Which section numbers go on the balance sheet?
I wonder if you can help me with the following query:
I am preparing a set of Limited company accounts for the year ended 31 August 2009 under the FRSSE.
We use Digita to prepare the accounts and at the foot of the balance sheet there is a note referring to s394 (see appendix 1).
Our CCH checklist states that this section number should be S396 (see appendix 2)
I have spoken to our professional body helpline who said that their model says that it should read “s394 and s395” although she has had other queries referring to this some accountants are asking should it refer to s393?. She stated that she is “not sure”.
I rang Companies House to ask what their guidance is and they referred me to GP2 chapter six section 13. (appendix 3) This has made matters worse as this paragraph now bears little resemblance to our standard accounts. Companies House told me that they are rejecting any accounts which do not contain the paragraph in brackets on appendix 3 stated exactly as written in their guidance.
I would be grateful if you could let me know which disclosures are correct!
The model accounts I use
The model accounts I use (from an authoritative source) refer to s394-395. s393 requires accounts to be true and fair. s396 states what Companies Act accoutns consist of. On that basis I would say that to refer to s393-396 would also be fine!
The Companies House guidance (GP2) specifically uses the following wording:
' For the year ending...(dd/mm/yy) the company was entitled to exemption from audit under s477 of CA06 relating to small companies.
Directors' responsibilities:
- the members have not required the company to obtain and audit of its accounts for the year in question in accordance with s476
- the directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts;
- these accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime'
The GP2 wording is in essence the same. If anything it's less detailed as it makes less reference to section numbers.
On that basis any appropriate wording should do. However if Cos House are rejecting anything but their wording I would suggest use of the GP2 wording to make things easier.
Keep us posted on developments!
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