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Companies Act 1989

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This is the original version (as it was originally enacted).

Section 13(2).

SCHEDULE 6Exemptions for Small and Medium-sized Companies[Schedule 8 to the Companies Act 1985]

Part ISmall Companies

Balance sheet

1(1)The company may deliver a copy of an abbreviated version of the full balance sheet, showing only those items to which a letter or Roman number is assigned in the balance sheet format adopted under Part I of Schedule 4, but in other respects corresponding to the full balance sheet.

(2)If a copy of an abbreviated balance sheet is delivered, there shall be disclosed in it or in a note to the company’s accounts delivered—

(a)the aggregate of the amounts required by note (5) of the notes on the balance sheet formats set out in Part I of Schedule 4 to be shown separately for each item included under debtors (amounts falling due after one year), and

(b)the aggregate of the amounts required by note (13) of those notes to be shown separately for each item included under creditors in Format 2 (amounts falling due within one year or after more than one year).

(3)The provisions of section 233 as to the signing of the copy of the balance sheet delivered to the registrar apply to a copy of an abbreviated balance sheet delivered in accordance with this paragraph.

Profit and loss account

2A copy of the company’s profit and loss account need not be delivered.

Disclosure of information in notes to accounts

3(1)Of the information required by Part III of Schedule 4 (information to be given in notes to accounts if not given in the accounts themselves) only the information required by the following provisions need be given—

  • paragraph 36 (accounting policies),

  • paragraph 38 (share capital),

  • paragraph 39 (particulars of allotments),

  • paragraph 42 (fixed assets), so far as it relates to those items to which a letter or Roman number is assigned in the balance sheet format adopted,

  • paragraph 48(1) and (4) (particulars of debts),

  • paragraph 58(1) (basis of conversion of foreign currency amounts into sterling),

  • paragraph 58(2) (corresponding amounts for previous financial year), so far as it relates to amounts stated in a note to the company’s accounts by virtue of a requirement of Schedule 4 or under any other provision of this Act.

(2)Of the information required by Schedule 5 to be given in notes to the accounts, the information required by the following provisions need not be given—

  • paragraph 4 (financial years of subsidiary undertakings),

  • paragraph 5 (additional information about subsidiary undertakings),

  • paragraph 6 (shares and debentures of company held by subsidiary undertakings),

  • paragraph 10 (arrangements attracting merger relief).

(3)Of the information required by Schedule 6 to be given in notes to the accounts, the information required by Part I (directors' and chairman’s emoluments, pensions and compensation for loss of office) need not be given.

Directors' report

4A copy of the directors' report need not be delivered.

Part IIMedium-sized Companies

Profit and loss account

5The company may deliver 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.

Disclosure of information in notes to accounts

6The information required by paragraph 55 of Schedule 4 (particulars of turnover) need not be given.

Part IIISupplementary Provisions

Statement that advantage taken of exemptions

7(1)Where the directors of a company take advantage of the exemptions conferred by Part I or Part II of this Schedule, the company’s balance sheet shall contain—

(a)a statement that advantage is taken of the exemptions conferred by Part I or, as the case may be, Part II of this Schedule, and

(b)a statement of the grounds on which, in the directors' opinion, the company is entitled to those exemptions.

(2)The statements shall appear in the balance sheet immediately above the signature required by section 233.

Special auditors' report

8(1)If the directors of a company propose to take advantage of the exemptions conferred by Part I or II of this Schedule, it is the auditors' duty to provide them with a report stating whether in their opinion the company is entitled to those exemptions and whether the documents to be proposed to be delivered in accordance with this Schedule are properly prepared.

(2)The accounts delivered shall be accompanied by a special report of the auditors stating that in their opinion—

(a)the company is entitled to the exemptions claimed in the directors' statement, and

(b)the accounts to be delivered are properly prepared in accordance with this Schedule.

(3)In such a case a copy of the auditors' report under section 235 need not be delivered separately, but the full text of it shall be reproduced in the special report; and if the report under section 235 is qualified there shall be included in the special report any further material necessary to understand the qualification.

(4)Section 236 (signature of auditors' report) applies to a special report under this paragraph as it applies to a report under section 235.

Dormant companies

9Paragraphs 7 and 8 above do not apply where the company is exempt by virtue of section 250 (dormant companies) from the obligation to appoint auditors.

Requirements in connection with publication of accounts

10(1)Where advantage is taken of the exemptions conferred by Part I or II of this Schedule, section 240 (requirements in connection with publication of accounts) has effect with the following adaptations.

(2)Accounts delivered in accordance with this Schedule and accounts in the form in which they would be required to be delivered apart from this Schedule are both “statutory accounts” for the purposes of that section.

(3)References in that section to the auditors' report under section 235 shall be read, in relation to accounts delivered in accordance with this Schedule, as references to the special report under paragraph 8 above.

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