Companies Act 2014 section 275

Interpretation (Part 6): other definitions and construction provisions

Section 275 provides the key definitions and interpretation rules used throughout Part 6 (Financial Statements, Annual Return and Audit) and Part 26 of the Companies Act 2014.

• Defines essential accounting and financial reporting terms such as turnover, net assets, balance sheet total, accounting standards, and equity share capital
• Establishes company size categories (micro, small, medium, and large) and identifies "ineligible entities" that cannot avail of certain reporting exemptions
• Extends the concepts of subsidiary, holding company, and wholly-owned subsidiary beyond corporate bodies to include partnerships and unincorporated bodies (collectively called "undertakings")
• Clarifies how references to shares, derivative financial instruments, and terms from the EU Accounting Directive should be interpreted in this Part

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