Notes to the Financial Statements

As well as the information required to be disclosed by Schedule 3 when applicable, which is outlined in Appendix 3, the main body of the Act (i.e. Part 6) requires certain note disclosures of other matters (sections 314 to 323). These are:

Disclosure required in notes to financial statements of other matters Section(s)
Information on related undertakings (including exemptions from disclosures and provisions for certain disclosures to be annexed to the annual return) 314 to 316
Disclosure of particulars of staff 317
Details of authorised share capital, allotted share capital and movements 318
Financial assistance for purchase of own shares 319
Holding of own shares or shares in holding undertaking 320
Disclosure of accounting policies 321
Disclosure of remuneration for audit, audit-related and non-audit work 322
Information on arrangements not included in balance sheet 323

Schedule 3 to the Act allows us to consider materiality (paragraph 80 of Schedule 3) when it comes to disclosing certain information but there is no such consideration of materiality in the main body of the Act. Therefore, there is no materiality criterion when dealing with matters in the body of the Act where it is a required disclosure. It is a matter for the directors of a company to decide how it should be presented.

The requirements of these sections are broadly the same as they were under previous legislation however there are additional requirements in some cases. These are expanded on in the rest of this topic: Companies Act Entity Financial Statements