Definition: is a type of accounts that consist of a limited balance sheet that displays the assets and liabilities of a firm. Abbreviated accounts are adopted by small and medium-sized companies as a mean to keep their official records and in order to save time and money while keeping other vital information hidden from competitors. Records of this type contain assets like bank balances and equipment as well as liabilities such as loans and overdrafts. Additionally, the balance sheet presented in an abbreviated account allows partially estimating the net worth of a company.
In a Sentence:
Due to the recent changes in UK law, small companies no longer have the option to file an abbreviated account and have to look towards abridged accounts instead.
All operations regarding the preparation and submission of abbreviated accounts are conducted under the Companies House jurisdiction.
Synonyms and related words: abridged accounts, full accounts, detailed accounts, balancing accounts, financial statement