Micro Entity Accounts can be prepared by small Limited companies that are non-charitable, which meets at least two of the following conditions:
- Turnover < £632,000
- Balance Sheet < £316,000
- Employees < 10
Key Points to note:
- Significantly reduced disclosure requirements.
- The company will still need to comply with the accounting standards
- Some key accounting differences e.g. accounting for market value
We recommend not to prepare Micro Entity accounts, as we consider the additional disclosure currently reported to be useful information to our clients. Contact us to find out if Micro Entity Accounts are right for your business.
Future Issues:
- Major financial reporting changes in the near future
- Potential increased disclosures and different accounting treatments
- Micro Entities may be preferable
Watch this space for further development……