GIM2070 - Accounting framework: interaction of International Accounting Standards and Schedule 9A Companies Act 85

With effect from 1 January 2005, all UK listed companies are required to use IAS when preparing consolidated accounts. In addition, the UK has exercised its option under the EU Directive to extend this as an option to unlisted companies and to the production of individual accounts. UK listed companies are therefore permitted to use IAS in individual accounts and at subsidiary level. Non-listed UK companies are permitted, but not required to use IAS at both consolidated and individual (and subsidiary) level.

The requirement to follow the accounting format laid down in Schedule 9A of the Companies Act 1985 is set out in section 255(2) CA 1985. However, insurers no longer have to do so where they move to IAS, Section 255(4B) CA 1985, introduced by SI2004/2947 states: “[Section 255] does not apply to…insurance companies that prepare IAS individual accounts." Nevertheless, the ABI SORP is based on Schedule 9A and insurance company accounts are likely to remain in a Schedule 9A format until Phase II of the IASB’s project lays down a new standard for insurance contracts.