There are two issues here. The subsidiary will need an audit for the whole year if it was a member of a group (that needed an audit) for part of the year. It doesn't get out of an audit just because it left the group part way through the year and would have been exempt had it not been a member of that group to start with.
It will be down to the directors or members of the company to appoint whoever it wants but clearly it has to be a registered auditor.
The parent company will need to have audited figures up to the date of sale that it can consolidate. The parent can ask the current auditors to do some of that work or it could ask its own auditors. Usually the SPA will make provision for this and may very well have had a requirement for completion accounts that may or may not have needed some audit work on them.
The joint SORP making body produced two versions of SORP 2015, the FRSSE SORP and the FRS 102 SORP. When they produced the FRSSE SORP they realised it was likely to only have a shelf life of one year. So yes for the year ended 5 April 2016, the charity can adopt SORP 2015 (FRSSE) but for next year they will HAVE to adopt SORP 2015 (FRS 102), this means making changes in two consecutive years. On that basis my approach has been to adopt the FRS 102 SORP straight away.
Actually there are six tackles in rugby league, so more than one hand is required, and unfortunately a certain french referee has miscounted this twice in the last year allowing a team to play a seventh tackle.
As for the laws of Union, well they are just made up as they go along, neither the fans, players or referees know what they are!
Agree that you cannot file dormant accounts if there was trading in the comparative figures, but once the accounts have no activity in the current and comparative period then dormant accounts can be filed.
This arose with me a number of years ago. There is no such thing as abbreviated consolidated accounts. You either file full consolidated accounts or abbreviated accounts of the parent undertaking as a single entity with all the relevant notes about exemption from consolidated.
I think you will find that if the working papers are for bookkeeping, accounting, tax returns, or VAT returns, then in general any working papers actually belong to the client and he can insist that they are handed over.
As with anything there are exceptions to this, particularly with regard to audit work.
I am really quite shocked that alot of you outsource your payroll work, but I am guessing that you are relatively small practices. We find payroll to be hugely profitable (recovery rate at or even above 100%) even doing payrolls for several hundred people with regular variable items hours, overtime, SMP, SSP etc. We have a separate payroll team who can deal with the regular queries as they come up as they constantly deal with such queries.
We believe we are competitive against external bureau's and clients like the fact that they don't have to bother with it themselves. They are given strict timetables as to when information is due by in order for the payroll to be processed in time for their payment dates.
As Peter mentions if a re-run is needed because of missing or incorrect information, an additional charge is made.
I had the same thing. One of my partners had received two rejection letters on the same day and thought it was a problem with our system, yet Companies House had accepted tens if not a hundred with the same statement previously.
I am in contact with one of the Customer Care Managers at Companies House as I attend one of their focus group meetings.On sending the reports to him he confirmed they should not have been rejected and they were going to do some internal training. Obviously they haven't done this yet!!
Surely it is not possible to regularly change the same company's year end. I thought you could do it once in five years unless there was a good reason e.g. joining a group.
Regarding the bank's position, they will be monitoring ins and outs of the bank and so if the cashflow is worsening they will be aware of it. Other factors need to be taken account of such as when does the renewal of the facility take place; are there any requirements within the agreement for the production of accounts within a certain timescale. Breaking borrowing covenants at the current time is not a good idea, even for thinks like not filing year end accounts within the time agreed, it just gives the bank excuse to renegotiate the deal and this means further fees and increased rates of interest.
My answers
There are two issues here. The subsidiary will need an audit for the whole year if it was a member of a group (that needed an audit) for part of the year. It doesn't get out of an audit just because it left the group part way through the year and would have been exempt had it not been a member of that group to start with.
It will be down to the directors or members of the company to appoint whoever it wants but clearly it has to be a registered auditor.
The parent company will need to have audited figures up to the date of sale that it can consolidate. The parent can ask the current auditors to do some of that work or it could ask its own auditors. Usually the SPA will make provision for this and may very well have had a requirement for completion accounts that may or may not have needed some audit work on them.
The joint SORP making body produced two versions of SORP 2015, the FRSSE SORP and the FRS 102 SORP. When they produced the FRSSE SORP they realised it was likely to only have a shelf life of one year. So yes for the year ended 5 April 2016, the charity can adopt SORP 2015 (FRSSE) but for next year they will HAVE to adopt SORP 2015 (FRS 102), this means making changes in two consecutive years. On that basis my approach has been to adopt the FRS 102 SORP straight away.
Actually there are six tackles in rugby league, so more than one hand is required, and unfortunately a certain french referee has miscounted this twice in the last year allowing a team to play a seventh tackle.
As for the laws of Union, well they are just made up as they go along, neither the fans, players or referees know what they are!
Past trading not relevant
Agree that you cannot file dormant accounts if there was trading in the comparative figures, but once the accounts have no activity in the current and comparative period then dormant accounts can be filed.
No such thing
This arose with me a number of years ago. There is no such thing as abbreviated consolidated accounts. You either file full consolidated accounts or abbreviated accounts of the parent undertaking as a single entity with all the relevant notes about exemption from consolidated.
Who owns working papers ?
I think you will find that if the working papers are for bookkeeping, accounting, tax returns, or VAT returns, then in general any working papers actually belong to the client and he can insist that they are handed over.
As with anything there are exceptions to this, particularly with regard to audit work.
Just found this
http://www.accaglobal.com/content/dam/acca/global/PDF-members/2012/34352...
which explains the position.
Shocked
I am really quite shocked that alot of you outsource your payroll work, but I am guessing that you are relatively small practices. We find payroll to be hugely profitable (recovery rate at or even above 100%) even doing payrolls for several hundred people with regular variable items hours, overtime, SMP, SSP etc. We have a separate payroll team who can deal with the regular queries as they come up as they constantly deal with such queries.
We believe we are competitive against external bureau's and clients like the fact that they don't have to bother with it themselves. They are given strict timetables as to when information is due by in order for the payroll to be processed in time for their payment dates.
As Peter mentions if a re-run is needed because of missing or incorrect information, an additional charge is made.
I had the same thing. One of my partners had received two rejection letters on the same day and thought it was a problem with our system, yet Companies House had accepted tens if not a hundred with the same statement previously.
I am in contact with one of the Customer Care Managers at Companies House as I attend one of their focus group meetings.On sending the reports to him he confirmed they should not have been rejected and they were going to do some internal training. Obviously they haven't done this yet!!
Bank's position
Surely it is not possible to regularly change the same company's year end. I thought you could do it once in five years unless there was a good reason e.g. joining a group.
Regarding the bank's position, they will be monitoring ins and outs of the bank and so if the cashflow is worsening they will be aware of it. Other factors need to be taken account of such as when does the renewal of the facility take place; are there any requirements within the agreement for the production of accounts within a certain timescale. Breaking borrowing covenants at the current time is not a good idea, even for thinks like not filing year end accounts within the time agreed, it just gives the bank excuse to renegotiate the deal and this means further fees and increased rates of interest.
Compilation Report or Assurance report
Possibly in some cases the bad debt ones, but we certainly wouldn't have picked up stock costing issues if we hadn't have done an audit.