AI Tutor
Imagine running a local bakery and being forced to publish the exact same 300-page financial report as a multinational tech conglomerate.
To keep compliance fair, corporate law establishes tiered statutory reporting—the legal obligation for incorporated businesses to prepare and publicly file audited financial statements.
How do regulators decide which rulebook your business must follow?

Company Size Thresholds

Under the Companies Act 2006, a company's statutory reporting category depends on three metrics: annual turnover (revenue), balance sheet total (gross assets before deducting liabilities), and the average number of employees.
To qualify for a tier, a company must meet at least two out of three threshold criteria for two consecutive financial years.
Once a company knows its size category, how does it choose between national accounting rules and international standards?

The Reporting Frameworks

UK GAAP (Generally Accepted Accounting Practice) refers to the body of accounting standards published by the Financial Reporting Council, primarily centered on FRS 102.
In 2005, the European Union mandated that all publicly traded entities use IFRS (International Financial Reporting Standards)—a single global accounting language developed by the International Accounting Standards Board (IASB) to make cross-border investments transparent.
What components must actually be submitted to regulators, and which companies get a pass on external audits?