Guidance on accounting and reporting requirements of the Companies Act 2006
DBERR have issued a publication, "Guidance for UK Companies on Accounting & Reporting - Requirements under the Companies Act 2006 and the Application of the IAS Regulation, June 2008".
The main changes to the accounting requirements applicable to accounting periods commencing on or after 6 April 2008 are:
 The threshold for disclosure in the directors' report of political donations and expenditure and charitable donations has been raised from £200 to £2000. A new disclosure requirement for donations to independent election candidates has been introduced.
The option to include financial instruments in the accounts at fair value has been extended to cover any financial instrument that could be included under IAS adopted by the EU on or before 5 September 2006, provided that the necessary disclosures required by IAS are made.
The circumstances in which a company that has chosen to prepare its individual accounts using IAS rather than UK GAAP can switch back to UK GAAP have been extended to allow a company to switch back if it ceases to be a subsidiary undertaking.
The financial thresholds under which companies can qualify as small or medium-sized and under which small companies can qualify for exemption from audit have been increased. The limits for small companies and groups are turnover £6.5m net/£7.8m gross (from £5.6m/£6.72m) and total assets £3.26m net/£3.9m gross (from £2.8m/£3.36m). The limits for medium-sized companies/groups are turnover £25.9m net/£31.1m gross (from £22.8m/£27.36m) and total assets £12.9m net/£15.5m gross (from £11.4m/£13.36m).
The exemption for medium-sized companies from disclosing turnover in abbreviated profit and loss accounts delivered to the registrar of companies has been removed, although there is still exemption from disclosing detailed particulars of turnover in the notes to the abbreviated accounts.
There is a new requirement for large and medium-sized companies to disclose in the notes to the accounts the nature and business purpose of any off-balance sheet arrangements and for large companies to disclose the financial impact of these on the company.
There is a new requirement for large companies to make certain disclosures in the notes to the accounts about transactions with related parties (as defined in IAS 24) where these are material and have not been concluded under normal market conditions.
There is a new requirement for quoted companies to report in their directors’ remuneration report on how they have taken pay and employment conditions elsewhere in the company or group into account when setting directors' pay.
The regulations on Summary Financial Statements ("SFS") make specific provision for small companies that may wish to prepare SFS.
The regulations on SFS and defective accounts reflect the new provisions in section 146 of the 2006 Act on nomination of persons to enjoy information rights.
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