C3Part 16Audit

Annotations:
Modifications etc. (not altering text)

C1C2Chapter 1Requirement for audited accounts

Annotations:
Modifications etc. (not altering text)
C2

Pt. 16 Ch. 1 applied (with modifications) (6.4.2008) by The Partnerships (Accounts) Regulations 2008 (S.I. 2008/569), regs. 4, 7, Sch. Pt. 1

Exemption from audit: small companies

479Availability of small companies exemption in case of group company

1

A company is not entitled to the exemption conferred by section 477 (small companies) in respect of a financial year during any part of which it was a group company unless—

a

the conditions specified in subsection (2) below are met, or

b

subsection (3) applies.

2

The conditions are—

a

that the group—

i

qualifies as a small group in relation to that financial year, and

ii

was not at any time in that year an ineligible group;

b

that the group's aggregate turnover in that year is not more than £5.6 million net (or £6.72 million gross) ;

c

that the group's aggregate balance sheet total for that year is not more than £2.8 million net (or £3.36 million gross) .

3

A company is not excluded by subsection (1) if, throughout the whole of the period or periods during the financial year when it was a group company, it was both a subsidiary undertaking and dormant.

4

In this section—

a

“group company” means a company that is a parent company or a subsidiary undertaking, and

b

“the group”, in relation to a group company, means that company together with all its associated undertakings.

For this purpose undertakings are associated if one is a subsidiary undertaking of the other or both are subsidiary undertakings of a third undertaking.

5

For the purposes of this section—

a

whether a group qualifies as small shall be determined in accordance with section 383 (companies qualifying as small: parent companies);

b

“ineligible group” has the meaning given by section 384(2) and (3);

c

a group's aggregate turnover and aggregate balance sheet total shall be determined as for the purposes of section 383;

d

“net” and “gross” have the same meaning as in that section;

e

a company may meet any relevant requirement on the basis of either the gross or the net figure.

6

The provisions mentioned in subsection (5) apply for the purposes of this section as if all the bodies corporate in the group were companies.