The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685

SCHEDULE 1 U.K. Consequential amendments and transitional provision relating to the adoption of international accounting standards in the United Kingdom

PART 1 U.K. Amendments to Primary Legislation

CHAPTER 1 U.K. Amendments to the Companies Act 2006

Amendments to the Companies Act 2006 U.K.

1.  The Companies Act 2006 M1 is amended in accordance with this Chapter.

Commencement Information

I1 Sch. 1 para. 1 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M1 2006 c.46.

Companies qualifying as small: parent companies U.K.

2.  In section 383(6), for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I2 Sch. 1 para. 2 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Duty to keep accounting records U.K.

3.  In section 386(2)(c) and (5), omit “(and, where applicable, of Article 4 of the IAS Regulation)”.

Commencement Information

I3 Sch. 1 para. 3 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Where and for how long records to be kept U.K.

4.  In section 388(3)(b), omit “(and, where applicable, of Article 4 of the IAS Regulation)”.

Commencement Information

I4 Sch. 1 para. 4 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Individual accounts: exemption for dormant subsidiaries U.K.

5.  In section 394A(2)(c)(ii) M2 , for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I5 Sch. 1 para. 5 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M2 Section 394A was inserted by S.I. 2012/2301.

Individual accounts: applicable accounting framework U.K.

6.  In section 395(1)(b) and (3) M3 , for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I6 Sch. 1 para. 6 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M3 Section 395(3) was amended by S.I. 2012/2301.

IAS individual accounts U.K.

7.  In section 397(2) M4 , for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I7 Sch. 1 para. 7 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M4 Section 397 was substituted by S.I. 2015/980.

Exemption for company included in EEA group accounts of larger group U.K.

8.  In section 400(2)(b)(ii), for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I8 Sch. 1 para. 8 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Exemption for company included in non-EEA group accounts of larger group U.K.

9.  In section 401(2)(b)(iii) M5 , for “international accounting standards adopted pursuant to the IAS Regulation” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I9 Sch. 1 para. 9 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M5 Section 401(2)(b) was substituted by S.I. 2015/980.

Group accounts: applicable accounting framework U.K.

10.  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 ”.

Commencement Information

I10 Sch. 1 para. 10 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M6 Section 403(4) was amended by S.I. 2012/2301.

IAS group accounts U.K.

11.  In section 406(2) M7 , for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I11 Sch. 1 para. 11 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M7 Section 406 was substituted by S.I. 2015/980.

Approval and signing of accounts U.K.

12.  In section 414(4), omit “(and, where applicable, of Article 4 of the IAS Regulation)”.

Commencement Information

I12 Sch. 1 para. 12 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Dormant subsidiaries exempt from obligation to file accounts U.K.

13.  In section 448A(2)(c)(ii) M8 , for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I13 Sch. 1 para. 13 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M8 Section 448A was inserted by S.I. 2012/2301. There are no relevant amendments.

Voluntary revision of accounts etc. U.K.

14.  In section 454(1) M9 and (2)(a), omit “(or, where applicable, of Article 4 of the IAS Regulation)”.

Commencement Information

I14 Sch. 1 para. 14 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M9 Section 454(1) was amended by S.I. 2013/1970.

Secretary of State's notice in respect of accounts or reports U.K.

15.  In section 455(1) M10 and (4)(b), omit “(or, where applicable, of Article 4 of the IAS Regulation)”.

Commencement Information

I15 Sch. 1 para. 15 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M10 Section 455(1) was amended by S.I. 2013/1970.

Application to court in respect of defective accounts or reports U.K.

16.  In section 456(1) M11 , (5) and (6), omit “(or, where applicable, of Article 4 of the IAS Regulation)”.

Commencement Information

I16 Sch. 1 para. 16 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M11 Section 456(1) was amended by S.I. 2013/1970.

Other persons authorised to apply to the court U.K.

17.  In section 457(1)(a) M12 , omit “(or, where applicable, of Article 4 of the IAS Regulation)”.

Commencement Information

I17 Sch. 1 para. 17 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M12 Section 457(1)(a) was amended by S.I. 2013/1970.

Power of authorised person to require documents, information and explanations U.K.

18.  In section 459(1) M13 , omit “(or, where applicable, of Article 4 of the IAS Regulation)”.

Commencement Information

I18 Sch. 1 para. 18 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M13 Section 459(1) was amended by S.I. 2013/1970.

Companies qualifying as medium-sized: parent companies U.K.

19.  In section 466(6), for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I19 Sch. 1 para. 19 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Notes to the accounts U.K.

20.  In section 472(2), for “international accounting standards” substitute “ UK-adopted international accounting standards ”.

Commencement Information

I20 Sch. 1 para. 20 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Minor definitions U.K.

21.  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.”.

Commencement Information

I21 Sch. 1 para. 21 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M14 There are amendments to section 474(1) but none is relevant.

Subsidiary companies: conditions for exemption from audit U.K.

22.  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)) ”.

Commencement Information

I22 Sch. 1 para. 22 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Marginal Citations

M15 Section 479A was inserted by S.I. 2012/2301. There are no relevant amendments.

Auditor's report on company's annual accounts U.K.

23.  In section 495(3)(c), omit “(and, where applicable, Article 4 of the IAS Regulation)”.

Commencement Information

I23 Sch. 1 para. 23 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Supplementary accounting statement (merger) U.K.

24.  In section 910(3), omit “(and where relevant Article 4 of the IAS Regulation)”.

Commencement Information

I24 Sch. 1 para. 24 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Supplementary accounting statement (division) U.K.

25.  In section 925(3), omit “(and where relevant Article 4 of the IAS Regulation)”.

Commencement Information

I25 Sch. 1 para. 25 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)

Index of defined expressions U.K.

26.  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)”.

Commencement Information

I26 Sch. 1 para. 26 in force on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)