C4C5C6C7Part 15Accounts and reports

Annotations:
Modifications etc. (not altering text)
C5

Pt. 15 applied (with modifications) (6.4.2008) by The Partnerships (Accounts) Regulations 2008 (S.I. 2008/569), regs. 4, 7, Sch. Pt. 1

C6

Pt. 15 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 16 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

Chapter 12Supplementary provisions

Companies qualifying as medium-sized

C1C8C9465Companies qualifying as medium-sized: general

1

A company qualifies as medium-sized in relation to its first financial year if the qualifying conditions are met in that year.

2

A company qualifies as medium-sized in relation to a subsequent financial year—

a

if the qualifying conditions are met in that year and the preceding financial year;

b

if the qualifying conditions are met in that year and the company qualified as medium-sized in relation to the preceding financial year;

c

if the qualifying conditions were met in the preceding financial year and the company qualified as medium-sized in relation to that year.

3

The qualifying conditions are met by a company in a year in which it satisfies two or more of the following requirements—

1. Turnover

F6Not more than £36 million

2. Balance sheet total

F7Not more than £18 million

3. Number of employees

Not more than 250

4

For a period that is a company's financial year but not in fact a year the maximum figures for turnover must be proportionately adjusted.

5

The balance sheet total means the aggregate of the amounts shown as assets in the company's balance sheet.

6

The number of employees means the average number of persons employed by the company in the year, determined as follows—

a

find for each month in the financial year the number of persons employed under contracts of service by the company in that month (whether throughout the month or not),

b

add together the monthly totals, and

c

divide by the number of months in the financial year.

7

This section is subject to section 466 (companies qualifying as medium-sized: parent companies).

C2C8C10466Companies qualifying as medium-sized: parent companies

1

A parent company qualifies as a medium-sized company in relation to a financial year only if the group headed by it qualifies as a medium-sized group.

2

A group qualifies as medium-sized in relation to the parent company's first financial year if the qualifying conditions are met in that year.

3

A group qualifies as medium-sized in relation to a subsequent financial year of the parent company—

a

if the qualifying conditions are met in that year and the preceding financial year;

b

if the qualifying conditions are met in that year and the group qualified as medium-sized in relation to the preceding financial year;

c

if the qualifying conditions were met in the preceding financial year and the group qualified as medium-sized in relation to that year.

4

The qualifying conditions are met by a group in a year in which it satisfies two or more of the following requirements—

1. Aggregate turnover

F8Not more than £36 million net (or £43.2 million gross)

2. Aggregate balance sheet total

F9Not more than £18 million net (or £21.6 million gross)

3. Aggregate number of employees

Not more than 250

5

The aggregate figures are ascertained by aggregating the relevant figures determined in accordance with section 465 for each member of the group.

6

In relation to the aggregate figures for turnover and balance sheet total—

  • “net” means after any set-offs and other adjustments made to eliminate group transactions—

    1. a

      in the case of Companies Act accounts, in accordance with regulations under section 404,

    2. b

      in the case of IAS accounts, in accordance with international accounting standards; and

  • “gross” means without those set-offs and other adjustments.

A company may satisfy any relevant requirement on the basis of either the net or the gross figure.

7

The figures for each subsidiary undertaking shall be those included in its individual 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.

If those figures cannot be obtained without disproportionate expense or undue delay, the latest available figures shall be taken.

C3C8C11467Companies excluded from being treated as medium-sized

1

A company is not entitled to take advantage of any of the provisions of this Part relating to companies qualifying as medium-sized if it was at any time within the financial year in question—

a

a public company,

b

a company that—

i

has permission under F12Part 4A of the Financial Services and Markets Act 2000 (c. 8) to carry on a regulated activity, or

ii

carries on insurance market activity,

F1ba

an e-money issuer, or

c

a member of an ineligible group.

2

A group is ineligible if any of its members is—

F10a

a traded company,

b

a body corporate (other than a company) whose shares are admitted to trading on a regulated market,

c

a person (other than a small company) who has permission under F11Part 4A of the Financial Services and Markets Act 2000 to carry on a regulated activity,

F2ca

an e-money issuer,

d

a small company that is an authorised insurance company, a banking company, F3. . . F4a MiFID investment firm or a UCITS management company, or

e

a person who carries on insurance market activity.

3

A company is a small company for the purposes of subsection (2) if it qualified as small in relation to its last financial year ending on or before the end of the financial year in question.

F54

This section does not prevent a company from taking advantage of section 417(7) (business review: non-financial information) by reason only of its having been a member of an ineligible group at any time within the financial year in question.