Abbreviated Accounts
Definition
Formerly, a shorter form of annual accounts that could be filed by an entity qualifying as a small company under the Companies Act. Under the new EU Accounting Directive, which became binding for financial periods beginning on or after 1 January 2016, the use of abbreviated accounts is no longer permitted. Small companies do, however, have the option of filing abridged accounts.
Example
Example 1:
A small tailoring business in Kano used to submit a simplified version of their financials to the CAC, but just like the EU ruling, Nigerian regulators have also pushed for more transparent and complete financial reporting from businesses.
Example 2:
A small bakery in Manchester used to file abbreviated accounts with Companies House to save time and reduce paperwork, but since January 2016, they now file abridged accounts instead, following the new EU Accounting Directive.