Abridged Accounts Consent Letter to Members
PLEASE BE AWARE THAT THE ECONOMIC CRIME & CORPORATE TRANSPARENCY ACT 2023 IS BEING IMPLEMENTED IN PHASES AND MAY CHANGE THIS TEMPLATE.
A small company (as defined by the Companies Act 2006) may prepare and file abridged accounts if all members (shareholders) unanimously consent.
Purpose of this member consent letter for abridged accounts
This letter is intended to be sent to members to explain abridged accounts and to request their consent to abridgement for the relevant financial year.
It is typically used alongside a pro forma reply slip to make it easier for members to respond and to help the company gather evidence of unanimous consent.
What are abridged accounts?
The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 introduced abridged accounts. Abridged accounts are simplified accounts, with a balance sheet containing a subset of the information in a full balance sheet and an abridged profit and loss account.
The decision to abridge all or part of the accounts must be agreed by all members.
When to send this letter and request consent
Use this letter where the company is considering preparing abridged accounts and needs to obtain unanimous member consent.
- Consent must be obtained each year and may only be given 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.
- Companies should decide, at the point they are preparing their accounts, whether to abridge them (or prepare micro entity accounts if they are within the relevant threshold).
Related point: abbreviated accounts and micro entity accounts
Abbreviated accounts may no longer be produced by a small company, meaning companies must prepare and file the same set of accounts for members as for the public record.
Abridged Accounts Consent Letter to Members is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.