Companies Act 2014 section 407

Transitional provision — companies accounting by reference to Sixth Schedule to Act of 1963

Section 407 provides a transitional arrangement allowing existing private companies to continue preparing their financial statements under the old Sixth Schedule rules from the Companies Act 1963 for a financial year that straddles the commencement of the Companies Act 2014.

• Directors of an existing private company may opt to prepare and approve financial statements under the Companies Act 1963 and its Sixth Schedule for an eligible transitional financial year
• The transitional provision applies only where the financial year began before the commencement of this section and ends after it
• The company must have been one that was already entitled to use the Sixth Schedule format rather than the Companies (Amendment) Act 1986 format
• All obligations and rights under the Companies Act 2014 that flow from the approval of financial statements apply equally to statements prepared under this transitional arrangement