Proposals to simplify the financial and corporate reporting requirements for small businesses are the subject of a
published by the Department for Business, Innovation and Skills and the Financial Reporting Council.
"Simpler Reporting for Smaller Businesses" sets out ideas to reduce the amount of reporting micro-entities (a company with a turnover of less than €500,000, with net assets of less than €250,000 and employing fewer than 10 people) would be required to undertake. This, the Government reckons, could benefit around 5 million businesses and result in considerable cost savings in relation to the preparation of their accounts.
The paper proposes that micro-entities are only required to file a simplified Trading Statement (in place of the current Profit and Loss account), a simplified Statement of Position and a simplified Annual Return. The paper also proposes developing an integrated software package to help small businesses prepare financial information.
Written responses to the proposals should be provided by 30 October 2011.