SCHEDULE 1Consequential amendments and transitional provision relating to the adoption of international accounting standards in the United Kingdom
PART 1Amendments to Primary Legislation
CHAPTER 1Amendments to the Companies Act 2006
Amendments to the Companies Act 2006I11
The Companies Act 2006 M1 is amended in accordance with this Chapter.
Companies qualifying as small: parent companiesI22
In section 383(6), for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
Duty to keep accounting recordsI33
In section 386(2)(c) and (5), omit “(and, where applicable, of Article 4 of the IAS Regulation)”.
Where and for how long records to be keptI44
In section 388(3)(b), omit “(and, where applicable, of Article 4 of the IAS Regulation)”.
Individual accounts: exemption for dormant subsidiariesI55
In section 394A(2)(c)(ii) M2, for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
Individual accounts: applicable accounting frameworkI66
In section 395(1)(b) and (3) M3, for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
IAS individual accountsI77
In section 397(2) M4, for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
Exemption for company included in EEA group accounts of larger groupI88
In section 400(2)(b)(ii), for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
Exemption for company included in non-EEA group accounts of larger groupI99
In section 401(2)(b)(iii) M5, for “international accounting standards adopted pursuant to the IAS Regulation” substitute “
UK-adopted international accounting standards
”
.
Group accounts: applicable accounting frameworkI1010
In section 403 M6—
a
for subsection (1) substitute—
1
The group accounts of a parent company whose securities are, on its balance sheet date, admitted to trading on a UK regulated market must be prepared in accordance with UK-adopted international accounting standards (“IAS group accounts”).
b
in subsections (2)(b) and (4), for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
IAS group accountsI1111
In section 406(2) M7, for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
Approval and signing of accountsI1212
In section 414(4), omit “(and, where applicable, of Article 4 of the IAS Regulation)”.
Dormant subsidiaries exempt from obligation to file accountsI1313
In section 448A(2)(c)(ii) M8, for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
Voluntary revision of accounts etc.I1414
In section 454(1) M9 and (2)(a), omit “(or, where applicable, of Article 4 of the IAS Regulation)”.
Secretary of State's notice in respect of accounts or reportsI1515
In section 455(1) M10 and (4)(b), omit “(or, where applicable, of Article 4 of the IAS Regulation)”.
Application to court in respect of defective accounts or reportsI1616
In section 456(1) M11, (5) and (6), omit “(or, where applicable, of Article 4 of the IAS Regulation)”.
Other persons authorised to apply to the courtI1717
In section 457(1)(a) M12, omit “(or, where applicable, of Article 4 of the IAS Regulation)”.
Power of authorised person to require documents, information and explanationsI1818
In section 459(1) M13, omit “(or, where applicable, of Article 4 of the IAS Regulation)”.
Companies qualifying as medium-sized: parent companiesI1919
In section 466(6), for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
Notes to the accountsI2020
In section 472(2), for “international accounting standards” substitute “
UK-adopted international accounting standards
”
.
Minor definitionsI2121
In section 474(1) M14—
a
omit the definition of “IAS Regulation”;
b
in the definition of “international accounting standards”, for “the IAS Regulation, adopted from time to time by the European Commission in accordance with that Regulation” substitute “
Article 2 of Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards
”
;
c
in the definition of “profit and loss account”, for “international accounting standards” substitute “
UK-adopted international accounting standards
”
;
d
after the definition of “UCITS management company” insert—
“UK-adopted international accounting standards” means the international accounting standards which are adopted for use within the United Kingdom by virtue of Chapter 2 or 3 of Part 2 of the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019.
Subsidiary companies: conditions for exemption from auditI2222
In section 479A(2)(c)(ii) M15, for “international accounting standards” substitute “
UK-adopted international accounting standards (within the meaning given by section 474(1))
”
.
Auditor's report on company's annual accountsI2323
In section 495(3)(c), omit “(and, where applicable, Article 4 of the IAS Regulation)”.
Supplementary accounting statement (merger)I2424
In section 910(3), omit “(and where relevant Article 4 of the IAS Regulation)”.
Supplementary accounting statement (division)I2525
In section 925(3), omit “(and where relevant Article 4 of the IAS Regulation)”.
Index of defined expressionsI2626
In Schedule 8, in the index of defined expressions—
a
omit the entry for “IAS Regulation (in Part 15)”;
b
after the entry for “UCITS management company”, insert—
UK-adopted international accounting standards (in Part 15)
section 474(1)