UK-registered companies that access emergency bailout funding need to record that fact in their next and subsequent annual accounts, according to financial journalists at Private Eye.
This needs to happen until any taxpayer funds have been repaid, it said. The ‘In the City’ report also stressed that justification for the support should also be stated, along with it use.
It went on: “For listed companies, the larger the support, the more detail to be recorded. For private companies, this reporting should begin for any accounting period after December 2019. For listed companies, it should start from any financial statements issued after 31 March.”
So, how would this work? PE suggested a section in the directors’ report could record any support provided in terms of guaranteed loans and staff or property costs. More detail could then be provided in the specific notes to those accounts relating to staff costs, creditors, borrowing, contingent liabilities and post-balance sheet events.