Preparer of financial statements

[Dave A]

I'll consult an expert and see what he says..

Probably no need. After a little reflection, I expect eitnob is right.

If you provide management accounts, you need only disclose as per option "cc) have not been audited or independently reviewed;" to comply.

[CLIVE-TRIANGLE]

Just some feedback chaps.
I consulted three CA's. Two are involved with development of compliance software for practitioners, and the third is in practice.

The general consensus is that on the face of it, so-called "management accounts" are excluded.

But (isn't there always a but?), included in the definitions is the last item:

"d) financial information in a circular, prospectus or provisional announcement of results, that an actual or prospective creditor or holder of the company’s securities, or the Commission, Panel or other regulatory authority, may reasonably be expected to rely on;"

The prudent opinion is that when, for example, a bank calls for management accounts and the client has a facility, whether used or not, the bank is "an actual or prospective creditor", then they conceivably fall within the definition. Not to mention "or holder of the company's securities", which is of course any shareholder.

The advise is to always include a report or statement that states that the accounts were prepared for the internal use by managers of the enterprise, that they have not been audited, nor reviewed and do not satisfy any accounting standard and should not be relied on as a basis for any financial decision. Words to that effect. There is general agreement that the act could have been better worded.

Bottom line is do not let yourself, as preparer or submitter, be held liable by someone suffering loss and who now claims he made a decision based on those accounts.