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Accounts Requirements - Medium Sized Company/Group

I am currently carrying out the Audit of a Company (First Year Audit).  Turnvoer is over £6.5 million and employees numbers are in excess of 50.  Therefore the company is Medium Sized.  In prior year the company was below the audit threshold and turnvoer was circa £2million.  During the year, the company purchased a dormant company for £1, (simply to use that companys name on its product).  Are group/consolidated accounts required even though the subsidiary is Dormant?  Note there are no other subsidiaries.  Additionally, if group accounts are not required, do I have to make a note disclosure explaining why.

Many thanks for your comments in advance. 

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Small
If the company qualified as a small company last year it can produce small company accounts for the current year. So no need for group accounts.

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I agree with J Knight, with some qualification.

If a company is small, and the group that it heads is small, then there is no need to prepare group accounts.

However, there is a  2 year rule for size determination. If the company fails the small company criteria for two years in a row, then it is medium. It needs to meet the criteria for two consecutive years after that to become 'small' again.

Just a cautionary note really.

SA

 

 

 

 

 

 

 

 

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Group accounts not necessary

As the previous two posts state you can currently use the small company/group exemptions to avoid consolidation.

Assuming you breach the medium sized limits next year you can avoid consolidating the accounts on the basis that the dormant sub is not material to the group results and exclude it.

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