Can a UK business draw up its accounts in euro?
A. A company’s accounts should accurately reflect the state of its business and the transactions it has undertaken. In particular, a company is legally obliged to prepare accounts that give a true and fair view. It will depend on the nature of the enterprise and the extent to which it carries on business in euro, and has assets and liabilities denominated in euro, whether euro accounts will present such a true and fair view. You should talk to your accountant before taking any steps to keep financial records in a non-sterling currency, or to change the currency in which you prepare your accounts. You do not have to get clearance from HMRC to draw up accounts in euro, but you may need to compute the company’s taxable profits in sterling.
