Accounts and Accounting Reference Dates

Accounting reference dates

A guide to the rules governing public disclosure of accounts by all limited companies.

The guide covers three main topics:

• Accounting reference dates (ARD). The ARD is the financial year-end. It is also the date that determines when accounts are due for delivery to Companies House. Every company has an ARD. Companies House must be told in advance when the date is about to be changed. It can be costly if you forget to tell us and prepare accounts to the wrong date. If you do, we will refuse registration of the accounts and you will have to prepare fresh accounts to the ARD held on record at Companies House.
• Preparing and filing accounts. There are deadlines by which accounts must be prepared and delivered to Companies House. If you miss the deadline an automatic penalty will be levied, without exception. So it is important that you, your accountants and your auditors are aware of the filing deadline.
• Content of accounts.This guide cannot tell you how to prepare company accounts - your accountant has specialist knowledge of this. But it will tell you what documents make up a set of accounts, what exemptions you may be able to take advantage of, and whether you will need to appoint an auditor.

The Financial Year

Every company has a duty to keep accounting records and must prepare annual accounts that report on the performance and activities of the company during the year. The period reported on in the accounts is called the financial year. This starts on the day after the previous financial year ended or, in the case of a new company, on the day of incorporation.

A more precise term for a financial year is an accounting reference period

The accounting reference period ends on the accounting reference date (ARD) - or a date up to seven days either side of the ARD, if this is more convenient.

How is the ARD fixed?

For a new company, the ARD is set using its date of incorporation. You can change the first accounting reference period and subsequent accounting reference periods by changing the ARD.

What period must a company's first accounts cover?

For all new companies, the first accounting reference period is automatically set as the first anniversary of the last day in the month in which the company was incorporated. For example, if the company was incorporated on 10 June 1999 its ARD would be set at 30 June, and the first accounts would cover a period from 10 June 1999 to 30 June 2000 - or up to seven days either side of that date. Although the ARD is set on incorporation, you can change it.

Changing the ARD

By completing Form 225 and sending it to Companies House. But the change can only be made to the current or the immediately previous accounting reference period and you have to register the new ARD before the filing deadline of the accounts. In other words, if Companies House is expecting accounts for a particular accounting reference period and they become overdue, it is too late to say that you wanted to change the ARD. Private companies normally have 10 months and public companies 7 months to send their accounts to Companies House.

Restrictions on changing the ARD

You may change an ARD by shortening an accounting reference period as often as you like and by as many months as you like. However, there are restrictions on extending accounting reference periods:

• You may not extend a period so that it lasts more than 18 months from the start date of the accounting period.
• You may not extend more than once in 5 years unless:
• (a) the company is subject to an administration order; or
• (b) the Secretary of State has directed this; or
• (c) the company is aligning its accounting reference date with that of a subsidiary or parent undertaking established within the European Economic Area. Countries comprising the European Economic Area are as follows:
• Iceland, Norway, Finland, Sweden, Ireland, United Kingdom, Denmark, Germany, Netherlands, Belgium, Luxembourg, Austria, Portugal, Spain, France, Italy, Greece, Liechtenstein, Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia, Bulgaria, Romania.

What does a set of accounts include?

Generally, accounts must include:

• a profit and loss account (or income and expenditure account if the company is not trading for profit);
• a balance sheet signed by a director;
• an auditors' report signed by the auditor (if appropriate);
• a directors' report signed by a director or the secretary of the company;
• notes to the accounts; and
• group accounts (if appropriate).

* For accounting periods beginning on or after 1 October 2007, directors’ reports must contain a business review.  This does not apply to companies that qualify as small.

Certain information may be omitted from the accounts of medium-sized and small including very small and dormant companies prepared under the special provisions of part VII of the Act. These companies may further abbreviate the accounts they file at Companies House. Very small companies and dormant companies may also be exempt from audit.

For financial years beginning on or after 1 January 2005, the accounts may be prepared in accordance with international accounting standards.

Do all companies have to deliver their accounts to the Registrar?

All limited and public limited companies must send their accounts to the Registrar. If they are eligible and wish to, medium-sized, small, very small and dormant companies may prepare and file 'abbreviated accounts'

What period must the accounts cover?

A company's first accounts cover the period starting on the date of incorporation, not the first day of trading. They end on the accounting reference date (ARD) or up to 7 days either side of that date.

Subsequent accounts start on the day after the previous accounts ended. They finish on the ARD or up to 7 days either side of it.

How long do I have to file my company's first accounts?

If you are filing your company's first accounts and they cover a period of more than 12 months, they must be delivered to the Registrar within 22 months of the date of incorporation for private companies and 19 months for public companies or 3 months from the ARD, whichever is longer.

If the first accounts cover a period of 12 months or less, the normal times allowed for delivering accounts apply.

How long do I normally have to file my accounts?

Unless you are filing your company's first accounts the time normally allowed for delivering accounts to Companies House is:

• for a private company, 10 months from the ARD;
• for a public company, 7 months from the ARD.

However, if the accounting reference period has been shortened, the time allowed for filing the accounts is the longer of:

• for a private company 10 months (or for a public company 7 months) from the ARD; or
• 3 months from the date of the notice (Form 225).

Please be aware of the definition of a period of months in connection with filing accounts.

A period of months after a given date ends on the corresponding date in the appropriate month. For example a private company with an ARD of 30 September has until midnight on 30 July of the following year to deliver its accounts, not 31 July. Similarly, a private company with an ARD of 28 February has until 28 December, not 31 December.

If there is no corresponding date, the last day of the month will apply. For example, a private company with an ARD of 30 April has until midnight on 28 February the following year to deliver its accounts.

Can the time allowed for delivering accounts be extended?

If a company carries on business or has interests overseas , and the financial year begins before 1 January 2005, a 3-month extension to the normal filing period can be claimed by delivering Form 244 to Companies House. This form must be delivered before the normal filing deadline and this must be done for every year that the company wishes to claim the extension. It does not automatically apply from one year to the next. ( Form 244 cannot be used for financial years which begin on or after 1 January 2005 but an extension to the filing period may still be granted in exceptional circumstances – see below)

An application may be made to the Secretary of State for Business, Enterprise and Regulatory Reform to extend the time for laying and delivering accounts if there is a special reason for doing so; for example, if there has been an unforeseen event which was outside the control of the company and its auditors. The application must be made in writing and be delivered before the normal filing deadline, and must contain a full explanation of the reasons for the extension and the length of the extension needed.

8. What if the accounts are delivered late?

There is an automatic civil penalty for late filing. The amount depends on how late the accounts arrive and whether the company is private or public. The fixed penalties are as follows:

 

Length of delay	Public company	Private company
3 months or less	£ 500	£100
3 months one day to 6 months	£1000	£250
6 months one day to 12 months	£2000	£500
More than 12 months	£5000	£1000

 

Failing to deliver accounts on time is also a criminal offence for which company directors may be prosecuted.

Who can approve and sign accounts?

The accounts must be approved by the company's board of directors and signed before they are sent to Companies House.

• The balance sheet must be signed by a director, with any statements about accounting or filing exemptions appearing above the director's signature.
• The directors' report, if one is required, must be signed by a director or the company secretary.
• If an auditors' report, special auditors' report or accountants' report is attached to the accounts, then it must state the names of the auditors or accountants and be signed and dated* by them.

* Applies to accounts covering a period beginning on or after 1 January 2005.

Please note: A typewritten statement cannot be accepted as a signature.

 

Small and medium-sized company exemptions

What exemptions are available?

Certain small or medium-sized companies may prepare accounts for their members under the special provisions of sections 246 and 246A of the Companies Act 1985. In addition, they may prepare and deliver abbreviated accounts to the Registrar.

This chapter explains the exemptions available to small and medium-sized companies. Certain small companies with a turnover of less than £5.6 million (£250,000 for companies that are charities) and assets of less than £2.8 million can claim exemption from audit.

What is a small or medium-sized company?

Public companies and certain companies in the regulated sectors cannot qualify as small or medium-sized companies. Similarly, companies which are part of a group which has members who are public companies or certain companies in the regulated sector cannot qualify as small or medium-sized. For other companies, the size of the company (and in the case of a parent company the size of the group headed by it) in terms of its turnover, balance sheet total (meaning the total of the fixed and current assets) and average number of employees determines whether it is classed as small or medium-sized.

The exact conditions for qualifying as a small or medium-sized company are given below.

To be a small company, at least two of the following conditions must be met:

• annual turnover must be £5.6 million or less;
• the balance sheet total must be £2.8 million or less;
• the average number of employees must be 50 or fewer.

The above accounting exemption thresholds apply to financial years ending on or after 30 January 2004. For earlier financial years, to be a small company, at least 2 of the following conditions must be met:

• annual turnover must be £2.8 million or less;
• the balance sheet total must be £1.4 million or less;
• the average number of employees must be 50 or fewer.

To be a medium-sized company, at least two of the following conditions must be met:

• annual turnover must be £22.8 million or less;
• the balance sheet total must be £11.4 or less;
• the average number of employees must be 250 or fewer.

The above accounting exemption thresholds apply to financial years ending on or after 30 January 2004. For earlier financial years, to be a medium-sized company, at least 2 of the following conditions must be met:annual turnover must be £11.2 million or less; the balance sheet total must be £5.6 million or less; the average number of employees must be 250 or fewer

If the company is a parent company, it cannot qualify as a small or medium-sized company unless the group headed by it is also small or medium-sized. The exact conditions for qualifying as a small or medium-sized group are given at question 5.

Generally, a company qualifies as 'small' or 'medium-sized' in its first financial year, or in any subsequent financial year if it fulfils the conditions in that year and the year before. If the company ceases to be small or medium-sized, the exemption continues for the first year that the company does not fulfil the conditions.The exemption will continue uninterrupted if the company reverts to being small or medium-sized the following year - see the table below.

If you think the company might qualify as small or medium-sized, you should consult a professional accountant before you prepare 'special-provision' accounts. If you abbreviate the accounts, you will also need a special auditor's report for filing with the Registrar, confirming that the company qualifies to produce such accounts. This report is not needed if the company is exempt from audit.

The following table may help you decide whether you qualify to prepare 'small' or 'medium' accounts.

The table applies to small companies. For medium-sized companies simply substitute 'medium-sized' for 'small'.

Year 1	Year 2	Year 3	Qualified in:
			1st financial year
small			Yes
not small			No
			2nd financial year
small	small		Yes
small	not small		Yes
not small	small		No
			3rd financial year
small	small	not small	Yes
small	not small	small	Yes
not small	small	small	Yes
small	not small	not small	No
not small	small	not small	No
not small	not small	not small	No

 

What does a small or medium-sized company have to deliver to the Registrar?

The company can deliver the accounts which were prepared for its members under the special provisions of part VII of the Companies Act 1985, or it can deliver an abbreviated version of these accounts.

Abbreviated accounts of a small company must include:

• the abbreviated balance sheet and notes; and
• a special auditor's report (unless the company is also claiming audit exemption.

Abbreviated accounts of a medium-sized company must include:

• the abbreviated profit and loss account;
• the full balance sheet;
• a special auditor's report;
• the directors' report; and
• notes to the accounts.

The special auditor's report should state that in the auditor's opinion the company is entitled to deliver abbreviated accounts and that they have been properly prepared in accordance with section 246(5) or (6) or 246A(3) of the Companies Act 1985; as the case may be.

The balance sheet (and if appropriate, the directors' report) must contain a statement that the accounts are prepared in accordance with the special provisions in Part VII of the Companies Act 1985 relating to small or medium-sized companies, as the case may be.

What if the company would qualify as small or medium-sized, except that it is part of a group which has members who are public companies or companies in the regulated sectors?

For financial years beginning on or after 1 April 2005*, certain exemptions are available for small and medium-sized companies which fall into this category.

• Small Companies may omit certain information from the directors' report prepared for its shareholders (that is, amount to be paid as dividend, business review, statement of market value of fixed assets where substantially different from the balance sheet amount, miscellaneous disclosures and employee involvement) and the company need not deliver the directors' report to Companies House.
• Medium-sized companies may omit certain information from the business review in its directors' report (that is, analysis using key performance indicators so far as they relate to non-financial information).

(*After implementation, these provisions were subsequently back-dated to also apply to accounts covering a period beginning between 1 January 2005 and 1 April 2005 and ending on or after 1 October 2005).

5. Are there special rules for small and medium-sized groups?

Yes, a parent company need not prepare group accounts or send them to the Registrar if the group is small or medium-sized and none of its member companies is: a public company, a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, or a person who carries on insurance market activity.

To qualify as small, a group of companies must meet at least two of the following conditions:

• aggregate turnover must be £5.6 million net (£6.72 million gross) or less;
• the aggregate balance sheet total must be £2.8 million net (£3.36 million gross) or less;
• the aggregate average number of employees must be 50 or fewer.

To qualify as medium-sized, a group must satisfy at least two of the following conditions:

• its aggregate turnover must be £22.8 million net (£27.36 million gross) or less;
• the aggregate balance sheet total must be £11.4 million net (£13.68 million gross) or less;
• the aggregate average number of employees must be 250 or fewer.

Please note: The above accounting exemption thresholds apply to financial years ending on or after 30 January 2004. For earlier financial years, to qualify as medium-sized, a group must meet at least two of the following conditions:

• aggregate turnover must be £11.2 million net (or £13.44 million gross);
• the aggregate balance sheet total must be £5.6 million net (or £6.72 million gross);
• the aggregate average number of employees must be 250 or fewer.

Please note: For financial years ending on or after 31 December 2006 a small group is ineligible if any of its members is: a public company, a person (other than a small company) who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, a small company that is an authorised insurance company, a banking company, an e-money issuer a Markets In Financial Instruments Directive (MIFID) investment firm, a UCITS management company or a person who carries on insurance market activity.

6. What if a small or medium-sized company is required to prepare group accounts?

A small parent company which has prepared individual accounts for its members using the special provisions of section 246(2) or (3) of the Companies Act 1985, may choose to prepare group accounts under the special provisions of section 248A. However, a small group cannot file abbreviated accounts at Companies House. Group accounts prepared under section 248A must contain a statement above the signature on the balance sheet, confirming that they are prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies.

If a medium-sized company decides to prepare group accounts, they must be full group accounts.

Format of accounts

The format of the accounts must follow the relevant Schedules to the Companies Act 1985. The provisions relating to small and medium-sized companies are in Schedules 4, 5, 6, 8 and 8A.

For financial years beginning on or after 1 January 2005, the company may opt to prepare group accounts in accordance with international accounting standards. The parent company’s account and each of its subsidiary undertakings must be prepared using the same financial reporting framework, except to the extent that there are good reasons for not doing so.

How long do I have to deliver accounts to Companies House?

The same time applies as for all other accounts. The same penalties are imposed for late filing.

Audit exemptions for very small companies

What exemption is available?

There is total exemption from audit for certain small companies (including very small charitable companies) if they are eligible and wish to take advantage of it. Some charitable companies are exempt from audit but must provide an accountant's report on the accounts (partial exemption). Further details about how to claim exemption are in this chapter.

Which small companies qualify for audit exemption?

To qualify for total audit exemption, a company must

• qualify as small
• have a turnover of not more than £5.6 million; and
• have a balance sheet total of not more than £2.8 million.

For a charitable company to qualify for total audit exemption it must qualify as small, its gross income must not be more than £90,000 and its balance sheet total must not be more than £2.8 million (£1.4 million for financial years ended on or before 30 March 2004).

Charitable companies which qualify as small and have a gross income between £90,000 and £250,000 and a balance sheet total of no more than £1.4 million qualify for partial exemption.

Are all types of small companies eligible for the exemption?

No. Audited accounts must be delivered to Companies House if the company falls into any of the following categories:

(a) A parent company or subsidiary undertaking (unless dormant for the period during which it was a subsidiary) except where:

• the group qualifies as a small group or would qualify if all the bodies corporate in the group were companies; and
• the turnover for the whole group is not more than £5.6 million net or £6.72 million gross; and
• the group's combined balance sheet total is not more than £2.8 million net (£3.36 million gross).

Please note: The above audit exemption thresholds apply to financial years ending after 30 March 2004. For earlier financial years, a parent company or subsidiary undertaking (unless dormant for the period during which it was a subsidiary) cannot qualify except where the group qualifies as a small group or would qualify if all the bodies corporate in the group were companies ; and

• the turnover for the whole group is not more than £1 million net (or £1.2 million gross); and
• the group’s combined balance sheet total is not more than £1.4 million net (or £1.68 million gross).

(b) A public limited company unless the company is dormant

(c) A person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity (other than an appointed representative whose scope of appointment is limited to activities that are not regulated activities – see below).

“Regulated activity” does not include:

• arranging regulated mortgage contracts;
• assisting administration and performance of a contract of insurance;
• advising on regulated mortgage contracts; or
• dealing as agent, arranging deals in investments or advising on investments- where the activity concerns relevant investments that are not contractually based investment

Please note: For financial years ending on or after 31 December 2006, (c) no longer applies.  Instead, a member is ineligible if it is an authorised insurance company, a banking company, an e-money issuer, a investment firm or a UCITS management company.

(d) A person who carries on insurance market activity.

(e) A company where an audit is required by a member or members holding at least 10% of the nominal value of issued share capital or holding 10% of any class of shares; or - in the case of a company limited by guarantee - 10% of its members in number. The demand for the accounts to be audited should be in the form of written notice to the company, deposited at the registered office at least one month before the end of the financial year in question.

Some flat management companies may have to prepare audited accounts to comply with the terms of their lease.

What does an audit-exempt company need to send to Companies House?

If the company qualifies, unaudited accounts may be delivered to the Registrar in the form of an abbreviated balance sheet and notes. The balance sheet must contain the following statements above the director's signature:

(a) For the year ended . . . (date) the company was entitled to exemption under section 249A(1) of the Companies Act 1985. (In the case of charitable companies which are claiming partial exemption, the reference will be to section 249A(2)).

(b) Members have not required the company to obtain an audit in accordance with section 249B(2) of the Companies Act 1985;

(c) The directors acknowledge their responsibility for:

i. ensuring the company keeps accounting records which comply with section 221; and

ii. preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.

(d) The accounts have been prepared in accordance with the special provisions in Part VII of the Companies Act 1985 relating to small companies.

If the company chooses, it may deliver the unabbreviated accounts prepared for its members. The same statements must appear on the unabbreviated balance sheet.

Who can be a reporting accountant?

A reporting accountant is either:

• any member of a body listed below who, under the rules of that body, is entitled to engage in public practice, and who is eligible for appointment as a reporting accountant; or
• any person, (whether or not a member of any such body), who is eligible for appointment as a company auditor under the rules of that body.

The bodies referred to above are the:

(a) Institute of Chartered Accountants in England and Wales;

(b) Institute of Chartered Accountants of Scotland;

(c) Institute of Chartered Accountants in Ireland;

(d) Association of Chartered Certified Accountants;

(e) Association of Authorised Public Accountants;

(f) Association of Accounting Technicians;

(g) Association of International Accountants;

(h) Chartered Institute of Management Accountants;

(i) Institute of Chartered Secretaries and Administrators. (This new addition applies to financial years ending on or after 30 January 2004.)

An individual, body corporate or firm may be appointed as a reporting accountant. A partnership that is not a legal person may be appointed under section 26 of the Companies Act 1989.

The reporting accountant must be independent and meet the conditions set out in section 27 of the Companies Act 1989. This means, for example, that he or she cannot be an officer or employee of the company.

How long do I have to deliver accounts to Companies House?

The same time applies as for all other accounts. The same penalties are imposed for late filing..

Does an audit exempt company still have to send accounts to its members?

Yes. In accordance with the Companies Act 1985, members have a right to receive or demand copies of accounts and the related reports.

Possible drawbacks of unaudited accounts

Banks and credit managers rely on information available from Companies House to assess a company's creditworthiness and currently look for the reassurance of an independent audit. If it qualifies for audit exemption, a company will need to decide whether unaudited accounts are appropriate to its own circumstances.

Are annual accounts required if a company is not trading?

All limited companies, whether they trade or not, must deliver accounts to Companies House. However, a limited company may claim exemption from audit as a 'dormant company' if it has not traded during a financial year, and provided it meets certain other criteria.

Dormant companies do not need to appoint auditors and can deliver even simpler annual accounts to Companies House.

Audit exemption for dormant companies

What exemption is available?

Dormant companies can claim exemption from audit and need only prepare and deliver to Companies House an abbreviated balance sheet and notes. A profit-and-loss account and directors' report do not have to be included in dormant company accounts filed at Companies House but a directors' report must be provided to members.

Dormant company accounts can now be filed online using our Software Filing or WebFiling facilities..

What is a dormant company?

A company is dormant if it has had no 'significant accounting transactions' during the period.

When considering if a company is dormant you can disregard the following financial transactions:

• payment for shares taken by subscribers to the memorandum of association;
• fees paid to the Registrar of Companies for a change of company name, the re-registration of a company and filing annual returns; and
• payment made in respect of civil penalties imposed by the Registrar of Companies for delivering accounts to the Registrar after the statutory time allowed for filing.

A company may not take advantage of the dormant company audit exemption if it is:

(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity;

Please note: For financial years ending on or after 31 December 2006, (a) no longer applies.  Instead, a company cannot file dormant accounts if it is an authorised insurance company, a banking company, an e-money issuer, a Markets In Financial Instruments Directive (MIFID) investment firm or a UCITS management company.

(b) a person who carries on insurance market activity.

If the company has not been dormant since incorporation, but has become dormant, it may take advantage of the exemptions provided that:

• it has been dormant since the end of the previous financial year; and
• it does not have to prepare group accounts for that year; and
• it qualifies as a 'small company' in relation to that year, or would have qualified as small but for the fact that it is:
• a public company
• a person (other than a small company [for financial years ending on or after 31 December 2006]) who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity;
• a small company that is an authorised insurance company, a banking company, an e-money issuer, a a Markets In Financial Instruments Directive (MIFID) investment firm or a UCITS management company (only applies to financial years ending on or after 31 December 2006) or a person who carries on insurance market activity.

What information must dormant accounts contain?

Dormant accounts filed at Companies House need not include a profit-and-loss account or directors' report. Model balance sheets are shown at the end of this chapter.

Unaudited dormant accounts are much simpler than those of a trading company but must show:

• an abbreviated balance sheet containing statements above the director's signature to the effect that the company was dormant throughout the accounting period. The full text of the required statements is as shown at question 4;
• any previous year's figures for comparison - even though there are no items of income or expenditure for the current year;
• certain notes to the balance sheet - a full list of items to be covered appears at the end of this chapter.

What statements are needed on the balance sheet?

The following statements must appear above the director's signature:

(a) For the year ended . . . (date) the company was entitled to exemption under section 249AA(1) of the Companies Act 1985.

(b) Members have not required the company to obtain an audit in accordance with section 249B(2) of the Companies Act 1985.

(c) The directors acknowledge their responsibility for:

• ensuring the company keeps accounting records which comply with section 221; and
• preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.

If the company chooses, it may deliver the un-abbreviated accounts prepared for its members. The same statements must appear on the un-abbreviated balance sheet.

How long do I have to deliver dormant accounts to Companies House?

The same time applies as for all other accounts. The same penalties are imposed for late filing.

What happens if my company starts trading again?

Any company will cease to be exempt from audit as a dormant company if it:

• begins commercial or trading activities during the financial period; or
• would no longer qualify for some other reason.

If either of these happened, full accounts would be required for the financial year in which the company ceased to be exempt, and the directors might need to appoint auditors for the company. It may be that the company would qualify for exemptions as a medium-sized or small company.

Model balance sheets to be delivered to the Registrar of Companies by dormant companies

The formats on the following pages provide a guide to the information you need to include (unless the company has opted to prepare accounts in accordance with international accounting standards for financial years beginning on or after 1 January 2005). These formats are designed to reflect all possible assets and liabilities that a company may have but you only need to include a particular heading if there is an amount other than nil to be shown. The letters and numbers shown against the headings and sub-headings are not required to be shown in the company’s balance sheet.

There are two formats - marked A and B - either of which may be followed. The content of the two formats is identical; they simply present the balance sheet headings in a different order.

The balance sheet must balance:

• In format A, net assets must equate to the aggregate of capital and reserves.
• In format B, assets must equate to liabilities (including capital and reserves as balancing items).

Each entry must be an amount in figures (not words) or '0.00'. Companies House will not accept any document which shows 'Nil' where a figure should appear.

Each column of figures must be headed with the date on which the current and previous financial year ended.

For both formats, the matters to be included in the notes to the balance sheet, if applicable, can be found at the end of each example below.

 

DORMANT COMPANY BALANCE SHEET FORMAT A

COMPANY NO. ............................

COMPANY NAME ..........................................

BALANCE SHEET AS AT ..../..../.......

	CURRENT YEAR	PREVIOUS YEAR
A CALLED-UP SHARE CAPITAL NOT PAID	XX	XX
B FIXED ASSETS
I. Intangible assets	XX	XX
II. Tangible assets	XX	XX
III. Investments	XX	XX
	________
	XXX	XXX
C CURRENT ASSETS
I. Stocks	XX	XX
II. Debtors	XX	XX
III. Investments	XX	XX
IV. Cash at bank and in hand	XX	XX
	________
	XXX	XXX
D PREPAYMENTS AND ACCRUED INCOME	XX	XX
E CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR	(XX)	(XX)
F NET CURRENT ASSETS/ LIABILITIES	XXX	XXX
G TOTAL ASSETS LESS CURRENT LIABILITIES	XXX	XXX
H CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR	(XX)	(XX)
I PROVISION FOR LIABILITIES	(XX)	(XX)
J ACCRUALS AND DEFERRED INCOME	(XX) (XXX)	(XX) (XXX)
	________
	XXX	XXX
	________
K CAPITAL AND RESERVES
I. Called up share capital	XX	XX
II. Share premium account	XX	XX
III. Revaluation reserve	XX	XX
IV. Other reserves	XX	XX
V. Profit and loss account	XX	XX
	________
	XXX	XXX
	________

(a) For the year ended . . . (date) the company was entitled to exemption under section 249AA(1) of the Companies Act 1985.

(b) Members have not required the company to obtain an audit in accordance with section 249B(2) of the Companies Act 1985.

(c) The directors acknowledge their responsibility for:

i. ensuring the company keeps accounting records which comply with section 221; and

ii. preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.

Approved by the board of directors on...............(date)

and

signed on their behalf by......................(DIRECTOR)

 

DORMANT COMPANY BALANCE SHEET FORMAT B

COMPANY NO: ................................

COMPANY NAME: .............................................

BALANCE SHEET AS AT ../../....

	CURRENT YEAR	PREVIOUS YEAR
ASSETS
A CALLED-UP SHARE CAPITAL NOT PAID	XX	XX
B FIXED ASSETS
I. Intangible assets	XX	XX
II. Tangible assets	XX	XX
III. Investments	XX	XX
	________
	XXX	XXX
C CURRENT ASSETS
I. Stocks	XX	XX
II. Debtors	XX	XX
III. Investments	XX	XX
IV. Cash at bank and in hand	XX	XX
	________
	XXX	XXX
LIABILITIES
A CAPITAL AND RESERVES
I. Called-up share capital	XX	XX
II. Share Premium Account	XX	XX
III. Revaluation reserve	XX	XX
IV. Other reserves	XX	XX
V. Profit and loss account	XX	XX
	XXX	XXX
B ROVISION FOR LIABILITIES	XX	XX
C CREDITORS	XX	XX
D ACCRUALS AND DEFERRED INCOME	XX	XX
	________
	XXX	XXX

(a) For the year ended . . . (date) the company was entitled to exemption under section 249AA(1) of the Companies Act 1985.

(b) Members have not required the company to obtain an audit in accordance with section 249B(2) of the Companies Act 1985.

(c) The directors acknowledge their responsibility for:

• ensuring the company keeps accounting records which comply with section 221; and
• ii. preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.

Approved by the board of directors on...............(date)

and signed on their behalf by.......................(Director)

Notes to the dormant company balance sheet

The following must be given as notes to the balance sheet:

• accounting policies, including those relating to depreciation and diminution in value of assets;
• authorised share capital;
• if shares of more than one class have been allotted, the number and aggregate nominal value of shares of each class allotted;
• information relating to any redeemable shares allotted;
• information relating to any shares which have been allotted during the financial year;
• information about fixed assets;
• details of indebtedness;
• basis on which sums originally in a foreign currency have been translated into sterling;
• in respect to every item above (other than fixed assets) the corresponding amounts for the previous year;
• details of any subsidiary undertakings and of shares held in them, and why group accounts are not required;
• where the company has acted as an agent for any person, the fact that it has so acted;
• information about financial fixed assets that could have been included at fair value but which have been included in the accounts in excess of their fair value, and where no provision has been made for their diminution in value (applies to financial years beginning on or after 1 January 2005).

In addition, the following information may have to be given about the subsidiary undertakings:

• details of any undertakings in which the company has a 'significant holding', for example, the name and address of the business;
• the name of the company's ultimate parent company, and (if known) its country of incorporation;
• the names of certain intermediate parent companies, and their countries of incorporation or (if not incorporated) the addresses of their principal places of business;
• details of certain loans, guarantees and other such dealings made by the company in favour of directors and others.