Per Companies Act 2014 Section 353 (post Accounting Act 2017) a micro-entity or small company may choose to file ‘Abridged’ accounts with Companies Registration Office (CRO).
The concept of Abridged accounts has been around for some time but, under The Companies (Accounting) Act 2017, the minimum requirements of a set of abridged accounts have changed.
Under the Companies (Accounting) Act 2017 the elements to be suppressed for filing in a set of abridged accounts are the Directors Report and the Profit and Loss Account.
Sage Final Accounts supports the preparation of Micro-entity FRS 105 abridged accounts.
To prepare abridged accounts, select the relevant compliance pack option as shown below:
This option can be amended at any time by selecting Set of Accounts Options > Period Options > Compliance Pack.
By selecting the ‘Prepare abridged accounts?’ option, the set of accounts prepared for CRO and only this set of accounts will be abridged. This means that:
- The Profit and Loss account will be suppressed,
- References to Financial Statements will be changed to Abridged Financial Statements, and
- A statement is added to the foot of the Balance Sheet regarding the adoption of the abridgement exemption.
The Directors Report is not required for micro-entity accounts and as such we exclude this from the set of accounts prepared for CRO regardless of whether accounts are abridged or not.
The sets of accounts prepared for members and for Revenue will remain unchanged.