Companies Act 2014 section 1156

Division financial statement

Section 1156 sets out when a company involved in a division must prepare a division financial statement and prescribes the format, content, audit requirements, and exemptions that apply to that statement.

• A division financial statement is required where a company's latest statutory financial statements relate to a financial year ending more than six months before the date of the common draft terms of division.
• The statement must follow the format of the company's last annual balance sheet, comply with Part 6, and be drawn up as at a date no earlier than the first day of the third month before the draft terms of division.
• Valuations from the last balance sheet may only be changed to reflect entries in the accounting records, but interim depreciation, provisions, and material changes in actual value not recorded in the books must also be taken into account.
• The requirement is waived if the company publishes a half-yearly financial report for the first six months of its financial year under the relevant transparency regulations, or if all voting shareholders (and, where applicable, relevant security holders) unanimously agree to dispense with it.

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