Client Name Limited Unaudited Financial Statements Year/Period Ended Insert Date

Transcription

1 PRO FORMA FINANCIAL STATEMENTS SHAREHOLDERS FULL FINANCIAL STATEMENTS FOR A SMALL COMPANY PREPARING UNAUDITED FINANCIAL STATEMENTS IN ACCORDANCE WITH SECTION 1A OF FRS 102 Client Name Limited Unaudited Financial Statements These pro-forma financial statements have been prepared to show the requirements of company law as amended by SI 2015/980 The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 and Section 1A Small Entities of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, applicable for periods commencing on or after 1 January Early application of these requirements is permitted for periods commencing on or after 1 January For details of additional encouraged disclosures for companies adopting section 1A of FRS 102, see the A32 Accounts Disclosure Checklist. Further disclosures in order to show a true and fair view may also be required - see FRS 102 1A for further guidance. NB. ICAEW Audit Technical Release 02/10 suggests that the financial statements contain a reference to the fact that they are unaudited, either on the front cover or on each page (or both) of the financial statements. Company registration number: 09/16 2a-1 Audit Exemption, Section D

2 Financial Statements Contents Page Company Information Directors Report Accountants Report Profit and Loss Account Balance Sheet 09/16 2a-2 Audit Exemption, Section D

3 Company Information Company registration number Directors Secretary Registered office Accountants Solicitor Bankers 09/16 2a-3 Audit Exemption, Section D

4 Directors Report The directors present their report and the unaudited financial statements of the company for the year/period ended insert date. Directors of the company The directors who have served during the year were as follows: Third party indemnity provisions Political donations and expenditure Where donations/expenditure exceed 2,000 Disabled employees Where average number of employees exceeds 250 The report of the directors has been prepared taking advantage of the small companies exemption of section 415A of the Companies Act By order of the Board Signature Name, Secretary Date OR On behalf of the board Signature Name, Director Date 09/16 2a-4 Audit Exemption, Section D

5 Accountants Report See Section C of the manual for the relevant report 09/16 2a-5 Audit Exemption, Section D

6 Profit and Loss Account (Format 1) Note Turnover Cost of sales Gross profit / (loss) Distribution costs Administrative expenses Other operating income Income from fixed asset investments Interest receivable and similar income 4 Interest payable and similar expenses 4 Profit / (loss) before taxation Tax on profit / (loss) Profit / (loss) for the year / period. 09/16 2a-6 Audit Exemption, Section D

7 Balance Sheet (Format 1) Note Fixed assets Intangible assets 5 Tangible assets 6 Investments 7 Current assets Stocks 8 Debtors due within one year 9 Debtors due after more than one year 9 Investments 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets / (liabilities) Total assets less current liabilities Creditors: amounts falling due after more than one year 12 Provisions for liabilities Net assets / (liabilities) Capital and reserves Called up share capital 13 Share premium account Revaluation reserve 14 Other reserve Profit and loss account Shareholders funds / deficit These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.. [These annual accounts and reports have been delivered in accordance with the provisions applicable to companies subject to the small companies regime [and the option not to file the profit and loss account has been taken]] 1...[continued] 1 For filing purposes only where the directors report and / or profit and loss account is omitted. 09/16 2a-7 Audit Exemption, Section D

8 Balance Sheet (Format 1) For the year ending [date] the company was entitled to exemption from audit under [section 477] 2 [section 479A] 3 [section 480] 4 of the Companies Act 2006 relating to [small] 2 [subsidiary] 3 [dormant] 4 companies. Directors responsibilities: The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. The financial statements were approved and authorised for issue by the Board on Insert date approved. Signed on behalf of the board of directors Signature Name, Director Date The notes on pages Page to Page form part of these accounts. 2 For non-dormant small audit exempt companies. 3 For small qualifying subsidiary audit exempt companies. 4 For dormant audit exempt companies. 09/16 2a-8 Audit Exemption, Section D

9 1 Summary of significant accounting policies (a) General information and basis of preparation Client Name Limited is a company limited by shares / guarantee incorporated in England / Scotland / Wales / Northern Ireland within the United Kingdom. The address of the registered office is given in the company information on page 3 of these financial statements. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest 000. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. (b) Intangible assets - goodwill Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is insert detail years. Provision is made for any impairment. (c) Intangible assets - other Intangible assets acquired separately from a business are capitalised at cost. Intangible assets acquired on business combinations are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition. Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated. Intangible assets are amortised on a straight line basis over their useful lives. The useful lives of intangible assets are as follows: Intangible type Development expenditure Computer software Patents Customer lists Useful life years years years years Provision is made for any impairment. 09/16 2a-9 Audit Exemption, Section D

10 (d) Tangible fixed assets Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: Land Buildings Plant and machinery etc. Land and buildings were valued at insert date. [The valuation was undertaken by insert name and qualification on the insert detail basis.] (e) Investment properties Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in profit or loss. The methods and significant assumptions used to ascertain the fair value of movement of included in the profit / loss for the year / period are as follows: and fair value (f) Stocks Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. (g) Debtors and creditors receivable / payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. (h) Investments Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. The methods and significant assumptions used to ascertain the fair value of movement of included in the profit / loss for the year / period are as follows: and fair value Investments in joint ventures / associates are measured at cost less impairment. 09/16 2a-10 Audit Exemption, Section D

11 (i) Loans and borrowings Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. (j) Derivatives Derivative financial instruments are initially measured at fair value at the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss. The methods and significant assumptions used to ascertain the fair value of movement of included in the profit / loss for the year / period are as follows: and fair value The company uses derivatives to insert detail of nature and extent. Significant terms and conditions that may affect the amount, timing and certainty of future cash flows include: (k) Impairment Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. (l) Provisions Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. (m) Leases Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease. Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. (n) Tax Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. 09/16 2a-11 Audit Exemption, Section D

12 (n) Tax (continued) Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset. (o) Turnover and other income Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: Sale of goods Turnover from the sale of insert detail is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on insert detail (e.g. dispatch of the goods). Rendering of services When the outcome of a transaction can be estimated reliably, turnover from insert detail is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to insert detail. Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. Construction contracts When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to insert detail. Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. Interest and dividends receivable Interest income is recognised using the effective interest method and dividend income is recognised as the company s right to receive payment is established. 09/16 2a-12 Audit Exemption, Section D

13 (p) Government grants Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the performance/accrual model. (q) Foreign currency Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. (r) Employee benefits When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. [for defined contribution plans] The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. [for defined benefit plans] The company operates a defined benefit plan for the benefit of its employees. A liability for the company s obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. (s) Share-based payment The cost and corresponding increase in equity in respect of equity-settled share-based payment transactions with employees are measured by reference to the fair value of equity instruments issued at the date of grant. Amounts are expensed on a straight line basis over the vesting period based on the estimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions. The cost and fair value of the liability incurred in respect of cash-settled transactions is measured using an appropriate option pricing model with changes in fair value recognised in profit or loss for the period. 09/16 2a-13 Audit Exemption, Section D

14 2 Exceptional items During the year (20XX - ) of income / expenditure of exceptional size or incidence were recorded and related to insert details of nature. 3 Employees The average monthly number of employees, including directors, during the year/period was as follows: 20XY Number 20XX Number Employees 4 Interest a) Interest receivable and similar income From group undertakings Other b) Interest payable and similar expenses From group undertakings Other 09/16 2a-14 Audit Exemption, Section D

15 5 Intangible fixed assets Goodwill Other intangibles Total Cost: At start date 20XY Additions Disposals Amortisation: At start date 20XY Charge for the year Impairment Eliminated on disposals Net book value: At end date 20XX 6 Tangible fixed assets Cost or valuation: At start date 20XY Additions Disposals Revaluation Investment Land and buildings Plant and machinery properties etc Total Depreciation: At start date 20XY Charge for the year Impairment Revaluation Eliminated on disposals Net book value: At end date 20XX 09/16 2a-15 Audit Exemption, Section D

16 6 Tangible fixed assets (continued) Borrowing costs totalling (20XX - ) have been included in the cost of fixed assets. Tangible fixed assets held at valuation The historic cost equivalent of land and buildings included at valuation are as follows: Cost Accumulated depreciation Accumulated provision for impairment Net book value 20XY 20XX Fixed asset investments Cost or valuation At start date 20XY Additions Disposals Revaluation Shares in group undertakings and participating interests Loans to group undertakings and undertakings in which the company has a participating interest Other investments other than loans Other investments Total Impairment At start date 20XY Written off Written back Eliminated on disposals Carrying amount: At end date 20XX [The nominal value of the company s own shares included within other investments total (20XX - )]. 09/16 2a-16 Audit Exemption, Section D

17 8 Stocks Stocks Payments on account 9 Debtors Trade debtors Amounts owed by group undertakings and undertakings in which the company has a participating interest Other debtors Prepayments and accrued income includes (20XX - ) falling due after one year. 10 Current asset investments Shares in group undertakings Other investments [The nominal value of the company s own shares included within other investments total (20XX - )]. 09/16 2a-17 Audit Exemption, Section D

18 11 Creditors: amounts falling due within one year Bank loans and overdrafts Trade creditors Amounts owed to group undertakings and undertakings in which the company has a participating interest Corporation tax Other tax and social security Finance leases Other creditors Accruals and deferred income Payments on account (eg. bank loans and overdrafts) totalling (20XX - ) are secured by insert detail. 12 Creditors: amounts falling due after more than one year Bank loans and overdrafts Trade creditors Amounts owed to group undertakings and undertakings in which the company has a participating interest Corporation tax Other tax and social security Finance leases Other creditors Accruals and deferred income Payments on account (eg. bank loans and overdrafts) totalling (20XX - ) are secured by insert detail. (eg. bank loans) include aggregate amounts of (20XX - ) which fall due after five years and which are payable otherwise than by instalments / by instalments. 09/16 2a-18 Audit Exemption, Section D

19 13 Share capital Allotted Called up and fully paid 14 Revaluation reserve 000 At start date 20XY Revaluation of tangible fixed assets Deferred tax on revaluation of tangible fixed assets Transfers (insert detail) The tax treatment of items included above is insert detail. 15 Financial commitments Total financial commitments, guarantees and contingencies which are not included in the balance sheet amount to (20XX - ). Security on the above amount to (20XX - ) and takes the form of. Total pensions commitments which are not included in the balance sheet amount to (20XX - ). Total financial commitments, guarantees and contingencies undertaken on behalf of / benefit for insert details (eg. parent / subsidiary / fellow subsidiary / undertakings with a participating interest which are not included in the balance sheet amount to (20XX - ). 16 Events after the end of the period 17 Off-balance sheet arrangements 18 Directors advances, credits and guarantees 19 Related party transactions 09/16 2a-19 Audit Exemption, Section D