[F1Small and medium‐sized companies and groups]F44N.I.
F44Order repealed (prosp.) by Companies Act 2006 (c. 46), ss. 1284(2), 1295, 1300(2), Sch. 16 and the repeal being partly in force, as to which see individual Articles (with savings (with adaptations) by Companies Act 2006 (Commencement No. 6, Saving and Commencement Nos. 3 and 5 (Amendment)) Order 2008 (S.I. 2008/674), arts. 2(3), {4}, Sch. 2) and subject to amendments (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b)(2), Sch. 1 paras. 135, 147, 148 {Sch. 2 Note 1} (with arts. 6, 11, 12) and subject to amendments (6.4.2008) by S.R. 2008/133, {regs. 2, 3}
[F2Special provisions for small companiesN.I.
254 .F3—(1) Subject to Article 255A, this Article applies where a company qualifies as a small company in relation to a financial year.
(2) If the company's individual accounts for the year[F4 are Companies Order individual accounts and]
(a)comply with the provisions of Schedule 8, or
(b)fail to comply with those provisions only in so far as they comply instead with one or more corresponding provisions of Schedule 4,
they need not comply with the provisions or, as the case may be, the remaining provisions of Schedule 4; and where advantage is taken of this paragraph, references in[F4 Article 234A] to compliance with the provisions of Schedule 4 shall be construed accordingly.
[F5(3) The company's individual accounts for the year—
(a)may give the total of the aggregates required by heads (a), (c) and (d) of paragraph 1(1) of Schedule 6 (emoluments and other benefits etc. of directors) instead of giving those aggregates individually; and
(b)need not give the information required by—
[F6(ai)Article 239A (disclosure required in notes to annual accounts: particulars of staff);]
(i)paragraph 4 of Schedule 5 (financial years of subsidiary undertakings);
(ii)paragraph 1(2)(b) of Schedule 6 (numbers of directors exercising share options and receiving shares under long term incentive schemes);
(iii)paragraph 2 of Schedule 6 (details of highest paid director's emoluments etc.); or
(iv)paragraph 7 of Schedule 6 (excess retirement benefits of directors and past directors).]
(4) The directors' report for the year need not give the information required by—
[F7(a)Articles 242ZZA(1)(c) (directors' report: amount to be paid as dividend) F8. . . ;]
(b)paragraph 1(2) of Schedule 7 (statement of market value of fixed assets where substantially different from balance sheet amount);
[F4(ba)paragraph 5A of Schedule 7 (disclosures relating to the use of financial instruments);]
(c)paragraph 6 of Schedule 7 (miscellaneous disclosures); or
(d)paragraph 11 of Schedule 7 (employee involvement).
(5) Notwithstanding anything in Article 250(1), the directors of the company need not deliver to the registrar any of the following, namely—
(a)a copy of the company's profit and loss account for the year;
(b)a copy of the directors' report for the year; and
(c)if[F4 they prepare Companies Order individual accounts and] they deliver a copy of a balance sheet drawn up as at the last day of the year which complies with the requirements of Schedule 8A, a copy of the company's balance sheet drawn up as at that day.
(6) Neither a copy of the company's accounts for the year delivered to the registrar under Article 250(1), nor a copy of a balance sheet delivered to the registrar under paragraph (5)(c), need give the information required by—
(a)paragraph 4 of Schedule 5 (financial years of subsidiary undertakings);
(b)paragraph 6 of Schedule 5 (shares of company held by subsidiary undertakings);
(c)Part I of Schedule 6 (directors' and chairman's emoluments, pensions and compensation for loss of office); or
(d)Article 398A(3) (amount of auditors' remuneration).
(7) The provisions of Article 241 as to the signing of the copy of the balance sheet delivered to the registrar apply to a copy of a balance sheet delivered under paragraph (5)(c).
(8) Subject to paragraph (9), each of the following, namely—
(a)accounts prepared in accordance with paragraph (2) or (3),
(b)a report prepared in accordance with paragraph (4), and
(c)a copy of accounts delivered to the registrar in accordance with paragraph (5) or (6),
shall contain a statement in a prominent position on the balance sheet, in the report or, as the case may be, on the copy of the balance sheet, above the signature required by Article 241, 242A or paragraph (7), that they are prepared in accordance with the special provisions of this Part relating to small companies.
(9) Paragraph (8) does not apply where[F9 the directors of the company have taken advantage of the exemption from audit conferred by Article 257AA (dormant companies)].]
F2SR 1997/436, reg. 2
F3mod. SR 1994/133
F4SR 2004/496
F5SR 1997/545
F6Art. 254(3)(b)(ai) inserted (1.4.2006) by Companies (1986 Order) (Investment Companies and Accounting and Audit Amendments) Regulations (Northern Ireland) 2006 (S.R. 2006/137), reg. 12
F7SR 2005/61
F8Words in art. 254(4)(a) repealed (1.10.2007) by Companies Act 2006 (c. 46), ss. 1284(2), 1295, 1300(2), Sch. 16; S.I. 2007/2194, arts. 1(3)(a), 8, Sch. 2 Pt. 2 (with art. 12, Sch. 3 para. 43(2))
F9SR 2001/153
[F10Special provisions for medium‐sized companiesN.I.
254A .F11—[F12(1) Subject to Article 255A, this Article applies where a company qualifies as a medium‐sized company in relation to a financial year[F13 and its directors prepare Companies Order individual accounts for that year].
(2) The company's individual accounts for the year need not comply with the requirements of paragraph 36A of Schedule 4 (disclosure with respect to compliance with accounting standards).
[F14(2A) The directors' report for the year need not comply with the requirements of Article 242ZZB(3) (business review to include analysis using key performance indicators) so far as they relate to non-financial information.]
(3) The company may deliver to the registrar a copy of the company's accounts for the year—
(a)which includes a profit and loss account in which the following items listed in the profit and loss account formats set out in Part I of Schedule 4 are combined as one item under the heading “gross profit or loss”
Items 1, 2, 3 and 6 in Format 1;
Items 1 to 5 in Format 2;
Items A.1, B.1 and B.2 in Format 3;
Items A.1, A.2 and B.1 to B.4 in Format 4;
(b)which does not contain the information required by paragraph 55 of Schedule 4 (particulars of turnover).
(4) A copy of accounts delivered to the registrar in accordance with paragraph (3) shall contain a statement in a prominent position on the copy of the balance sheet, above the signature required by Article 241, that the accounts are prepared in accordance with the special provisions of this Part relating to medium‐sized companies.]]
F10SR 1997/436
F11mod. SR 1994/133
F12Art. 254A repealed (1.10.2007 for art. 254A(2A), otherwise prosp.) by Companies Act 2006 (c. 46), ss. 1284(2), 1295, 1300(2), Sch. 16; S.I. 2007/2194, arts. 1(3)(a), 8, Sch. 2 Pt. 2 (with art. 12)
F13SR 2004/496
F14SR 2005/61
Qualification of company as small or medium‐sizedN.I.
255 .F15—(1) A company qualifies as small or medium‐sized in relation to a financial year if the qualifying conditions are met—
(a)in the case of the company's first financial year, in that year, and
(b)in the case of any subsequent financial year, in that year and the preceding year.
(2) A company shall be treated as qualifying as small or medium‐sized in relation to a financial year—
(a)if it so qualified in relation to the previous financial year under[F16 paragraph (1) or was treated as so qualifying under sub‐paragraph (b)]; or
(b)if it was treated as so qualifying in relation to the previous year by virtue of sub‐paragraph (a) and the qualifying conditions are met in the year in question.
(3) The qualifying conditions are met by a company in a year in which it satisfies two or more of the following requirements—
[F17Small company]
(4) For a period which is a company's financial year but not in fact a year the maximum figures for turnover shall be proportionately adjusted.
[F19(5) The balance sheet total means—
(a)in the case of Companies Order individual accounts—
(i)the aggregate of the amounts shown in the balance sheet under the headings corresponding to items A to D of Format 1 in Part I of Schedule 4 or Part I of Schedule 8, or
(ii)if Format 2 is adopted, the aggregate of the amounts shown under the general heading “ASSETS”;
(b)in the case of IAS individual accounts, the aggregate of the amounts shown as assets in the balance sheet.]
(6) The number of employees means the average number of persons employed by the company in the year (determined on a[F20 monthly] basis).
That number shall be determined by applying the method of calculation prescribed by paragraph 56(2) and (3) of Schedule 4 for determining the corresponding number required to be stated in a note to the company's accounts.
[F21Cases in which special provisions do not applyN.I.
255A .F22—[F23(1) If a company is, or was at any time within the financial year to which the accounts relate, an ineligible company, Articles 254 and 254A do not apply.
(1A) If a company does not fall within paragraph (1) but is, or was at any time within the financial year to which the accounts relate, a member of an ineligible group—
(a)Article 254(4) and (5)(b) and Article 254(2A) apply;
(b)the other provisions of Articles 254 and 254A do not apply.
[F24(1B) A company that qualifies as small in relation to the financial year to which the accounts relate is ineligible if—
(a)it is a public company,
(b)it is an authorised insurance company, a banking company, an e-money issuer, an ISD investment firm or a UCITS management company, or
(c)it carries on an insurance market activity.
(1C) A company that qualifies as medium-sized in relation to the financial year to which the accounts relate is ineligible if—
(a)it is a public company,
(b)it has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, or
(c)it carries on an insurance market activity.]]
(2) A group is ineligible if any of its members is—
(a)a public company or a body corporate which (not being a company) has power under its constitution to offer its shares or debentures to the public and may lawfully exercise that power,
[F25(b)a person [F26(other than a small company)] who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity,
[F27(ba)a small company that is an authorised insurance company, a banking company, an e-money issuer, an ISD investment firm or a UCITS management company, or]
(c)a person who carries on insurance market activity.]
[F28(2A) A company is a small company for the purposes of paragraph (2) if it qualified as small in relation to its last financial year ending on or before the end of the financial year to which the accounts relate.]
(3) A parent company shall not be treated as qualifying as a small company in relation to a financial year unless the group headed by it qualifies as a small group, and shall not be treated as qualifying as a medium-sized company in relation to a financial year unless that group qualifies as a medium-sized group (see Article 257).]
F21SR 1997/436, reg. 4
F22mod. SR 1994/133
F23SR 2005/61
F24Art. 255A(1B)(1C) substituted (1.12.2006) for art. 255A(1B) by Companies (1986 Order) (Small Companies' Accounts and Audit) Regulations (Northern Ireland) 2006 (S.R. 2006/438), reg. 2(2)
F25SI 2001/3649
F26Words in art. 255A(2)(b) inserted (1.12.2006) by Companies (1986 Order) (Small Companies' Accounts and Audit) Regulations (Northern Ireland) 2006 (S.R. 2006/438), reg. 2(3)(a)
F27Art. 255A(2)(ba) substituted (1.12.2006) for word in art. 255A(2)(b) by Companies (1986 Order) (Small Companies' Accounts and Audit) Regulations (Northern Ireland) 2006 (S.R. 2006/438), reg. 2(3)(b)
[F29Special auditors' reportN.I.
255B .F30—(1) This Article applies where—
(a)the directors of a company propose to deliver to the registrar copies of accounts ("abbreviated accounts") prepared in accordance with Article 254(5) or (6) or 254A(3) ("the relevant provision"),
(b)the directors have not taken advantage of the exemption from audit conferred by Article 257A(1) or (2)[F31 or Article 257AA],F31. . .
Sub.‐para. (c) rep. by SR 2001/153
(2) If abbreviated accounts prepared in accordance with the relevant provision are delivered to the registrar, they shall be accompanied by a copy of a special report of the auditors stating that in their opinion—
(a)the company is entitled to deliver abbreviated accounts prepared in accordance with that provision, and
(b)the abbreviated accounts to be delivered are properly prepared in accordance with that provision.
(3) In such a case a copy of the auditors' report under Article 243 need not be delivered, but—
(a)if that report was qualified, the special report shall set out that report in full together with any further material necessary to understand the qualification; and
(b)if that report contained a statement under—
(i)Article 245(2) (accounts, records or returns inadequate or accounts not agreeing with records and returns), or
(ii)Article 245(3) (failure to obtain necessary information and explanations),
the special report shall set out that statement in full.
(4) Article 244 (signature of auditors' report) applies to a special report under this Article as it applies to a report under Article 243.
(5) If abbreviated accounts prepared in accordance with the relevant provision are delivered to the registrar, references in Article 248 (requirements in connection with publication of accounts) to the auditors' report under Article 243 shall be read as references to the special auditors' report under this Article.]
Exemption for small and medium‐sized groupsN.I.
256 .F32—(1) A parent company need not prepare group accounts for a financial year in relation to which the group headed by that company qualifies as a small or medium‐sized group and is not an ineligible group.
(2) A group is ineligible if any of its members is—
(a)a public company or a body corporate which (not being a company) has power under its constitution to offer its shares or debentures to the public and may lawfully exercise that power,
[F33(b)a person [F34(other than a small company)] who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity,
[F35(ba)a small company that is an authorised insurance company, a banking company, an e-money issuer, an ISD investment firm or a UCITS management company, or]
(c)a person who carries on insurance market activity.]
[F36(2A) A company is a small company for the purposes of paragraph (2) if it qualified as small in relation to its last financial year ending on or before the end of the financial year to which the group accounts relate.]
Paras. (3), (4) rep. by SR 1997/314
F32mod. SR 1994/133
F33SI 2001/3649
F34Words in art. 256(2)(b) inserted (1.12.2006) by Companies (1986 Order) (Small Companies' Accounts and Audit) Regulations (Northern Ireland) 2006 (S.R. 2006/438), reg. 3(2)(a)
F35Art. 256(2)(ba) substituted (1.12.2006) for word in art. 256(2)(b) by Companies (1986 Order) (Small Companies' Accounts and Audit) Regulations (Northern Ireland) 2006 (S.R. 2006/438), reg. 3(2)(b)
[F37Group accounts prepared by small companyN.I.
256A .F38—(1) This Article applies where a small company—
(a)has prepared individual accounts for a financial year in accordance with Article 254(2) or (3), and
(b)is preparing[F39 Companies Order group accounts] in respect of the same year.
(2) If the group accounts—
(a)comply with the provisions of Schedule 8, or
(b)fail to comply with those provisions only in so far as they comply instead with one or more corresponding provisions of Schedule 4,
they need not comply with the provisions or, as the case may be, the remaining provisions of Schedule 4; and where advantage is taken of this paragraph, references in Schedule 4A to compliance with the provisions of Schedule 4 shall be construed accordingly.
(3) For the purposes of this Article, Schedule 8 shall have effect as if, in each balance sheet format set out in that Schedule, for item B.III there were substituted the following item—
“B.IIIInvestments
1.Shares in group undertakings
2.Interests in associated undertakings
3.Other participating interests
4.Loans to group undertakings and undertakings in which a participating interest is held
5.Other investments other than loans
6.Others.”
(4) The group accounts need not give the information required by the provisions specified in Article 254(3).
(5) Group accounts prepared in accordance with this Article shall contain a statement in a prominent position on the balance sheet, above the signature required by Article 241, that they are prepared in accordance with the special provision of this Part relating to small companies.]
Qualification of group as small or medium‐sizedN.I.
257 .F40—(1) A group qualifies as small or medium‐sized in relation to a financial year if the qualifying conditions are met—
(a)in the case of the parent company's first financial year, in that year, and
(b)in the case of any subsequent financial year, in that year and the preceding year.
(2) A group shall be treated as qualifying as small or medium‐sized in relation to a financial year—
(a)if it so qualified in relation to the previous financial year under[F41 paragraph (1) or was treated as so qualifying under sub‐paragraph (b)]; or
(b)if it was treated as so qualifying in relation to the previous year by virtue of sub‐paragraph (a) and the qualifying conditions are met in the year in question.
(3) The qualifying conditions are met by a group in a year in which it satisfies two or more of the following requirements—
[F42Small group]
(4) The aggregate figures shall be ascertained by aggregating the relevant figures determined in accordance with Article 255 for each member of the group.
In relation to the aggregate figures for turnover and balance sheet total, “net” means with the set‐offs and other adjustments required by Schedule 4A in the case of group accounts and “gross” means without those set‐offs and other adjustments; and a company may satisfy the relevant requirement on the basis of either the net or the gross figure.
(5) The figures for each subsidiary undertaking shall be those included in its accounts for the relevant financial year, that is—
(a)if its financial year ends with that of the parent company, that financial year, and
(b)if not, its financial year ending last before the end of the financial year of the parent company.
(6) If those figures cannot be obtained without disproportionate expense or undue delay, the latest available figures shall be taken.