Change in Reporting Related Undertakings in Company Accounts
The Companies Act 2006 requires companies to disclose certain information about their related undertakings in the notes to their annual accounts. There was an exemption to this obligation in the Act where such disclosure would result in disclosures of an “excessive length”. If a company took advantage of this exemption, it was required to annex the information to its next annual return. However, many companies failed to do so and accordingly new regulations have repealed the exemption. All related undertaking information must, therefore, now be disclosed in the annual accounts.
A copy of the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 can be read on the GOV.UK website. (PDF)