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
Replies (4)
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Efficient market
An efficient market cannot allow cartels and monopolies.
Why should an entity have the right to hide these activities via abb accts?
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