Transactions with directors in abbreviated accounts
stevecBc 20 Nov 2009 - 15:20
I understood that only "advances,credits and guarantees" had to be disclosed in abbreviated accounts of small companies. However I note in "Preparing Company Accounts" 2009/10 by Ray Mayes that he shows a related party note in the abbreviated. Does anyone know which treatment is correct?
Stevecbc
Should be advances, credits
Should be advances, credits and guarantees only as far as I'm concerned.
I've got the 08/09 version of Mears which reflects CA06. The small co abbreviated a/cs there just have an advance and a material interest. I'm not aware of anything that's changed since my version.
The 2009/10 version is the
The 2009/10 version is the same. Is the material interest note in the abbreviated accounts a related party note or does it fall under the heading advances,credits and guarantees?
The requirement for
The requirement for disclosure of material interests was in Sch 6 CA85. There is no corresponding requirement in CA06. Thus I do not believe the note is needed in the abbreviateds.
Appendix 1 of the CCH Co Accts checklist deals with the material interests disclosure for periods commencing before 6 April 2008 (Sch 6 CA85). There is no corresponding section for p/c on or after 6 April 2008 in the checklist because the disclosure requirement just goes away.
The transaction may still be a related party transaction per FRS 8 or the FRSSE - but there would be no disclosure requirement in the abbreviateds.
The Mayes a/cs aren't wrong though - you can choose disclose what you like.
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