I have been asked by a client (a partnership) to produce their annual accounts as I have done for a couple of years now; however they have been asked by their solicitor to ensure that their accounts are 'non-abbreviated'. Please can someone confirm for me that I am right in thinking this type of financial statement only applies to companies and LLP's?
Full accounts can (and in my mind should) be prepared for any type of business (All of my self employed clients get full accounts).
For companies, abreviated accounts are generally filed for smaller entities with Companies house but full accounts would still be prepared for filing with HMRC.
I assume that when you say solicitor they are perhaps going through a house purchase (?) in which case abreviated accounts would be wholly inappropraite for any type of business and would not be accepted by lenders.
Also worth noting that they will need two to three years worth of accounts (not just the current period comparatives) so if only abreviated accounts have been produced previously you may need to prepare full accounts for prior periods as well.
Also, not sure of your level of qualification but if this is for a loan there may be restrictions upon the level of accountant expected to have signed the accounts. (The level of qualification requirement varies from lender to lender so may be worth confirming with the clients solicitor that your qualification meets their requirements).
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
