UK accounting regulation changes: disclosure of subsidiary entities
Technical update

UK accounting regulation changes: disclosure of subsidiary entities

13 August 2015

Our UK Corporate Secretarial expert outlines accounting regulation changes implemented on 6 April 2015, that affect how disclosure of subsidiary entities are dealt with.

Section 409 of the Companies Act 2006 (CA 2006) requires all companies to disclose information related to undertakings such as:

  • general information about subsidiary undertakings
  • holdings in subsidiary undertakings
  • financial information about subsidiary undertakings
  • shares of company held by subsidiary undertakings
  • significant holdings in other undertakings
  • membership of certain undertakings
  • the parent undertaking and ultimate parent company.

Prior to 1 July 2015 a parent company had the option to show a full list of its subsidiaries in its annual report, or to take advantage of section 410 of the CA 2006, which allowed parent companies to provide more limited information on undertakings in the notes to the annual report (where there are numerous related undertakings and the directors believed that full disclosure would result in information of excessive length), and permitted full information on the related undertakings to be submitted with the next annual return.

Pursuant to The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015, for accounts signed on or after 1 July 2015, this option will be removed and the full list of subsidiaries will be required to be produced in the annual report.

Action: Ensure that the full list of subsidiaries are disclosed in the annual reports approved on or after 1 July 2015.

Need further information? Contact our Corporate Secretarial experts in the UK

Receive more news like this straight to your inbox by signing up to our eAlerts.

Written by

Fahmeda Khair

Graduate trainee in the UK Company Secretarial team

Insights and updates delivered to your inbox.

Sign up to receive a weekly round up of posts that matter most to you. 

Sign up now