Companies (Auditing and Accounting) Act 2003

Amendment of Act of 1990 — new section 205A.

41.—The Act of 1990 is amended by inserting the following in Part X after section 205:

“Accounting standards.

205A.—(1) In this section—

‘accounting standards’ means—

(a) statements of accounting standards, and

(b) any written interpretation of those standards,

issued by any body or bodies prescribed by regulation;

‘relevant undertaking’ means—

(a) a company, or

(b) an undertaking referred to in Regulation 6 of the 1993 Regulations,

but does not include a company or an undertaking of a class exempt under section 48 (1)(j) of the Act of 2003 from this section.

(2) Each relevant undertaking shall ensure—

(a) that its annual accounts and, where relevant, its group accounts include a statement as to whether they have been prepared in accordance with applicable accounting standards, and

(b) that any material departure from applicable accounting standards, the effect of the departure and the reasons for it are noted in the annual accounts and, where relevant, in the group accounts.

(3) Accounting standards are applicable to a relevant undertaking's annual accounts and, where relevant, to its group accounts, if those standards are, in accordance with their terms, relevant to its circumstances and those accounts.

(4) Where a relevant undertaking fails to comply with subsection (2), each company or other entity that forms all or part of that undertaking is guilty of an offence.”.