UK Accounting Glossary
Shortened but audited financial statement that a qualifying small or medium firm was allowed to file with registrar of companies in the UK.
Formerly, a shorter form of annual accounts that could be filed by a company qualifying as a small company under the Companies Act. The use of abbreviated accounts could cut costs and save time. It could also minimise the information made available to others, especially business competitors.
Under the new EU Accounting Directive, which became binding for financial periods beginning on or after the 1st January 2016, the use of abbreviated accounts is no longer possible. Small companies do, however, have the option of filing abridged accounts.
Small companies essentially file what is prepared for its members, being full accounts or Abridged accounts. The filleted option allows small companies to file the copy of the accounts they prepare for members, omitting the Income statement and related notes and/or the Directors report.
The abbreviated accounts are what tends to be submitted to Companies House. These are essentially a summarised version of the full accounts. The abbreviated accounts include the company balance sheet and a reduced number of notes to the accounts.