The Small Companies (Micro-Entities’ Accounts) Regulations 2013 were approved by the UK Government in November 2013 and introduce major (but optional) accounting exemptions for micro-entities.
In response, the Financial Reporting Council (FRC) issued amendments to the Financial Reporting Standard for Smaller Entities (FRSSE) enabling micro-entities taking advantage of the exemptions to continue to prepare financial statements that are in compliance with the FRSSE.
In July 2015, the Financial Reporting Council (FRC) published a new standard, FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime for use by those micro-entities choosing to adopt this simpler regime.
Which company qualify as micro-entity?
A micro-entity must meet at least two of the following conditions:
- turnover must be not more than £632,000
- the balance sheet total must be not more than £316,000
- the average number of employees must be not more than 10
For qualifying as mico-entity, to know more about micro-entity exemptions
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