Equity Communications

Tel: 0121 434 5057

  • Home
  • About Us
  • Board Evaluations
  • Regulatory Compliance
  • Clients and Case-Studies
  • Noticeboard
  • Blog
  • Contact Us

Defining ‘Materiality’ in Group Accounts

18th January 2016 1 Comment

A FTSE100 Company Secretary writes...

When disclosing our list of related undertakings in the Notes to the Group Accounts, Schedule 4 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 makes reference to an exemption where the entity is not considered material. Namely, significant holdings in undertakings other than subsidiary undertakings and membership of certain undertakings. The term ‘materiality’ is not defined in the Companies Act 2006 and I would like to know how other companies have determined ‘materiality’ when deciding which entities to include?

Leave a Reply Cancel reply

Only your comment and indication of company type will be published

Comments

  1. said

    19th January 2016 at 1:54 pm

    A FTSE 250 Company replied: We look at the nature of the transaction which is taking place. It’s one of those disclosures where for a change it is not always based on the amount of the transaction. So, for example, if we have a transaction with a common director, which is not in the normal course of business, we would disclose this as a RPT. On the other hand, if we have a transaction which is at arms’ length and on typical market terms, we wouldn’t necessarily disclose this as a RPT. It is a fairly judgemental disclosure in this case too and if there was anything potentially contentious we would also run this by our auditors.

    Sections

    • Home
    • About Us
    • Board Evaluations
    • Regulatory Compliance
    • Clients and Case-Studies
    • Noticeboard
    • Blog
    • Contact Us

    Recent Notices

    • TCFD advisors / agencies

      TCFD advisors / agencies

      2nd May 2022
    • Board portals

      Board portals

      2nd May 2022
    • E-learning training platforms for Group employees

      E-learning training platforms for Group employees

      30th April 2022
    • Permissions to Deal when transferring shares to an ISA

      Permissions to Deal when transferring shares to an ISA

      13th March 2022
    • Shareholder mailing preferences

      Shareholder mailing preferences

      22nd February 2022

    Contact Equity Communications

    Address:

    The Lodge,
    88 Katherine Road,
    Birmingham,
    B67 5RF

    Registered in England and Wales No. 04951030.

    • Blog
    • UK Board Evaluations
    • UK Corporate Governance

    © 2022 · Equity Communications 2015 ·· Site Designed & Built by Midland Web Solutions