The Companies and Groups (Accounts and Reports) Regulations 2015 come into force
07 Apr, 2015
‘The Companies and Groups (Accounts and Reports) Regulations 2015’ (“the Regulations”) which implement the EU Accounting Directive into the UK are now in force.
The Regulations implement Chapters 1-9 of the Directive outlined by the Department for Business, Innovation and Skills (BIS) in January 2015. They are applicable for financial years commencing on or after 1 January 2016 and come into force from 6 April 2015 with early adoption permitted, with one exception, for financial years commencing on or after 1 January 2015. The exception is that the increased size limits cannot be adopted for the purpose of taking exemption from audit until 2016. This is to allow for time for the Government to consider responses to the questions asked on small company audit exemption as part of its consultation on implementing the EU audit reform legislation. The requirement for companies to include the full details of subsidiaries in the consolidated financial statements comes into force earlier, being applicable for annual accounts approved on or after 1 July 2015.
These changes only apply to companies and ‘qualifying partnerships’ preparing accounts under the Partnerships (Accounts) Regulations 2008; at present they do not apply to limited liability partnerships.
The Government has decided that it needs to do more work on the accounting and audit for charitable companies; this work is on-going with the Charity Commission and others.
As a result of the UK implementation of the Directive the Financial Reporting Council (FRC) has recently published three financial reporting exposure drafts (FREDs) proposing necessary changes to the existing UK financial reporting framework for small and micro-entities. The FREDS are consistent with the requirements outlined in the Regulations. The closing date for comments on the FREDs is 30 April 2015.
Click for:
- The Companies (Partnerships and Groups (Accounts and Reports) Regulations 2015) (link to statutory instrument).
- Our previous news story on the government response on the UK implementation of chapters 1-9 of the EU Accounting Directive
- Our previous news story on the FRC consultation on proposed revisions to the accounting standards for small and micro entities
- Our Need to know publication on the requirement that Annual reports need to include a full listing of subsidiaries from 1 July 2015.
- Our Closer look publication detailing the changes as a result of the UK implementation of the EU Accounting Directive
Related Topics
- FRSSE (effective January 2015)
- FRED 50 Residential Management Companies' Financial Statements
- FRED 52: ‘Draft amendments to the Financial Reporting Standard for Smaller Entities (effective April 2008) - Micro-entities
- FRED 58 — Draft FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime
- FRED 59 — Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Small entities and other minor amendments
- FRED 60 — Draft amendments to FRS 100 Application of Financial Reporting Requirements and FRS 101 Reduced Disclosure Framework
