Financial Statement Presentation
The Companies Act 2014 (the Act) has introduced a number of updates and changes to financial reporting requirements that will impact financial statements from a presentational point of view. In this section, we will outline some of these changes.
The directors’ report and other matters relating to directors (directors’ remuneration, directors’ loans and guarantees, transactions with directors etc) are covered in separate sections, the links of which are available in the adjacent menu.
Whilst some of the requirements with regards to the presentation of information inserted into the Act are new, others introduce changes in terminology and impact the language of financial statements rather than adding new requirements to disclose additional information. Some of these changes are noted below:
|Previous legislation||CA 2014 language|
|Books of account||Accounting records|
|Statement of directors’ responsibilities||Directors’ responsibility statement|
|Year end||Financial year end|
|Pension costs||Retirement benefit costs|
CA 2014 summary of changes – terminology:
• Directors’ responsibility statement – previously the statement by the directors of their responsibilities was generally known as the “Statement of Directors’ Responsibilities”. However the wording of the statement under the Companies Act 2014 should be the “Directors’ Responsibility Statement”, which is required to reflect responsibilities under Companies Act 2014 and not those under Companies Acts 1963 to 2013.
• Terminology changes throughout