There is no requirement to include a directors' report in the abbreviated accounts of a small company to be filed with the Registrar. Therefore does it follow that that no disclosure is required of the directors' interests in the shares of the company?
Paul
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Paul
Make it simple, I would suggest:
Transaction with directors
Included in consultancy fees is £x,xxx (2003 - £ x,xxx) paid to Co A , a company in which Mr.XXX is a director (and shareholder). The balance owed to that company as at balance sheet date £x,xxx (2003 - £x,xxx).
Abbreviated accounts disclosure
Alex, I should have added to my last comment that the fee-paying services are provided to company A under the terms of a consultancy agreement between company A, company B and the director concerned.
Abbreviated Accounts Disclosure
Thanks Alex for your help.
The nature of the transactions is that company B provides fee paying services on credit to company A. Could you advise on how this disclosure might be worded?
Abbreviated accounts disclosure
Paul,
Disclsure is required according to your info, as follow.
Company A – to disclose:
1.“Transaction with director” not in “related party transaction”, the transaction between co A & co B in which is interested only by virtue of his directorship in both companies.
2.The ultimate parent company.
Company B – to disclose:
1.Holdings more than 20% participating interest, the name, country of incorporation, no of shares held, the company’s capital reserve and P&L for the year.
2.Transaction with director.
3.The ultimate parent company (if one).
Hope this helps
related party
Rob - agreed FRS8 transactions need not be disclosed but this does not exempt Companies Act requirement to disclose transactions with directors which is what I meant.
Abdul
Clarification please - related party transactions
Thanks Rob and Abdul for your comments.
Could you therefore please confirm whether it is required to disclose in the abbreviated accounts of company A the transactions with company B, which is controlled by a director of company A, where company B holds 20% of the shares in company A?
Thats correct. Just Balance Sheet and notes are required. Obviously disclosure of transactions with directors would still be required in the notes.
Rgs
Abdul
Related party transactions
There is no requirement to include details of related party transactions in the abbreviated accounts.