What is the difference between a Confirmation Statement and an Annual Account?

In this Creditforum blog, you will be coming across two documents which might seem similar, and any Lehman can use those words interchangeably. But both serve fairly distinct purposes.

The documents are Confirmation Statement and Annual Accounts.

Lets take a deep dive into them one by one and understand the differences and why both of them are necessary.

The confirmation statement (Companies House form CS01) is used to ensure that vital company data registered at Companies House is still true on a specific date.

If any details on file are wrong or are outdated when the confirmation statement is due, the business should provide the correct information prior to or with the statement’s delivery.

Contents of Confirmation Statement-

• Site of the company’s statutory registries.

• Names of all shareholders

• Statement of Capital

• Main business operations.

• Shares held by all shareholders

• The business’s total number of shares and their aggregate nominal value.

• The total unpaid amount on the shares, if any.

Furthermore, you must present the following for each class of shares:

• Prearranged details of the rights linked with the shares.

• The total number of shares in the class and their trade standing.

• Individuals with considerable control, or PSCs

• The total nominal value assigned to shares of that class.

Annual Accounts, often known as financial statements, financial reports, or accounting statements, depict a company’s accounting and represent its economic structure.

The financial statements consist of:

• Balance Sheet,

• Notes to the financial statements,

• Profit & Loss account,

• Cash flow statements

The Capital Companies Act obliges the directors of companies to prepare annual accounts in the three months following the date of their closing. These shall include the management report, consisting of the statement of non-financial information, when applicable, the proposed profit allocation, and the consolidated accounts and management report.

Publicly available information in the annual accounts can be viewed by anybody. For example, potential investors may have access to it.