Abbreviated accounts were formerly a simplified form of annual accounts that small qualifying companies could file under the Companies Act to cut costs and save time, while minimizing the disclosure of business information.
Abridged accounts are a simplified form of annual accounts allowed under the EU Accounting Directive (2014) for entities qualifying as small companies. These accounts exclude certain detailed financial information from both the balance sheet and profit and loss statement, provided this exclusion is unanimously agreed upon by shareholders.
A comprehensive report prepared by accountants that includes financial information, often required to be included in a company's prospectus as mandated by the London Stock Exchange.
The Accounting Reference Date (ARD) is the date that marks the end of a company's financial year, crucial for the preparation of annual accounts and financial statements.
Annual accounts, also known as annual financial statements, are comprehensive reports on a company's financial position and performance over a fiscal year. These accounts include the balance sheet, income statement, statement of changes in equity, and cash flow statement.
Annual accounts, also known as annual reports, are comprehensive financial statements of an organization typically published annually and required by law for incorporated bodies in the UK.
An Annual Return is a document that must be filed with the Registrar of Companies within seven months of the end of the relevant accounting period, containing key information about the company, its directors, and its financial status.
Audit exemption is the exemption from statutory audit by a registered auditor that can now be claimed by most small companies.
The balance sheet, also known as the statement of financial position, is a vital financial statement that outlines a company's total assets and liabilities at a specific point in time, providing a snapshot of its financial health.
Final Accounts are comprehensive financial statements produced at the end of a company's financial year, representing its overall financial status and performance over the period. They contrast with interim accounts produced during the financial year.
A financial report consists of a firm's financial statements that provide information about its financial performance and position over a specific period.
Forecast Reporting involves the inclusion of projected figures within a company's annual accounts and reports, such as future sales numbers, to provide an estimated vision of potential performance and growth.
Geographic segments refer to specific geographical areas, typically countries or groups of countries, where a company operates. According to International Financial Reporting Standard (IFRS) 8, companies must disclose certain financial data for each geographic segment in their financial statements.
A comprehensive look into green reporting, an environmental accounting practice where companies quantify their environmental impacts. This is a growing area in corporate reporting, reflecting heightened concerns of investors, consumers, and stakeholders. New Zealand and the EU are at the forefront with specific legislation in place.
Brief summaries of financial information often given some prominence in the annual accounts and report of a company. Highlights typically include key metrics such as sales revenue, profits, earnings per share, and dividends for the current and previous financial years.
A memorandum item in the annual accounts and report of a company giving an abbreviated restatement of the profit and loss account showing the reported profit or loss as if no revaluations had been made.
A voluntary statement appearing in the annual accounts and report of some companies in which the main financial results are given for the previous five to ten years.
Information inductance refers to the extent to which a person's behavior is affected by the information they are required to communicate. This concept highlights the potential biases in the presentation and interpretation of key financial data.
Information intermediaries are individuals and groups tasked with obtaining, analyzing, and interpreting information to inform others, often helping clients make significant financial decisions.
Generally accepted accounting principles tailored to small companies to reduce the compliance burden relative to the informational value provided to the owners.
Non-statutory accounts are financial statements issued by a company that do not form part of the statutory annual accounts required by law. These accounts are often reported in the media and are accompanied by a statement clarifying their non-statutory nature.
Understanding the primary goals that financial statements aim to achieve is crucial for determining the scope of information they should provide and the manner in which they should be presented.
The Operating and Financial Review (OFR) provides an overview where directors interpret financial statements and discuss the business's performance, covering both positive and negative aspects.
Published accounts refer to the financial statements of organizations made available to the public in accordance with legal requirements. In the UK, these often relate to limited companies and include documents provided to shareholders and filed with the Registrar of Companies at Companies House, Cardiff.
A financial statement summarizing the performance of an organization during a financial period, covering recognized gains and losses, dividend payments, and capital changes in shareholders' equity. Essential under the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
Related Party Transactions involve the transfer of assets, liabilities, or the performance of services between related parties, requiring specific disclosures and governance to ensure transparency and fairness.
Relevant accounts are those financial statements that should be used to determine the amount of distributable profit of a company. These accounts are the most recent audited annual accounts of the company, prepared in compliance with the Companies Act.
Report and accounts refer to the set of financial statements and accompanying notes that publicly traded companies are required to release annually, summarizing their financial activities and condition over the fiscal year.
A reporting accountant is responsible for providing financial information in a prospectus or reporting on small company accounts, primarily ensuring consistency with accounting records and legal provisions.
Segmental reporting entails the disclosure in annual accounts and reports of financial results of major operating and geographic segments within a diversified group of companies. This practice offers investors insight into the profitability, risk, and growth prospects for individual segments of a business.
Simplified financial statements provide a streamlined version of annual accounts, making financial information accessible to readers who may not possess extensive financial knowledge.
Stakeholders are individuals or groups with an interest in an organization, such as shareholders, employees, suppliers, customers, and members of the community. Stakeholder theory seeks to incorporate the interests of all stakeholders in business activities and decisions.
An abbreviated form of the annual accounts and report that can be sent by listed companies to their shareholders instead of the full report, given specific conditions are met.
