Audit
Exemption
March
2004 |
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The
regulation implementing the increases in the small, medium-sized
and audit exemption thresholds was laid before Parliament
on 9th January 2004 and came into force on 30th January 2004.
The new thresholds apply to financial years ending on or after
30th January 2004. There is a two month delay to allow
shareholders a period in which they can consider whether they
wish to require the company in which they hold shares to obtain
an audit. |
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| The
new audit exemption threshold will take effect in relation to
financial years ending on or after 30th March 2004. |
| |
| The
DTI news release P/2004/18 confirms that a further 69,000 companies
will be exempt from the requirement to have their accounts audited,
following the increase in the threshold from £1 million
annual turnover to £5.6 million turnover. The measure
is expected to save companies at least £94 million a year.
In addition the news release states that the increase to the
EU maximum in turnover and balance sheet totals for small and
medium-sized companies will allow more SME's to take advantage
of the 40 per cent plant and machinery allowance providing a
cashflow benefit of nearly £400 million over the next
three years. |
| |
| For
small companies the threshold for balance sheet totals increases
to £2.8 million and for medium companies the thresholds
for turnover and balance sheet totals increase to £22.8
million and £11.4 million respectively. Please
see also the new changes to Financial
Thresholds April 2008
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Wolverton
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