Statutory accounts are also known as annual accounts or year end accounts. They comprise of a set of financial reports prepared at the end of each financial year. All private limited companies are requested to prepare statutory accounts to submit to Companies House.
Statutory accounts in the UK must be fully compliant with IFRS or the UK GAAP. These will typically include;
Balance sheet - which shows the value of everything the company owns, owes and is owed on the last day of the financial year.
Profit and Loss - which shows the company's sales , running costs, profit or loss it has made over the financial year and the tax charge.
Notes to the accounts - which focus on key pieces of information that would be useful to any stakeholder in the business.
Directors report (unless you're a micro-entity) - produced by the board of directors and outlines the financial accounts position of the company.
Auditors report - you may not need to get an audit of your limited companies annual accounts. The deciding factors are based on turnover, value of assets or number of employees.
Some companies do not need to file full statutory accounts and may not be required to provide certain reports. Three types of businesses are subject to different rules when it comes to annual accounts; small companies, micro-entities and dormant companies.
Your company is considered small if it has at least two of the following;
Micro-entities are very small companies. Your company will be a micro-entity if it has and two of the following;
Your company is called ‘dormant’ by Companies House if it’s had no ‘significant’ transactions in the financial year that you’d normally report. Significant transactions do not include: