Following recent consultation, the accounting thresholds for small and medium sized companies are expected to change, applying to financial years beginning on or after 1 January 2016.
Gone will be the option to file abbreviated accounts but instead, companies will be able to file ‘abridged accounts’, subject to shareholder approval. Small companies can still choose not to file their profit and loss account and/or directors’ report.
The accounting thresholds are set to increase as follows:
Small company and group Medium-sized company and group
Net turnover £10.2m (currently £6.5m) £36m (currently £25.9m)
Balance sheet total £5.1m (currently £3.26m) £18m (currently £12.9m)
Employees 50 250
A separate consultation is underway to determine if the small company audit exemption limits should be increased in line with the above accounting thresholds.
For help understanding your accounting and audit requirements and how the above changes affect you, please contact Curo’s audit partner, Anna Madden on [email protected] or call Anna on 01527 558539.