Abbreviated Accounts

Abbreviated Accounts

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It is my understanding that the FRSSE does not apply to Abbreviated Accounts, but rather the disclosures are only those required by the Company's Act.

If this is the case, does the principle of materiality still apply and in the same way as in FRSSE accounts? In particular I am thinking of a Director's loan account overdrawn by a small amount for a short period during the year. (I appreciate that the DR amount will need to be declared on the CT return).

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By johngroganjga
21st Apr 2014 20:04

The full accounts come first of course. The abbreviated accounts are just that - an abbreviated version of the full accounts. So what is immaterial in the full accounts must also, by definition, be immaterial for the purposes of the abbreviated accounts. Or, to put it another way, if you are satisfied that the overdrawn loan account does not need to be disclosed in the full accounts it cannot require disclosure in the abbreviated accounts.

You do not ask for advice about the circumstances in which an overdrawn loan account need not be disclosed on grounds of materiality. So I have given none.

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By agburton
21st Apr 2014 20:14

Thanks, John. I can't leave the last paragraph hanging! What would be your advice about materiality of an overdrawn Director's loan account ?

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By johngroganjga
21st Apr 2014 20:23

I would look at it in terms of triviality rather than materiality. As you say it will be disclosed on the CT return even if not in the accounts it sounds as if you regard it as not insignificant. What was the maximum overdrawn balance?

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By agburton
21st Apr 2014 21:58

John - I'm not sure I'm familiar with triviality. The overdrawn amount was just under £100 and it was for six weeks. Turnover was £15k.

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By johngroganjga
22nd Apr 2014 07:50

In that case I would disclose it.

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