Every company's balance sheet should include the items listed in either of the balance sheet formats outlined in the regulation, the same applies to the profit and loss account. These items should be displayed in the same order and under the same titles as given in the chosen format.

There is no obligation to use the same letter or number assigned to an item in the official formats in your company's balance sheet or profit and loss account.

Once a company has chosen a balance sheet format in a financial year, the directors of the company should continue using that format for following financial years, unless there are special reasons to change. If a change is made, reasons and details for it must be given in a note to the financial statements in which the new format is first used.

• Any item listed in the balance sheet or profit and loss account can be shown in greater detail than required by the chosen format.
• The balance sheet or profit and loss account can contain an additional item that represents any asset, liability, income or expenditure not covered by the format. However, certain expenses like preliminary expenses, costs of share or debenture issuances, and costs of research cannot be treated as assets.
• They may include subtotals for clarity of financial position.
• If an asset or liability is related to more than one item, its relation to other items shall be disclosed either under the item where it is shown or in the notes.
• The opening balance sheet for each financial year must match the closing balance sheet of the previous financial year.

For each item shown on the balance sheet or profit and loss account, the corresponding amount for the previous financial year must also be shown. If the previous year's amount isn't comparable to the current year's, it can be adjusted. But then, details and reasons for the adjustment must be provided in a note to the financial statements.

If there is no amount to be shown for an item in the current financial year, its heading should not be included in the balance sheet or profit and loss account, unless there was an amount for this item in the previous financial year. In this case, the previous year's amount should be shown.

Amounts related to asset or income items can't be offset in the financial statements against amounts related to liabilities or expenditures and vice versa, unless this is in line with applicable accounting rules, and gross amounts are disclosed in a note.

The formats provided for financial statements include a list of items with specific headings. The number after an item or heading refers to a note at the end of the formats.

• The heading of each note mirrors the required heading for the item and refers to any letters and numbers assigned to that item in the formats
• If a reference to a format is made, it refers to the corresponding balance sheet format

There are two formats provided:

• "Format 1" includes categories such as Called up share capital not paid, Fixed assets, Current assets, Prepayments and accrued income, Creditors amounts due within and after a year, Provisions for liabilities, Accruals and deferred income, and Capital and reserves.
• "Format 2" breaks it down into "Assets" and "Capital, reserves and liabilities".

In Format 2, Creditors amounts due within one year and after one year must be shown separately.

The format for profit and loss account includes categories like Turnover, Other income, Consumption costs, Staff costs, Value adjustments, Other expenses, Tax, and Profit or loss.