A new Statutory Instrument has been issued that amends the Companies Act 2006 in respect of accounts and audit exemptions for accounting periods ending on or after 1 October 2012. The new rules apply to companies and limited liability partnerships.

Audit thresholds for small companies have been aligned with accounting thresholds for small companies. Small companies will therefore be entitled to an exemption from mandatory audit if they meet two out of the three mandatory criteria:

• No more than 50 employees;
• No more than gross assets of £3.26 million;
• Less than £6.5 million in turnover.

There are also new exemptions from mandatory audit for certain subsidiary companies and dormant subsidiaries from preparing and filing accounts.

Changes also make it easier for companies who currently use IFRS(International Financial Reporting Standards) voluntarily to switch from IFRS to UK GAAP when preparing their accounts.

Is your year end 30 September 2012? Are you required to have an audit under the old rules but not the new rules? If so and you would be interested in not having an audit for the year to 30 September 2012, contact us.

For further details please contact us.