Abbreviated Accounts for Companies House

Discussion in 'Accounts & Finance' started by Richard, Jan 28, 2009.

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  1. Richard

    Richard UKBF Contributor Free Member

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    I'm in the process of completing the online submission of the abbreviated accounts to Companies House and I have noticed that the Companies House template has been updated compared to last year in that there is now a choice of Accounting policies:

    1. The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standards for Smaller Entities effective June 2002.

    2. The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standards for Smaller Entities effective January 2005.

    I would be interested to know, what are the significant differences between the two 'standards'?
     
    Last edited: Jan 28, 2009
    Posted: Jan 28, 2009 By: Richard Member since: Mar 16, 2003
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  2. Zeno

    Zeno UKBF Newcomer Free Member

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    That you would actually be interested in knowing? Not a lot...
     
    Posted: Jan 28, 2009 By: Zeno Member since: Jun 12, 2008
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  3. David Griffiths

    David Griffiths UKBF Legend Full Member - Verified Business

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    You just tick the box according to which of the two standards you have complied with.

    There isn't a box to tick to say that you haven't complied with any accounting standards. ;)

    Here's the 2007 FRSSE so that you can check that you've done things properly. Took 0.57 second on Google, so shouldn't take you too long to find the 2005 version to complete your comparison.
     
    Last edited: Jan 28, 2009
    Posted: Jan 28, 2009 By: David Griffiths Member since: Jun 21, 2008
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  4. Richard

    Richard UKBF Contributor Free Member

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    ... is to generate some debate about how some of the other questions might be answered.

    For instance, amongst the additional questions being asked this year compared to last year is:

    'Related Party Disclosures'

    Some accountants have suggested to me that the accounts provided to Companies House have little value in determining anything about the health of a company.

    Nevertheless, a person preparing answers to the questions asked could use this as an opportunity to communicate something of value.

    It might be interesting to consider including something on the balance sheet under intangible assets. :)
     
    Posted: Jan 28, 2009 By: Richard Member since: Mar 16, 2003
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  5. Jenni384

    Jenni384 UKBF Big Shot Full Member

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    Why would you do that? Why would you want to communicate something of value? The point of being entitled to file abbreviated accounts is to allow the small company some privacy.
    If you want to communicate what you actually did, you of course are entitled to file the full accounts at Co House, which have to be prepared anyway to be submitted with the CT600.

    But again, why would you? :)
     
    Posted: Jan 28, 2009 By: Jenni384 Member since: Oct 1, 2007
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  6. elainec100@cheapaccounting

    [email protected] UKBF Newcomer Full Member

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    can't say I care much - have to do these so just need to get on with it really. :)
     
    Posted: Jan 28, 2009 By: [email protected] Member since: Nov 4, 2005
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  7. Richard

    Richard UKBF Contributor Free Member

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    Just provide the bare minimum!

    I was just curious as to why some new questions had appeared on the Companies House template compared to last year.
     
    Posted: Jan 28, 2009 By: Richard Member since: Mar 16, 2003
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  8. elainec100@cheapaccounting

    [email protected] UKBF Newcomer Full Member

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    new companies act 2006
     
    Posted: Jan 28, 2009 By: [email protected] Member since: Nov 4, 2005
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  9. Richard

    Richard UKBF Contributor Free Member

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    Have you ever known Companies House to reject Abbreviated Accounts?

    They do say that they'll let you know within 5 days whether the documents have been accepted or rejected! :|
     
    Posted: Jan 28, 2009 By: Richard Member since: Mar 16, 2003
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  10. Jenni384

    Jenni384 UKBF Big Shot Full Member

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    They've never rejected any I've submitted.

    I guess if you sent in a page saying simply "I made a loss, mate" they might be rejected...! :p

    Yes I have heard of DIY accounts being rejected because they don't conform to the accounting standards.
     
    Posted: Jan 28, 2009 By: Jenni384 Member since: Oct 1, 2007
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  11. Tom McClelland

    Tom McClelland UKBF Ace Full Member

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    Be aware that if by dint of heroic efforts you can produce an acceptable set of abbreviated accounts you still need to do a full set of accounts to send in with your CT600. The full accounts are not for amateurs, and even less so the CT600 in my opinion. Since you'll need an accountant to produce those, and they can do abbreviated accounts as a side-effect of the full accounts with almost zero extra work... I guess you can see where I'm going with this...
     
    Posted: Jan 28, 2009 By: Tom McClelland Member since: Feb 10, 2008
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  12. Richard

    Richard UKBF Contributor Free Member

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    You made me laugh, Jenni..... :D :D
     
    Posted: Jan 28, 2009 By: Richard Member since: Mar 16, 2003
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  13. Jenni384

    Jenni384 UKBF Big Shot Full Member

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    Very succinctly put, thanks Tom :D

    Good good, Farrant Frost, we aren't just a bunch of number crunchers :D
     
    Posted: Jan 28, 2009 By: Jenni384 Member since: Oct 1, 2007
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  14. elainec100@cheapaccounting

    [email protected] UKBF Newcomer Full Member

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    yes and then the client comes to an accountant to sort out the mess and you find that the accounts don't balance, they haven't recorded everything, they are not in the right format, there is no CT 600 and no CT in the accounts etc etc etc

    :rolleyes::D
     
    Posted: Jan 28, 2009 By: [email protected] Member since: Nov 4, 2005
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  15. Richard

    Richard UKBF Contributor Free Member

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    Thanks for the levity!! :D :D

    I prefer not to use an accountant for basic form filling. I wouldn't expect to sign anything which I couldn't understand! :cool:

    The reason for posting this thread was to discover if there was anybody here who had noticed the additional questions asked on the Companies House Abbreviated Accounts template compared to last year.

    I answered the questions as best and as briefly as I could and Companies House took just 23 minutes to confirm their satisfaction which is about the same length of time as last year!! ;)
     
    Posted: Jan 28, 2009 By: Richard Member since: Mar 16, 2003
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  16. elainec100@cheapaccounting

    [email protected] UKBF Newcomer Full Member

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    That's great - well done.

    Did HMRC also accept your CT600 plus full accounts

    In the defence of accountants I would like to say that the abbreviated accounts are abbreviated from the full accounts which together with the CT600 are required by HMRC - a bit more than form filling is involved with these.

    Most accountants I know will explain things to a client to ensure that they do not sign anything they do not or do not want to understand.

    Good luck though - sounds like you have got this sussed.
     
    Last edited: Jan 28, 2009
    Posted: Jan 28, 2009 By: [email protected] Member since: Nov 4, 2005
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  17. David Griffiths

    David Griffiths UKBF Legend Full Member - Verified Business

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    I take it that you filed on line and Companies House sent you two emails, the second of which confirmed that the submission had been accepted and would be placed on the record. That's some way short of "confirming satisfaction" - it just means that the form has been filled in with no obvious errors. They have no way of knowing if the accounts themselves are correct, or in most cases if the form has been filled in correctly. I don't think that they even cross check the accounts with the annual return to see if the share capital ties up.

    Like Elaine, I've seen plenty of accounts rejected by Companies House, and I've also seen quite a few that have been accepted that are glaringly incorrect.

    Don't misunderstand me; it's of no consequence to me whether you use an accountant or not. If you can get the figures accepted, excellent. They don't need to be right - and in the great majority of self prepared accounts that I've seen, they aren't.
     
    Posted: Jan 28, 2009 By: David Griffiths Member since: Jun 21, 2008
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  18. Richard

    Richard UKBF Contributor Free Member

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    deleted post
     
    Last edited: Jan 29, 2009
    Posted: Jan 29, 2009 By: Richard Member since: Mar 16, 2003
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  19. Richard

    Richard UKBF Contributor Free Member

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    Maybe David but it does demonstrate that I've complied with the legislation and that the Companies House accounting history for this particular company is complete up to 31 March 2008.

    Could it not be argued that the Abbreviated Accounts at Companies House is the first place where a company is required to indicate publicly the extent of their trading activity during the period in question?
     
    Posted: Jan 29, 2009 By: Richard Member since: Mar 16, 2003
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  20. elainec100@cheapaccounting

    [email protected] UKBF Newcomer Full Member

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    It is the only public place for private companies
     
    Posted: Jan 29, 2009 By: [email protected] Member since: Nov 4, 2005
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