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Law on filing false accounts

Discussion in 'Accounts & Finance' started by adam1985, Jun 28, 2010.

  1. David Griffiths

    David Griffiths UKBF Regular Moderator

    Posts: 9,951 Likes: 3,159
    I think that Companies House is pretty good actually. Their systems are a lot more reliable, and once we can file accounts using XiBRL (or whatever) and avoid their dreadful abbreviated accounts package) then they will be even better

    The main whinge that people have about Companies House is their strict imposition of penalties - even though they are warned about this before the due date. I have no sympathy at all.
  2. Zeno

    Zeno UKBF Regular Free Member

    Posts: 4,508 Likes: 1,223
    We had it slightly worse up here for a while due to the differing implementation dates for charities using the CA 2006. Many sets of accounts prepared properly were rejected & presumably vica versa sometimes with fines flying about accordingly.

    This is no longer an issue with things now running fairly smoothly although I have mixed feelings about XiBRL (?).

    Of course, up here we also have OSCR which is as much use aas tits on a bull - they mainly confine themselves to Companies House like trivialities on the format of the accounts but have not yet taken to fines. Doubtless The Charities Commision is much the same.
  3. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Regular Full Member

    Posts: 13,271 Likes: 2,870
    But what value do they add?

    They check you have filed accounts (and they are vaguely in correct format)

    They do not check quality, accuracy of accounts e.g. if balance sheet adds up and balances and we have all seen examples of where it doesn't.

    They chase for late filing and strike off cos that have not filed an annual return.

    So - good administrators really :|:|

    What else do they do?
  4. Philip Hoyle

    Philip Hoyle UKBF Regular Free Member

    Posts: 1,936 Likes: 985
    Back to the OP's situation, my first thought is whether there are actually two companies/businesses here, perhaps with a very similar name, whereby maybe one company is a holding company of the other which is the trading company? To me, it sounds like the two different versions of the "same" accounts are just far too different - fair enough the loan account being written off in the final version, but that wouldn't affect the cash/bank balances which IIRC were also materially different.

    I know I've been caught out like this a few times when trying to review company accounts on behalf of clients - sometimes you have to wade through several different companies to trace the group structure and work out the true status of the "group" and check the viability/security etc of the company that the proposed transactions will actually go through.

    I'd suggest the OP first checks the company name again to make sure it is absolutely identical on both sets of accounts and then have a good read of the directors report and notes to the accounts to try to spot any group structure, related companies, etc. that may provide a valid reason for the apparent differences.
  5. David Griffiths

    David Griffiths UKBF Regular Moderator

    Posts: 9,951 Likes: 3,159
    They don't. But they aren't there to add value - they just administer a necessary evil of filing accounts and returns.

    Given that it has to be done, their systems are streets ahead of the Revenue. Much less complex almost certainly but much more reliable.
  6. Zeno

    Zeno UKBF Regular Free Member

    Posts: 4,508 Likes: 1,223
    And to fee for the privilege of filing your annual return, don't forget that.

    I wonder how long before HMRC realise they could charge fees for the filing of tax returns? Better not give them ideas...
  7. yorkshirejames

    yorkshirejames UKBF Regular Free Member

    Posts: 2,555 Likes: 351
    I was wondering whether this was the difference that the OP was seeing, that one set were the full accounts and the other set were the abbreviated ones? Granted, there seems to be so many differences that it probably isn't this, but I just wondered.