Content of medium company abridged financial statements

The abridged financial statements of a medium company should be the same as the full statutory financial statements and therefore should include (at a minimum):

  • Directors’ report;
  • Directors’ responsibility statement;
  • Special auditor’s report;
  • Abridged profit and loss account (see table below for details):
  • Balance sheet;
  • Accounting policies; and
  • Notes to the financial statements


As noted, the profit and loss account can be abridged as follows:

Medium company abridged financial statements – exemptions from disclosing: Section(s)
‘Turnover’, ‘cost of sales’ and ‘other operating income’ may be extracted and combined and presented as one item under the heading ‘gross profit or loss’ (assumes Format 1 is applied) 354(5)
The notes to the financial statements, in relation to the above items, may also be abridged such that they are not separately identified in the notes. This also means that the information required to present particulars of turnover (Schedule 3, paragraph 65) need not be disclosed. 354(6)