FRS102 1a - Two sets of accounts

Can both full and minimum disclosure accounts be prepared for clients?

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Like many accountancy practices, we have always filed the minimum disclosure abbreviated accounts with Companies House.  Under FRS102 1a however, we are required to file at Companies House what is prepared for the shareholders. 

Some clients are already asking us to continue filing the minimum required at Companies House, which is fine subject to the true and fair requirements, but some also want the more detail notes the old full accounts version used to provide for themselves, or for the bank, etc.

Given the requirement under FRS102 1a to file what is prepared for the shareholders, is it ok to prepare both minimum disclosure and more detailed accounts for the shareholder, then still file the minimum disclosure version?

Replies (13)

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RLI
By lionofludesch
16th Feb 2017 09:30

Mmmm - sort of, depending what you mean.

Haven't we always added extra pages in for directors ? Detailed trading account, whatever else they ask for.

You can still do that. And you can distribute that to whosoever the company likes.

I have a client where I prepared some FRS 105 accounts with a detailed balance sheet and detailed trading schedules included as extra pages marked "Not part of the statutory accounts". Only the FRS 105 balance sheet was filed at CoHo.

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By Tim Vane
16th Feb 2017 09:30

The accounts submitted to Companies House must be the same set of full or abridged annual accounts approved by the board. You are however allowed to fillet those accounts when submitting to Companies House.

There is nothing to stop you from producing management accounts as a separate exercise.

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Mike Cooper HJS
By mike_uk_1983
16th Feb 2017 11:34

I agree with Tim. A limited company can only have one set of statutory financial statements. These will either be full or abridged.

However when filing at Companies House you can fillet these (remove directors report, profit & loss and audit report when audited plus corresponding notes).

What you cant do is full set for the directors/shareholders and then abridged for Companies House.

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Replying to mike_uk_1983:
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By CA-London
16th Feb 2017 13:42

mike_uk_1983 wrote:

I agree with Tim. A limited company can only have one set of statutory financial statements. These will either be full or abridged.

However when filing at Companies House you can fillet these (remove directors report, profit & loss and audit report when audited plus corresponding notes).

What you cant do is full set for the directors/shareholders and then abridged for Companies House.

Not sure i agree.
Do a full set to discuss with client, and review in detail etc.
Then an abridged balance sheet for companies house submission.
Company directors sign both anyway.

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Replying to CA-London:
RLI
By lionofludesch
16th Feb 2017 14:05

CA-London wrote:

Do a full set to discuss with client, and review in detail etc.
Then an abridged balance sheet for companies house submission.
Company directors sign both anyway.

You can't do this any more.

If you submit abridged accounts to Co Ho, they're the company's accounts for all purposes.

Of course you can add management information but that's not part of the accounts.

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Replying to CA-London:
Mike Cooper HJS
By mike_uk_1983
16th Feb 2017 14:05

I disagree with this.

Having spoken with ICEAW, read the Companies Act and been on various training courses on FRS 102 you can have only ONE set of statutory accounts and FRS 102 says what is given to directors is the same as filed. This is a choice between either full or abridged.

If you want to use abridged you need to get 100% shareholder written agreement for this.

The option to file filleted is then a Companies Act option and not related to FRS 102.

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Replying to mike_uk_1983:
RLI
By lionofludesch
16th Feb 2017 14:20

What it boils down to is, if ANY shareholder wants full accounts, that's what have to be filed at CoHo.

In practice, only shareholders who are not directors are likely to be a problem. Directors will have access to whatever detail they want anyway.

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By DMGbus
16th Feb 2017 13:42

Under the new regime there will be filleted / abridged accounts for Companies House drawn up from compliant accounts. These latter FRS102 compliant accounts, as you quite correctly observe, may be inadequate for your clients needs.

To cope with this I will be producing sensible / meaningful management accounts (with no statutory references) for clients from which the FRS102 minimum compliant version (showing the same figures but in statutory format) will follow.

That way the client gets what they want as do HMRC and Companies House.

" Dear client here are your finalised accounts as discussed, firstly the sensible and easy to understand management accounts version and secondly the statutory FRS102 version required by law..."

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Replying to DMGbus:
RLI
By lionofludesch
16th Feb 2017 14:06

Sensible idea.

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Mike Cooper HJS
By mike_uk_1983
16th Feb 2017 14:12

I think there is some confusion here about FRS 102.

If a company is small and following FRS 102 1a then they can prepare either full accounts or abridged. It is one or the other. Abridged accounts still include a profit and loss account but it starts from gross profit. (in my opinion useless to anyone)

Then when it comes to filing it has to use the same set given to members when it files. So the starting point is full or abridged. However under Companies Act there is an option to fillet these accounts and remove directors report, audit report and P&L.

https://www.accountingweb.co.uk/business/finance-strategy/big-changes-to...

The articles linked will explain in more detail.

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By pright
16th Feb 2017 16:43

But then what will HMRC accept with the corporation tax return-filletted, full, abridged, micro?

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Replying to pright:
RLI
By lionofludesch
16th Feb 2017 16:54

In theory, it seems they are only entitled to the same accounts as Co Ho.

In practice, they can always launch an enquiry. I'm not sure that's what I want.

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Replying to pright:
Mike Cooper HJS
By mike_uk_1983
16th Feb 2017 16:56

Filleted are only a Companies House filing option so wont be accepted by HMRC just as abbreviated wont be. All the others will be.

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