3.—(1) Any item required in accordance with paragraph 1 to be shown in a small company’s balance sheet or profit and loss account may be shown in greater detail than required by the format adopted.
(2) A small company’s balance sheet or profit and loss account may include an item representing or covering the amount of any asset or liability, income or expenditure not otherwise covered by any of the items listed in the format adopted, but the following shall not be treated as assets in any small company’s balance sheet—
(a)preliminary expenses;
(b)expenses of and commission on any issue of shares or debentures; and
(c)costs or research.
(3) In preparing a small company’s balance sheet or profit and loss account the directors of the company shall adapt the arrangement and headings and sub-headings otherwise required by paragraph 1 in respect of items to which an Arabic number is assigned in the format adopted, in any case where the special nature of the company’s business requires such adaptation.
(4) Items to which Arabic numbers are assigned in any of the formats set out in Section B may be combined in a small company’s accounts for any financial year if either—
(a)their individual amounts are not material to assessing the state of affairs or profit or loss of the company for that year; or
(b)the combination facilitates that assessment;
but in a case with head (b) the individual amounts of any items so combined shall be disclosed in a note to the accounts.
(5) Subject to paragraph 4(3), a heading or sub-heading corresponding to an item listed in the format adopted in preparing a small company’s balance sheet or profit and loss account shall not be included if there is no amount to be shown for that item in respect of the financial year to which the balance sheet or profit and loss account relates.
(6) Every profit and loss account of a small company shall show the amount of the company’s profit or loss on ordinary activities before taxation.
(7) Every profit and loss account of a small company shall show separately as additional items—
(a)any amount set aside or proposed to be set aside to, or withdraw or proposed to be withdrawn from, reserves;
(b)the aggregate amount of any dividends paid and proposed.