Abridged Accounts Consent Letter to Members
IN LIGHT OF THE ECONOMIC CRIME & CORPORATE TRANSPARENCY ACT 2023, THIS TEMPLATE IS CURRENTLY UNDER REVIEW.
A small company (as defined by the Companies Act 2006) has the option to prepare and file abridged accounts if all the members (shareholders) unanimously consent to it.
This letter is the form of correspondence that a small company may wish to send to its members explaining abridged accounts and seeking their consent to the abridgement. This letter should be sent with a pro forma reply slip; this will encourage and assist the person in responding as promptly as possible to the company’s request for consent. Our template pro forma reply slip can be accessed in this subfolder.
The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 introduced the concept of abridged accounts. They are simplified accounts with a balance sheet containing a subset of the information that is included in a full balance sheet and likewise an abridged profit and loss account. The decision to abridge all or part of the accounts must be agreed by all the members.
Consent must be obtained each year and can only be made in respect of the preceding financial year. A continuing authority is not permitted. Consent should be obtained after the year end but before the financial statements are approved.
Abbreviated accounts may no longer be produced by a small company, meaning that companies must prepare and file the same set of accounts for its members as for the public record. Companies must decide at the point they are preparing their accounts whether or not to abridge them (or prepare micro entity accounts if they are within the relevant threshold).
This letter is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes. Wording in square brackets is optional. If it is required, then the brackets should be deleted and the wording within them retained. If the wording is not required, then it can be deleted.
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