If you have a company,
essentially the accounts you are required to file with the Commercial Register
(equivalent to Company House in the UK) depend on which category your company
comes under. There are 3 different versions for annual accounts purposes: The version for small to medium-sized
companies, the abbreviated version and the normal version. Here we will just
deal with the requirements for the first version.
The annual accounts that you need
to file for a small to medium-sized company include the following: a balance
sheet, an income statement or profit and loss account (as it is known in the
United Kingdom), a report on changes in the shareholders' equity and notes. The
later provides details on such things as the registration details and main
activities of the company, accounting principles applied, depreciation
methodology used and details of depreciation carried out during the year on
different assets tangible and intangible, distribution of results, specific
details regarding payments to directors and employees, information on
environmental issues,and any other relevant issues that could be considered of
important to the shareholders. You will also have to include a certificate
signed by the directors approving the accounts and the distribution of profits
if any. These reports must be drawn up with clarity, and must present a true
and fair view of the net worth, financial position and results of operations of
the company.
The balance sheet and income
statement should be in the same format from one accounting period to the next,
although, in exceptional cases, the format may be changed, but the fact must be
indicated in the notes together with the reasons why. Captions in the standard
form of accounts may be subdivided, or grouped and the analysis presented in
the notes, provided that the overall format is followed and the main headings
are disclosed. Comparative figures from the preceding year must be presented.
Prior year figures must be restated to conform with the current year
presentation. However, there is no requirement to present comparative figures
in the notes. Few firms include the cash flow statement in the annual report
although, many companies have one that is used by internal management.
If you are in Nuneaton or Rugby and looking for annual accounts, accountancy or accountants,
you may consider the required company for their services. If you have any
related queries, do call their office today.
