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uk-financial-statements.md252 lines9.6 KB
v10United Kingdom
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1---
2name: uk-financial-statements
3description: >
4 Use this skill when preparing, reviewing, or advising on annual financial statements for a UK company. Trigger on phrases like "Companies House accounts", "FRS 102", "FRS 105", "micro-entity accounts", "small company accounts", "abbreviated accounts", "directors' report UK", "filing accounts UK", "audit exemption UK", "year-end adjustments UK", "iXBRL", "abridged accounts", or any question about preparing statutory accounts under the Companies Act 2006. Covers FRS 102/105 frameworks, size thresholds, required statements, P&L and balance sheet formats, notes, filing deadlines, and audit requirements.
5version: 1.0
6jurisdiction: GB
7category: financial-statements
8depends_on:
9 - financial-statements-workflow-base
10---
11 
12# UK Financial Statements Skill v1.0
13 
14---
15 
16## Section 1 -- Quick Reference
17 
18| Field | Value |
19|---|---|
20| Country | United Kingdom |
21| Currency | GBP |
22| Filing authority | Companies House |
23| Primary legislation | Companies Act 2006 |
24| Supporting regulations | The Small Companies and Groups (Accounts and Directors' Report) Regulations 2008; The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 |
25| Accounting standards | FRS 102 (full / Section 1A); FRS 105 (micro); UK-adopted IFRS (listed/choice) |
26| Financial year | Any period up to 18 months; usually 12 months |
27| Filing deadline | 9 months after year-end (private); 6 months (public) |
28| Late filing penalty | £150 to £1,500 (private); £750 to £7,500 (public) |
29| Digital filing | iXBRL tagging required for corporation tax; online filing via Companies House |
30 
31---
32 
33## Section 2 -- Reporting Framework
34 
35| Entity category | Applicable standard | Key features |
36|---|---|---|
37| Micro-entity | FRS 105 | Highly simplified; no notes beyond statutory minimum; no true and fair override |
38| Small entity | FRS 102 Section 1A | Simplified disclosures; abridged formats permitted |
39| Medium entity | FRS 102 (full) | Full FRS 102 disclosures; some exemptions from filing certain information |
40| Large entity | FRS 102 (full) or UK-adopted IFRS | Full disclosure requirements |
41| Listed / AIM (with IFRS) | UK-adopted IFRS | Mandatory for consolidated accounts of listed groups |
42| Qualifying subsidiary | FRS 101 | IFRS recognition/measurement with reduced disclosures |
43 
44---
45 
46## Section 3 -- Size Thresholds
47 
48Effective for accounting periods beginning on or after 6 April 2025:
49 
50| Criterion | Micro | Small | Medium |
51|---|---|---|---|
52| Turnover | ≤ £1,000,000 | ≤ £15,000,000 | ≤ £54,000,000 |
53| Balance sheet total | ≤ £500,000 | ≤ £7,500,000 | ≤ £27,000,000 |
54| Employees | ≤ 10 | ≤ 50 | ≤ 250 |
55 
56Must meet **2 out of 3** criteria in the current and preceding year. Companies exceeding "medium" thresholds are classified as large.
57 
58**Previous thresholds** (periods beginning before 6 April 2025):
59 
60| Criterion | Micro | Small | Medium |
61|---|---|---|---|
62| Turnover | ≤ £632,000 | ≤ £10,200,000 | ≤ £36,000,000 |
63| Balance sheet total | ≤ £316,000 | ≤ £5,100,000 | ≤ £18,000,000 |
64| Employees | ≤ 10 | ≤ 50 | ≤ 250 |
65 
66---
67 
68## Section 4 -- Required Financial Statements
69 
70| Document | Micro (FRS 105) | Small (s1A) | Medium/Large |
71|---|---|---|---|
72| Profit and loss account | Required (very simple) | Required (abridged option) | Required (full) |
73| Balance sheet | Required (very simple) | Required (abridged option) | Required (full) |
74| Statement of changes in equity | Not required | Not required (optional) | Required |
75| Cash flow statement | Not required | Not required | Required |
76| Notes to accounts | Statutory minimum only | Reduced disclosures | Full |
77| Directors' report | Not required (statutory presumption) | Required | Required |
78| Strategic report | Not required | Not required | Required (large only) |
79| Auditor's report | Not required | Not required (if exempt) | Required (medium with audit) |
80 
81---
82 
83## Section 5 -- Year-End Adjustments Checklist
84 
85| # | Adjustment | UK-specific notes |
86|---|---|---|
87| 1 | Depreciation | FRS 102 Section 17; useful life basis; annual review of residual value |
88| 2 | Accruals | Audit/accountancy fees, bonuses, utilities |
89| 3 | Prepayments | Insurance, rent, software licences |
90| 4 | Provisions | FRS 102 Section 21; present obligation, reliable estimate |
91| 5 | Bad debt provision | Expected credit loss model (FRS 102 Section 11 simplified) |
92| 6 | Inventory | Lower of cost and estimated selling price less costs to sell |
93| 7 | Deferred tax | FRS 102 Section 29; timing differences approach (not temporary differences) |
94| 8 | Holiday pay accrual | Required under FRS 102 — untaken leave at year-end |
95| 9 | Lease accounting | FRS 102 Section 20 (finance/operating distinction — not IFRS 16) |
96| 10 | R&D costs | Capitalise development costs meeting criteria (Section 18) or expense |
97| 11 | Government grants | Accruals model or performance model (Section 24) |
98| 12 | Director's loan account | S.455 CTA 2010 tax charge if overdrawn at year-end |
99 
100---
101 
102## Section 6 -- Profit and Loss Account Format
103 
104Companies Act 2006 Schedule 1 — Format 1 (vertical, by function) most common:
105 
106```
107Turnover
108Cost of sales
109 ─── Gross profit ───
110Distribution costs
111Administrative expenses
112Other operating income
113 ─── Operating profit ───
114Income from shares in group undertakings
115Other interest receivable and similar income
116Interest payable and similar expenses
117 ─── Profit on ordinary activities before taxation ───
118Tax on profit on ordinary activities
119 ─── Profit for the financial year ───
120```
121 
122Format 2 (by nature — alternative):
123 
124```
125Turnover
126Change in stocks of finished goods and WIP
127Own work capitalised
128Other operating income
129Raw materials and consumables
130Staff costs
131Depreciation and other amounts written off assets
132Other operating charges
133 ─── Operating profit ───
134(continue as Format 1)
135```
136 
137---
138 
139## Section 7 -- Balance Sheet Format
140 
141Companies Act 2006 Schedule 1 — Format 1 (vertical):
142 
143```
144Fixed assets
145 Intangible assets
146 Tangible assets
147 Investments
148 
149Current assets
150 Stocks
151 Debtors
152 Investments
153 Cash at bank and in hand
154 
155Creditors: amounts falling due within one year
156 ─── Net current assets ───
157 
158Total assets less current liabilities
159 
160Creditors: amounts falling due after more than one year
161Provisions for liabilities
162 ─── Net assets ───
163 
164Capital and reserves
165 Called up share capital
166 Share premium account
167 Revaluation reserve
168 Other reserves
169 Profit and loss account
170 ─── Shareholders' funds ───
171```
172 
173---
174 
175## Section 8 -- Notes to Accounts
176 
177### Minimum disclosures by entity size
178 
179| # | Disclosure | Micro (FRS 105) | Small (s1A) | Medium/Large |
180|---|---|---|---|---|
181| 1 | Accounting policies | Statutory only | Required | Full |
182| 2 | Fixed assets movements | Not required | Required | Required |
183| 3 | Financial commitments | Not required | Required | Required |
184| 4 | Guarantees/contingencies | Required (on balance sheet) | Required | Required |
185| 5 | Related party transactions | Not required | Required (s1A.12) | Required (Section 33) |
186| 6 | Employee numbers | Not required | Average number only | Full breakdown + costs |
187| 7 | Directors' remuneration | Not required | Required (total) | Required (detailed) |
188| 8 | Audit fees | Not required | Not required | Required |
189| 9 | Financial instruments | Not required | Basic only | Full (Section 11/12) |
190| 10 | Deferred tax | Not required | If material | Required (Section 29) |
191| 11 | Share capital | Not required | Required | Required |
192| 12 | Dividends | Not required | Required | Required |
193 
194---
195 
196## Section 9 -- Filing Requirements
197 
198| Item | Detail |
199|---|---|
200| Filing authority | Companies House |
201| Filing method | Online (Software filing, Companies House WebFiling, or third-party) |
202| Private company deadline | 9 months after accounting reference date |
203| Public company deadline | 6 months after accounting reference date |
204| First accounts | 21 months from incorporation (private); 18 months (public) |
205| Documents filed (small) | Abridged balance sheet + notes (P&L can be omitted from public record) |
206| Documents filed (micro) | Balance sheet only (with statutory footnotes) |
207| Documents filed (medium/large) | Full accounts + directors' report + auditor's report |
208| iXBRL | Required for corporation tax filing to HMRC (not Companies House) |
209| Language | English or Welsh |
210 
211### Late Filing Penalties (private companies)
212 
213| Delay | Penalty |
214|---|---|
215| Up to 1 month | £150 |
216| 1–3 months | £375 |
217| 3–6 months | £750 |
218| Over 6 months | £1,500 |
219 
220Public company penalties are doubled.
221 
222---
223 
224## Section 10 -- Audit Requirements
225 
226| Category | Audit requirement |
227|---|---|
228| Micro-entity | Exempt (unless part of non-small group) |
229| Small company | Exempt (same thresholds as small company classification) |
230| Medium company | Required |
231| Large company | Required |
232| Public company | Always required |
233| Charity (income > £1m) | Required |
234| Member of non-small group | Required (even if company itself is small) |
235 
236### Conditions that override small company audit exemption:
237 
238- Public company or member of group containing a public company
239- Regulated (banking, insurance, financial services)
240- Shareholders holding ≥10% request audit (s.476 CA 2006)
241- Part of an ineligible group (group exceeds small thresholds)
242 
243### Auditor qualification
244 
245Must be a Registered Auditor (member of a Recognised Supervisory Body: ICAEW, ICAS, CAI, ACCA).
246 
247---
248 
249## Disclaimer
250 
251This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
252 

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Use this skill when preparing, reviewing, or advising on annual financial statements for a UK company. Trigger on phrases like "Companies House accounts", "FRS 102", "FRS 105", "micro-entity accounts", "small company accounts", "abbreviated accounts", "directors' report UK", "filing accounts UK", "audit exemption UK", "year-end adjustments UK", "iXBRL", "abridged accounts", or any question about preparing statutory accounts under the Companies Act 2006. Covers FRS 102/105 frameworks, size thresholds, required statements, P&L and balance sheet formats, notes, filing deadlines, and audit requirements.

GBty-2025

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