Experiments: Top Tips for Abbreviated Accounts

For small companies without a P&L (aka abbreviated accounts that do not disclose profit), here are a few top tips that will help you successfully use the Experiments feature:

• You will need to check for values disclosed as 'Profit and Loss Movement reserve' which is provided in the Balance Sheet under 'Retained earnings'. 
  Once identified in the Balance sheet, simply subtract the 'Retained earnings' value for the current reporting period from the 'retained earnings' disclosed in the previous reporting period. Remember, if the result is a negative number please enter as a negative number in the experiments item 'P&L movement' to ensure an accurate score is calculated.
• If a loss is calculated in the P&L movement experiment item, the Company Watch System is unable to provide information on the exact reasons, but this loss could be due to:
  • • genuine operational loss or,
    • the company made a profit and paid out a large dividend or,
    • a combination of both factors.