Mercer & Hole’s Business blog - Accounts & Audit
Bad debts for SME’s - recognise the early warning signs
Date: 3rd July, 2009 | Author: Julian Dobbin | Comments: 0
The lack of available finance in the economy has meant that businesses are increasingly looking to their suppliers for credit. The result of this for many SME’s is a build of trade debtors (and a wide range of excuses given to their credit controller). With this backdrop, it is fundamental for SME businesses to recognise the early warning signs of debtor problems – for example: industry rumours that the debtor is experiencing financial difficulties debtor’s sector adversely affected by macro-economic trends (such as those experienced by retailers over the last year) payment terms change...
Medium sized groups - consolidated accounts
Date: 3rd June, 2009 | Author: Paul Maberly | Comments: 0
Under the 1985 Companies Act, medium sized groups were exempt from preparing consolidated accounts. This exemption has been abolished in the 2006 Companies Act – effective for accounting periods beginning 6 April 2008. This means that a time consuming consolidation process needs to be undertaken for a new tranche of companies, causing more accountants in the UK to experience the usual problems with goodwill calculations, intra-group trading, translation differences etc. As a reminder, the size parameters for medium groups were changed to: Net turnover - £6.5m to £25.9m Gross turnover - £7.8m to £31.1m Net balance sheet - £3.26m...
Companies House late filing penalties increase
Date: 13th April, 2009 | Author: Cathy Corns | Comments: 0
Just as a reminder Companies House has now increased the penalties for late filing of accounts on or after 1 February 2009. It is the actual filing date which is relevant, not the original due date, i.e. accounts which were due before 1 February 2009 will still attract the new penalties if filed on or after that date. For private companies or LLPs, the penalty for filing up to a month after the due date will be £150 (increased from £100). But the penalty then escalates so that accounts more than six months late incur a penalty of £1,500. Full details can be...
Research & Development Allowances - Do you risk becoming large?
Date: 28th November, 2008 | Author: David Mansell | Comments: 0
HM Revenue & Customs have announced a change in their interpretation of research and development (“R&D”) allowances available to companies that cease to meet the criteria for small and medium enterprises (“SME”) during an accounting period. The current position is that a company which is an SME for any part of an accounting period will be treated as an SME throughout that period, irrespective of whether it merges its activities with other companies, or is bought by a large company, at some point during that year. The Revenue’s announcement effectively reverses this...
The European Commission to simplify the business environment… (3/3)
Date: 31st October, 2007 | Author: Gary Farnes | Comments: 0
Extended exemptions for certain medium-sized companies With the accounting environment currently buzzing with talk of deregulation, the new Companies Act 2006 and lower compliance costs, the European Commission have also joined the band-wagon. ...
The European Commission to simplify the business environment… (2/3)
Date: 30th October, 2007 | Author: Gary Farnes | Comments: 0
This blog follows on from my last post. As companies move between SME accounting thresholds, the reporting structure and contents of financial statements changes. ...
The European Commission to simplify the business environment… (1/3)
Date: 29th October, 2007 | Author: Gary Farnes | Comments: 0
The European Commission have recently published some documentation that is aimed to significantly simplify the business environment that EU companies face. They revolve around reducing reporting and auditing requirements for SMEs, simplifying disclosure requirements, and convergence....
Audit exemption limits… on the up?
Date: 12th October, 2007 | Author: Gary Farnes | Comments: 0
Draft regulations published by BERR (did you know this is the new name for the DTI?) have outlined increases in the size criteria for audit exemption. These are proposed to be effective for financial years beginning on or after 6 April 2008 ...
Pre Budget Report 2007 - Arctic Sytems
Date: 10th October, 2007 | Author: Cathy Corns | Comments: 0
Below is a brief update on the Arctic Systems case from Lisa Spearman, Mercer & Hole Partner and Tax Plus Blog contributor. An announcement has been widely expected and commented on in this and other blogs following on from the Revenue’s defeat in the House of Lords. This is a case of the dog that didn’t bark or at least not yet....
Other changes in the 2006 Companies Act
Date: 14th June, 2007 | Author: Gary Farnes | Comments: 0
I have previously ‘blogged’ about the impact of the new Act. I read the article below with interest earlier this week. It seems as though Directors are now obligated to have regard to several 'corporate social responsibility' aspects, including the likely ...
