AA02 Dormant Companies form - shareholder's fund?

vantablack

Afternoon all,


Quick question - I have a small company (brewery) that never actually traded. It was 'active' in the sense that I was doing stuff with setting it up for a few years (2014-2015) but since then has sat idle, bank account closed, etc.


Since founding I've filed Micro Entity accounts but it struck me that for the past few years nothing has happened and I'm pretty sure it meets Companies Houses' definition of Dormant, so I'm trying to file AA02 Dormant Company accounts at the moment.


I'm just puzzled by Issued Shared Capital and Shareholder's Fund - as I've issued no shares in the past few years I assume 'Issued Shared Capital' is for the current accouting period (so zero) and the previous period (so also zero). However is the Shareholder's fund the value of the total amount of shares issued since day 1, so £1,000 (100 ordinary shares at £10 each issued back in 2014) or is it also zero as it's just for this accounting period?


Thanks for any advice!


Andrew.

Aquamania

vantablack wrote: »

Afternoon all,


Quick question - I have a small company (brewery) that never actually traded. It was 'active' in the sense that I was doing stuff with setting it up for a few years (2014-2015) but since then has sat idle, bank account closed, etc.


Since founding I've filed Micro Entity accounts but it struck me that for the past few years nothing has happened and I'm pretty sure it meets Companies Houses' definition of Dormant, so I'm trying to file AA02 Dormant Company accounts at the moment.


I'm just puzzled by Issued Shared Capital and Shareholder's Fund - as I've issued no shares in the past few years I assume 'Issued Shared Capital' is for the current accouting period (so zero) and the previous period (so also zero). However is the Shareholder's fund the value of the total amount of shares issued since day 1, so £1,000 (100 ordinary shares at £10 each issued back in 2014) or is it also zero as it's just for this accounting period?


Thanks for any advice!


Andrew.

Issued Share Capital and Shareholder's Fund is the same whether for dormant accounts or otherwise.

The Issued Share Capital is the nominal value of the shares issued in the company, and currently held by shareholders - ever. (not just any change over the last financial year)

Similarly, the Shareholders Fund is the amount of equity in a company, which belongs to the shareholders. That would usually be the nominal value of the Issued Share Capital, plus any retained profit (if any) within the company. It represents the theoretical amount shareholders would receive if the company were to be liquidated.

So in your case, the Issued Share Capital is indeed £1000 (being 100 shares at £10 each), assuming they were all issued to shareholders.

The Shareholders Fund would also likely be £1000 unless there was any retained profit brought forward from last year.
(obviously, if the company were not dormant, then there would probably be retained profit too, brought forward from last year and/or made this year)

vantablack

Fantastic - thanks for that very clear and comprehensive reply