The government has announced key changes to company and LLP audit and reporting requirements. The changes remove the need for many more companies and LLPs to have an audit and apply to financial years ending on or after 1 October 2012.
The government has announced that:
- for small companies the audit thresholds will be aligned with small company accounting thresholds
- for qualifying parent companies and their subsidiaries that an option will be available to not have subsidiaries audited and instead for the parent to provide a statutory guarantee over their subsidiaries’ liabilities, and
- dormant subsidiaries will be exempt from the requirement to prepare and file accounts.
Whilst the changes have been marketed by the government as saving businesses millions in reporting and accountancy fees, there are, of course, a number of factors to consider in making a decision as to how to proceed.
Please contact us for guidance in this area.
Internet link: BIS response