We were at a recent training course about the latest (fascinating) developments in annual accounts requirements/disclosures. The introduction referred us to the attached accounts as our icebreaker. Suddenly the course became more entertaining !
This is a real set of accounts on public file at Companies House UK, and illustrates several things:-
Anything filed at CoHo is permanently there, so this document will be visible until global warming triumphs over mankind
This company never got going, but if it had how would the Note on page 4 have reflected on the reputation and status of the company?
When someone was negotiating with Mr. Chatterton what might they have concluded about his general business knowledge after checking his public record at CoHo?
The filer used electronic software - that allowed him to upload a file that is clearly inappropriate. The Note about Basis of Preparation is supposed to read something like "The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard)." The software is poorly written, as it should have trapped this text, and rejected the accounts on review.
This little file illustrates the perils of starting a company when you don't really understand what you are doing.
The gentleman actually explains why he started the company, he was negotiating some significant deals. If he had come to us, we would have formed his company, and set the basics up for £100, and for another £360 at the end of the year we would have filed some accounts that supported the business profile he was trying to create, and fobbed off HMRC and CoHo with the correct filings. And he would have been able to call us to discuss business queries, and benefit from 47 years of expertise as part of our support package.