2.20 What is the effect on the financial statements of the selection that the entity is a DORMANT company?

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The following sections will be affected on selecting that the entity is a DORMANT company:

The following sections are skipped

  • Independent auditor's report

  • Statement of profit or loss and other comprehensive income

  • Statement of changes in equity

  • Cash flow statement

  • Additional information to the Statement of profit or loss and other comprehensive income

  • All references to ‘Dividends’

  • Letter of representations

  • Minutes of the AGM

Report of the Board of Directors
Reference is made in the principal activities that the company is dormant
The following parts are skipped:

  • Review of current position, future developments and significant risks

  • Dividends

  • Independent Auditor

Accounting policies
The following are skipped by default:

  • Revenue recognition

  • Impairment of assets

Notes to the financial statements
The following are skipped by default:

  • Financial risk management

  • Expenses by nature

  • Tax

Directors’ letter to the Registrar of Companies
This additional letter is prepared confirming that the Company is a small sized company