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The balance sheet (and if appropriate, the directors' report) must contain a statement that the accounts are prepared in accordance with the special provisions in Part VII of the Companies Act 1985 relating to small or medium-sized companies, as the case may be.
For financial years beginning on or after 1 April 2005*, certain exemptions are available for small and medium-sized companies which fall into this category.
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Small Companies may omit certain information from the directors' report prepared for its shareholders (that is, amount to be paid as dividend, business review, statement of market value of fixed assets where substantially different from the balance sheet amount, miscellaneous disclosures and employee involvement) and the company need not deliver the directors' report to Companies House.
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Medium-sized companies may omit certain information from the business review in its directors' report (that is, analysis using key performance indicators so far as they relate to non-financial information).
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