Accounting Reference Date (ARD) – making changes
What is the accounting reference date? A company is required by law to prepare accounts for each financial year and the accounting reference date (“ARD”) determines when that year ends.
Can I change the accounting reference date using Kudocs? Yes – you can amend either the previous or current ARD (depending on whether the previous accounting period has been filed at Companies House yet). Like many other processes in Kudocs, you can either record this change (where the legal approval has already happened, and you just need to update the registers and notify Companies House) or you can perform the change by obtaining director approval using Kudocs, and once obtained, Kudocs will then automatically update Companies House and the Kudocs records. Always remember that an ARD is not actually changed until Companies House confirms the change. It is one of the few changes a company makes where Companies House approval is needed.
For more information on how to change the ARD using Kudocs, see here.
Are there rules on changing the accounting reference date? Yes, A company can change the ARD by bringing it forward (i.e. shortening the financial year), or by pushing it back (i.e. extending the financial year).
A company may not:
- Change the period for which the accounts are already overdue for filing;
- Extend the current accounting period more than 18 months (i.e. no more than 18 months since the start of the accounting period or date of incorporation), unless the company is in administration; or
- Extend the period more than once in five years unless it has special authorisation to do so.
- Shorten the ARD, to a date that is before the start of the current accounting period.
When does a change take place? The ARD change will only take place once confirmed by Companies House.