Where abouts in the accounts would you disclose the requirements under Section 401 Co Act 2006 for exemption from preparing group accounts as the company is a subsidiary of a larger company?? Is it in directors report, accounting policy under basis of preparation?
Any examples of the correct disclosures would be very much appreciated, and does it also have to go into the audit report confirming agreement that the company is entitled to the exemption?
Thanks
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The disclosure would normally go in the accounting policies and you may also wish to make a note in the investments and/or controlling party notes as well. As for the disclosure try something like this in accounting policies: The company was, at the end of the year, a wholly-owned subsidiary of another company incorporated outside the EEA and in accordance with Section 401 of the Companies Act 2006, is not required to produce, and has not published, consolidated accounts.
You will need to file the consolidated accounts of the parent company with your accounts in order to take the s401 exemption.
John,
In reality, I have seen companies claiming this exemption but have not seen them submitting the set of consolidated accounts of the parent company with Companies House.
Is this normal? Or does Companies House not make this available?
Hi RC6118. If you regularly read the AWeb forums you will come to realise that Companies House take a scattergun approach to regulation. They either wilfully or mistakenly ignore some or all the regulations regarding accounts filing, but there are some who apply the rules properly. So like HMRC when you file something you have to chance your hand on the desk lottery and hope you get someone good/bad depending on your preference!