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.
Abbreviated accounts, formerly known as modified accounts, are simplified financial statements that small companies in certain jurisdictions can file instead of full statutory accounts.
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.
The Accounting Directive (2014/95/EU) aims to simplify the disclosure requirements for small companies, notably through the introduction of abridged accounts, and includes special rules for micro-entities. The directive was incorporated into UK law in 2015 and applies to financial periods beginning on or after 1 January 2016.
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange that gives smaller companies the opportunity to raise capital and gain visibility among investors.
Audit exemption is the exemption from statutory audit by a registered auditor that can now be claimed by most small companies.
The Enterprise Investment Scheme (EIS) is a UK government initiative designed to help smaller, higher-risk companies raise finance by offering tax relief to investors who purchase new shares in those companies.
An approved share option scheme designed to help small high-risk unlisted companies attract and retain key employees.
The Financial Reporting Standard for Smaller Entities (FRSSE) was a former accounting standard by the Accounting Standards Board (ASB). It provided simplified financial reporting requirements for small entities.
Generally accepted accounting principles tailored to small companies to reduce the compliance burden relative to the informational value provided to the owners.
Penny stocks are securities trading at a low price, generally less than $5 per share, and are issued by small companies with short or erratic revenue and earnings histories, often traded over-the-counter.
Plow back refers to the practice of reinvesting a company's earnings back into the business rather than distributing those profits as dividends to shareholders. Typically employed by smaller, fast-growing companies, plow back is a strategy aimed at fueling further growth and expansion.
A statutory audit is an examination of a company’s financial statements and records, as mandated by regulatory bodies to ensure fairness and accuracy.
Unlisted securities, also known as unquoted securities, are typically issued by companies not listed on an official stock exchange. These securities often present higher risks due to less stringent compliance requirements compared to listed securities.
