Companies Act 2014 section 323

Information on arrangements not included in balance sheet

Section 323 requires companies to disclose off-balance sheet arrangements in the notes to their statutory financial statements, where those arrangements give rise to material risks or benefits that are necessary for assessing the company's financial position.

• Companies must disclose the nature, business purpose and financial impact of any off-balance sheet arrangements in the notes to their statutory financial statements, provided the risks or benefits are material and necessary for assessing the company's financial position.
• Small companies regime entities are exempt from disclosing the financial impact of such arrangements, while micro companies regime entities are fully exempt from these disclosure requirements.
• Holding companies preparing group financial statements must include equivalent disclosures covering off-balance sheet arrangements of both the holding company and any subsidiary undertakings included in the consolidation.
• Where a holding company has already disclosed the required information in its group financial statement notes, it does not need to repeat that information in the notes to its own entity financial statements.