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There are some changes relating to financial information and filing requirements which will coming into force once the legislation has been introduced.
The areas the Government intends to legislate for are as follows:
- Amending the Companies Act to clarify the requirement for a company to prepare and deliver one set of accounts.
- Limiting the number of times a company can shorten its accounting reference period (ARP) to align with the restrictions around extending its ARP.
- Small companies will no longer have the option to prepare and file abridged accounts and will be required to file both their profit and loss account and directors’ report ie, the option to file "filleted" accounts will be removed.
- Micro-entities will also be required to file their profit and loss account but will continue to have the option to not prepare or file a directors’ report.
- Company accounts will be required to be filed in a digital format using iXBRL (Inline Extensible Business Reporting Language) and also to be fully tagged.
- Dormant companies will be required to file an eligibility statement. The changes to the filing requirements for small companies outlined above will enable their eligibility to be checked.
- Up-front validation of accounts will be increased. New querying powers granted to the Registrar will enable more investigations to be carried out when cases are bought to her attention.
- Options to enable companies to file financial information once a year with Government will be explored although there are no firm plans in this regard at this time.
- Time periods allowed for filing accounts will not be reduced at this time. However, legislation will be introduced to facilitate future changes.
We don’t know at the moment when these changes are likely to be implemented.
If you have any questions about the above, please get in touch with your local Moore advisor.