More Companies To Be Exempt From Audit

From 1 October 2012, subsidiary companies will no longer need to have their annual accounts audited provided that, among other things, their parent company agrees to guarantee all liabilities of the subsidiary that are outstanding at the end of that financial year. In addition, companies that qualify as "small" for the purposes of preparing and filing accounts will automatically qualify for exemption from audit. And dormant subsidiaries will not even have to prepare and file accounts if, again, their parent company agrees to guarantee all their outstanding liabilities and certain other conditions are met. It will also be easier for companies to switch between UK GAAP and IFRS when preparing their accounts.