Statutory Accounts

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Statutory accounts are the official annual financial statements a company is legally required to prepare and, in many countries, file with a government registry, following the applicable accounting standards and company law.

The term is widely used in the United Kingdom and other countries with similar company law. UK companies must file statutory accounts with Companies House each year, where they become publicly available. Larger companies must also have them audited.

Statutory accounts typically include a balance sheet, income statement, notes and, depending on the company's size, additional reports such as a directors' report. Small companies may be allowed to file simplified versions.

For example, a privately owned company with a few employees might file abridged accounts showing mainly a balance sheet, while a large private company must file full audited accounts.

Statutory accounts differ from management accounts, which are prepared for internal use, often monthly, in whatever format managers find useful and without legal requirements. Statutory accounts look backwards and follow strict rules, while management accounts focus on supporting decisions. Late filing usually brings automatic penalties.

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