Companies Act 2014 section 1116

Modification of definition of "IAS Regulation" in the case of PLCs

Section 1116 modifies how the definition of "IAS Regulation" applies to public limited companies (PLCs), changing the circumstances in which Article 5 of the IAS Regulation applies instead of Article 4.

• The standard definition of "IAS Regulation" in section 274(1) is adjusted when applied to PLCs.
• For PLCs, a reference to Article 4 of the IAS Regulation is read as a reference to Article 5 when the financial statements in question are entity financial statements or the company is not a traded company.
• This differs from the default rule in section 274(1), which substitutes Article 5 for Article 4 only in the case of private companies limited by shares.
• The effect is that PLCs which are not traded companies, or which prepare entity financial statements under IFRS, do so under Article 5 rather than Article 4 of the IAS Regulation.