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Excluded from small company regime?

Excluded from small company regime?

A UK Ltd trading company with a year end of 31st Dec 2015 is a 100% subsidiary of a US parent company. The US parent is a company listed and traded on the NYSE.

The UK subsidiary will qualify as small under the new thresholds coming into effect in 2016 (10.2m t/over 5.1 m b/s etc.) and could adopt these new thresholds early and be considered a 'small company' for the 31st Dec 2015 year end.

The Question

Can the UK subsidiary prepare its 31st Dec 15 accounts under FRS 102 - 1A (for small cos)?

Or is it forced to use full FRS 102 because it's a member of an 'ineligible group' (due to the US parent being a traded PLC)?

Any help here would be appreciated. I cannot find a 100% conclusive answer to whether the UK sub would be in an ineligible group and hence excluded from the small companies regime because its parent is a US listed company. I understand that if it's excluded from the small company regime it must have an audit.

Any reference to legislation would also be appreciated.

Many thanks


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28th Feb 2016 21:22

I am pretty sure (without quoting legislation) that the entity will be required to use full FRS102 and will need an audit.

Have you got Checker? Run it through that (though these days I find Checker to be less and less helpful than it used to be).

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