Business & Commercial Terms with "A"

Glossary of Business & Commercial - Glossario Società & Commerciale

A | B | C | D | E | F | G | I | L | M | N | O | P | Q | R | S | T | V | W

Abbreviated Accounts: a shorter form of annual accounts filed at Companies House by a company qualifying as a small or medium-sized company under the UK Companies Act. The use of abbreviated accounts minimizes the information made such as profit, loss and turnover.

Accountant: a reporting accountant is either any member of a body listed below who, under the rules of that body, is entitled to engage in public practice, and who is eligible for appointment as a reporting accountant; or any person, (whether or not a member of any such body), who is eligible for appointment as a company auditor under the rules of that body. The bodies referred to are:

  • Institute of Chartered Accountants in:

- England and Wales;

- Scotland;

- Ireland;

  • Association of:

- Chartered Certified Accountants;

- Authorised Public Accountants;

- Accounting Technicians /International Accountants;

  • Institute of:

- Management Accountants;

- Chartered Secretaries and Administrators.

An individual, body corporate or firm may be appointed as a reporting accountant. A partnership that is not a legal person may be appointed under section 26 of the Companies Act 1989. The reporting accountant must be independent and meet the conditions set out in section 27 of the Companies Act 1989. This means, for example, that he or she cannot be an officer or employee of the company.

Accounting Reference Date: the annual anniversary upon which a company´s financial year ends.

Accounting Reference Period: the period which ends on the accounting reference date.

Accounts: a generic term for the financial documents that companies in the UK are required to file each year. Most companies filings will include a Profit & Loss account, a Balance Sheet, a Director´s Report and Auditor's Statement. Companies that do not file accounts on schedule incur fines from Companies House on a sliding schedule, and will eventually be dissolved if they do not comply. Please see Company Filing Requirements for more information.

Administration Order: the order of a court to appoint an administrator to manage a company in financial difficulties in an attempt to secure its survival or winding-up. For more about administration and getting your money back, visit the In Administration page.

Allotment of Shares: the distribution of shares to those who have applied for them. When shares are allotted, the holder of the shares becomes a member of the company.

Alternate Director: someone appointed by the board members to act and speak on their behalf during temporary absence.

Annual Accounts: all limited and unlimited companies, whether or not they are trading, must keep accounting records. Certain information may be omitted from the accounts of medium-sized and small companies. Please see Annual Accounts for more information.

Annual General Meeting (AGM): the one meeting of company members that has to be held each calendar year unless it has elected not to do so. Annual meetings of a company´s shareholders to lay the annual accounts and directors´ and auditors´ reports before the shareholders and deal with other matters. Private companies can dispense with the need for AGMs by passing elective resolutions.

Articles of Association: the rules of the company - its written constitution, the document containing the company´s regulations for its internal management.

Assets: anything owned with monetary value. This includes both real and personal property.

Audit: an audit is the official inspection of a company´s accounts by a qualified accountant as required by Companies House each year to ensure that the company balance sheet reflects the true state of its affairs.

Auditor: the specially qualified person or firm appointed by the company to examine its books of account and issue a report which accompanies the statutory annual accounts - and to report on them to company members.

Authorised Capital: the total amount of share capital that a company is allowed to issue.

Authorised Share Capital: the total number (and value) of shares a company is legally entitled to issue - the nominal capital which the company is authorised to issue by its memorandum of association. This may be increased by an ordinary or special resolution depending on the provisions of the articles of association.