Chapter 11: Annual Report and Accounts, and Auditors Flashcards
Where should accounting records be kept?
At the registered office
Why is it important for companies to prepare and publish annual accounts?
It is a legal requirement, and is useful in providing information to directors, shareholders, creditors, customers and investors.
How is the accounting reference date set for a company on incorporation?
The last day of the month on which the anniversary of incorporation falls.
What are the restrictions on a company changing its accounting reference date?
No change if:
- accounts are overdue
- beyond 18 months
- already changed in last 5 years, except in certain circumstances such as aligning with parent company,
What are abridged accounts and when can they be filed?
Simplified accounts, which can be filed by small companies if unanimous consent of members if gained.
What criteria must a company meet to qualify as small sized?
- turnover £10.2 m or less
- balance sheet £5.1 m or less
- average employees less than 50
By when must a public company file its annual accounts?
Within 6 months of the end of the accounting reference period
By when must a private company file its annual accounts?
Within 9 months of the end of the accounting reference period.
What are the statutory timescales in respect of the circulation of annual accounts to members?
At least 21 prior to AGM for a public company.
No later than end of accounting period for private.
What are the provisions of CA 2006 s 463 ?
A director will be liable to compensate for any loss suffered as a result of any untrue or misleading statements or omissions in the annual report.
What criteria must a company meet to qualify as medium sized?
- turnover less than £36 m
- balance sheet £18 m or less
- 250 employees or fewer.
What criteria must a company meet to qualify as medium sized?
- turnover less than £36 m
- balance sheet £18 m or less
- 250 employees or fewer.
What are the provisions of CA 2006 s 1270?
Listed companies are liable to investors who suffer a loss as a result of untrue or misleading statements in the annual report.
What key information must be included in the strategic report?
- fair review of company business
- description of principal risks and uncertainties
- KPIs (financial and non-financial)
- additional disclosures for quoted companies
Why has the importance of the directors’ report diminished?
Due to introduction of the strategic report
