prepared—

a

in accordance with section 396 (“Companies Act individual accounts”), or

b

in accordance with international accounting standards (“IAS individual accounts”).

This is subject to the following provisions of this section and to section 407 (consistency of financial reporting within group).

2

The individual accounts of a company that is a charity must be Companies Act individual accounts.

3

After the first financial year in which the directors of a company prepare IAS individual accounts (“the first IAS year”), all subsequent individual accounts of the company must be prepared in accordance with international accounting standards unless there is a relevant change of circumstance. F1This is subject to subsection (4A).

4

There is a relevant change of circumstance if, at any time during or after the first IAS year—

a

the company becomes a subsidiary undertaking of another undertaking that does not prepare IAS individual accounts,

F2aa

the company ceases to be a subsidiary undertaking,

b

the company ceases to be a company with securities admitted to trading on a regulated market in an EEA State, or

c

a parent undertaking of the company ceases to be an undertaking with securities admitted to trading on a regulated market in an EEA State.

F34A

After a financial year in which the directors of a company prepare IAS individual accounts for the company, the directors may change to preparing Companies Act individual accounts for a reason other than a relevant change of circumstance provided they have not changed to Companies Act individual accounts in the period of five years preceding the first day of that financial year.

4B

In calculating the five year period for the purpose of subsection (4A), no account should be taken of a change due to a relevant change of circumstance.

5

If, having changed to preparing Companies Act individual accounts F4. . . , the directors again prepare IAS individual accounts for the company, subsections (3) and (4) apply again as if the first financial year for which such accounts are again prepared were the first IAS year.