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Disclosure of Subsidiaries' Registered Office Address

By Julia Penny

When Statutory Instrument 2015/980 was implemented, many of the points within it related to the inclusion of the small company disclosure regime. However, the SI went further than that and so perhaps you missed one of the changes primarily affecting large and medium-sized groups.

You will no doubt remember that there was a requirement for a parent to include details regarding its subsidiary entities. This included the country of incorporation or registered office if outside the UK, among other things, such as details regarding any subsidiaries not included in the consolidation and the numbers of shares held.

However, the notes must now state the name and address of the registered office, regardless of whether it is within or outside the UK. It is this address which is often missing, perhaps being overlooked as the disclosure checklist requirement sounds similar to the old requirement, when in fact it has changed.

This small example of a missing disclosure is also evidence of a wider problem with the use of checklists, particularly in these early years of FRS 102. It is vital that a checklist is used, as to remember all the requirements is surely an impossible feat. But more than being used, it must be used properly. So first of all, the tailoring must be correct – it will not be effective if a (perhaps very junior) member of the team has said “no” or “”N/A” against a raft of what should be applicable requirements. Secondly, assuming the tailoring is correct, sufficient time must be budgeted to allow the questions to be read properly and checked carefully against what is in the accounts. Finally, it may be helpful to use a checklist in conjunction with model accounts, as whilst these do not necessarily give all of the possible disclosures, they can help the user understand what is needed.

Given that we will all have been unfamiliar with FRS 102 and the revised Companies Act requirements in the first year of application it makes sense, in my view, to complete a full checklist in the second and even also the third year of application of the new rules. This way we are more likely to pick up on those disclosures that were missed first time around.

Follow me on twitter @JSPenny 

June 2017 


This article is published with the understanding that SWAT UK Limited is not engaged in rendering legal or professional services. The material contained in this article neither purports, nor is intended to be, advice on any particular matter. This article is an aid and cannot be expected to replace professional judgment. SWAT UK accepts no responsibility or liability to any person in respect of anything done or omitted to be done by any such person in reliance, whether sole or partial, upon the whole or any part of the contents of this article.