Abbrievated Accounts @ CH

Abbrievated Accounts @ CH

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Companies House propose the abolition of the right to file abbreviated accounts. Basically an ACCA spokesperson says that abb a/c's are not in the public interest.

Pro's & Con's of this please?
Robert Mitchell

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By ShaunSpalding
04th Oct 2001 12:26

Efficient market
An efficient market cannot allow cartels and monopolies.

Why should an entity have the right to hide these activities via abb accts?

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By ShaunSpalding
03rd Oct 2001 13:06

Freedom of information
Accounting software produces abb accts from the full accts at the touch of a button. No extra costs / fees are incurred & therefore not an issue.

The issue is entirely secrecy.

A competitor may realise you are more efficient but does he know your business processes that make you so? Does he know whether you are more or less profitable in the last 10 months?

A competitive market requires full information to be available to all parties at the same time.

A company's bankers and commonly major suppliers and credit reference agencies recive the full accounts - why give them an advantage?

The downside would perhaps be competitors using negative publicity "Don't use them, their turnover is only £150K" type stuff

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By Accounting WEB
01st Oct 2001 22:38

What use ancient accounts ?
Given the 10 month filing deadline for accounts for a private company information at Companies House can be up to 22 months old. What purpose does this serve.

if we are going to have abbreviated unaudited accounts for private companies filed at Companies house I would cut the filing deadline to 4 or 5 months from the current 10. At least the information would then be a little more up to date.

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By Accounting WEB
01st Oct 2001 23:04

I agree with graham
Graham,

I agree with you entirely. ACCA made their statement in the light of DTI's plans to abolish Audit requirement for small companies with turnover below 4.8M. ACCA realised that its members are likely to lose their main source of income so why not make companies file their full accounts. this way their members can charge a proper fee without being accused of overcharging.

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