iamthemoney
Registered User
- Messages
- 43
A small company claiming audit exemption need only submit a balance sheet, with the 5 audit exemption clauses signed off by two directors.
...and you've just proven my point for me!
What about the statutory notes to the accounts, such as director's remuneration, share capital etc...
Also, the statement of director's responsibilities...
Notes and directors responsibilities are not required by cro if a small company and claiming audit exemption. As i said, a balance sheet and 5 audit exemption clauses suffice.
Notes and directors responsibilities are not required by cro if a small company and claiming audit exemption. As i said, a balance sheet and 5 audit exemption clauses suffice.
Notes and directors responsibilities are not required by cro if a small company and claiming audit exemption. As i said, a balance sheet and 5 audit exemption clauses suffice.
Now "The accountants" on here are not satisfied that these small companies would just complete abridged accounts, they also want them to complete "full accounts" including Directors reports, Statements of directors responsibilities,funds flow statements and detailed notes.
If I can just summarise my point
The cost and burden on small companies of preparing statutory accounts, in their present format, is completely disproportionate to the benefit derived from the said accounts by the users (if any) of the information contained within them.
Statutory accounts, of SME companies in their present format are not sufficient information for :
a) Investors
b) bankers
c) Managers / Directors
d) Shareholders
e) Suppliers
These accounts are only relevant for ensuring compliance with company law. As it stands today, preparation of such accounts is an utter waste of resources.
As we all know, The only worthwhile information eminating from most companies are its management accounts. This is the information that forms the basis of all management decisions and action.
If I can just summarise my point
The cost and burden on small companies of preparing statutory accounts, in their present format, is completely disproportionate to the benefit derived from the said accounts by the users (if any) of the information contained within them.
Statutory accounts, of SME companies in their present format are not sufficient information for :
a) Investors
b) bankers
c) Managers / Directors
d) Shareholders
e) Suppliers
These accounts are only relevant for ensuring compliance with company law. As it stands today, preparation of such accounts is an utter waste of resources.
I think there is a responsibility on the accounting profession acting together to reform this area to make the statutory accounts process more valuable.
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