Which accounting framework?

There are too many accounting framework around IFRS, IFRS for SMEs, FRSSE, FRS 102 and others,  all creating a confusing mess.

I have listed below a simply the applicable frameworks:

Company type Accounting framework
Micro company       ie. Turnover below £632,000 per annum1 FRS 105
Small Companies    ie.  Turnover below £10.20 million per annum1 Section 1A Small Entities of FRS 102
All others FRS 102
Listed Companies IFRS

Where an entity prepares its financial statements in accordance with an accounting framework , a statement of compliance needs to be included in the notes.

Notes :

  1. Other criteria also apply like number of employees and balance sheet total.

Further reading:

  1. Visit FRC website and search for financial reporting framework.

HMRC – How to make a dormant company active

HMRC guidance states that this can be done via online service but I could not find an option to do it.

Finally on calling them they informed that I need to send a letter to:

Corporation Tax Services,


Sample letter below:

Corporation Tax Services,


10th Jan 2017

Dear Sirs,
Sub: Company now Active

Unique Taxpayer Reference (UTR): 6666 6666 66
Company Name: THE ABC LTD
Company Number: 09000000

Please make the above mentioned company ACTIVE in your records. The company started trading from 5th Oct 2015.

Please can we request you to make the following accounting period live to enable us to file the tax return:

Period: 1st Oct 2015 to 30th September 2016.

In case you have any questions, please do not hesitate to contact us. We are their HMRC Agent. Our Corporation Tax Agent Reference is: H2102A


Yours faithfully,

Business valuation : Rule of Thumb

Often this question crops up in business discussions about how to value a business.

Every industry has its own way of valuing. Actual valuation is ultimately a matter of negotiation but some bench mark is needed as a guide post for both parties to start negotiations.

Like in our own accounting business : value is usually 110% of the annual revenues.

I came across a gem during my recent studies, have a look via link below:

This gives a basic rule of thumb used in valuing different businesses.