Books of Account Companies must keep proper books which show their business transactions and financial position on an ongoing basis.The accounts must record the day-to-day transactions and financial activity of the company. The accounts must show the purchases and sales of goods and services, stocks and work in progress as is appropriate to the nature of the business. It must be possible to […]
Overview of Statements Financial statements must be prepared in accordance with the requirements of Schedule 3 and 4 of the Companies Act, or in accordance with International Financial Reporting Standards and the relevant requirements thereunder. The profit and loss account and the balance sheet and their statutorily required notes are the financial statements under the 2014 Act. The 2014 Act […]
Alternative Frameworks Schedule 3 as amended provides for the form of Companies Act financial statement. The form and contents of the balance sheet, profit and loss account and the additional information to be provided by way of notes to the financial statements must comply with either Schedule 3 (other than for small and micro companies) comply with the applicable accounting […]
Group Accounts Where at the end of its financial year a company is a holding company, the directors of the company, as well as preparing entity financial statements for the financial year, shall prepare group financial statements for the holding company and all its subsidiary undertakings for that financial year. A parent need not prepare a profit and loss account […]
Substantial Shareholdings I Companies must disclose in the notes to their accounts, details of their holdings of any class of shares representing 20% or more in entities which are not their subsidiary. This is a substantial interest as defined. The note to the financial statements must distinguish between subsidiary undertakings and undertakings by way of a substantial interest. The note […]
Substantial Shareholdings I Companies must disclose in the notes to their accounts, details of their holdings of any class of shares representing 20% or more in entities which are not their subsidiary. This is a substantial interest as defined. The note to the financial statements must distinguish between subsidiary undertakings and undertakings by way of a substantial interest. The note […]
General Scope The directors of a company must prepare a directors’ report for each financial year. It must contain a review of the company’s business. It must also deal with a range of key facts and specific confirmations which are required to be set out. The matters to be set out in the directors’ report include the identity of the directors; the […]
Approval of Financial Statements I The board of directors is to approve the statutory financial statements provided that its members are satisfied that they give a true and fair view and otherwise comply with this Companies Act or, where applicable, the alternative IAS / IFRS accounting standards. The statement shall be approved by the board and signed on its behalf […]
Large and Medium Regimes The Companies Act 2017 in effect creates four levels of company financial reporting regimes. The changes were based on the EU Accounting Directive. One of its main purposes was to reduce compliance costs smaller companies as defined. It further harmonised common EU standards for financial statements. The Directive allowed states to opt to provide for a […]
Background to Exemption I Under the Companies Act 1963, as enacted, all companies, private and public, were required to have their accounts audited annually by an independent qualified auditor. The purpose of the audit is to report on the annual statutory accounts of the company. The auditor is required to state whether or not they give a true and fair […]
Background to Exemption I Under the Companies Act 1963, as enacted, all companies, private and public, were required to have their accounts audited annually by an independent qualified auditor. The purpose of the audit is to report on the annual statutory accounts of the company. The auditor is required to state whether or not they give a true and fair […]
Background to Exemption I Under the Companies Act 1963, as enacted, all companies, private and public, were required to have their accounts audited annually by an independent qualified auditor. The purpose of the audit is to report on the annual statutory accounts of the company. The auditor is required to state whether or not they give a true and fair […]
Auditor’s Rights The statutory auditor has a right of access at all reasonable times to the accounting records of the company. He may require officers of the company to furnish such information and explanations as appear to be within their knowledge. It is an offence on the part of officers of the company, to fail to furnish the requisite information, […]
The Supervisory Authority The Irish Auditing and Accounting Supervisory Authority is continued in being by the Companies Act 2014. Its existing board membership was preserved. The Authority consists of nominees of each prescribed accountancy body, whether or not a body corporate; the Director of Corporate Enforcement; the Central Bank; the Irish Stock Exchange; the Revenue Commissioners; and other bodies prescribed […]
Return Documents I A Company must make an annual return to the Companies Registrations Office in respect of each annual period. The annual return is to be made in the prescribed form and must contain the prescribed information. A company must deliver the annual return to the Companies Registration Office not later than 28 days after its annual return date. […]
Annual Return Default I The CRO can strike off companies for failure to make annual returns. If a company has failed to make one or more annual returns, the CRO may notify it, that unless all returns are made within one month, the company will be struck. The company may be struck off unless cause is shown to the contrary, within a […]
Correction The Companies Act, 2014 provides a new mechanism for the correction of financial statements and/ or the directors’ report. The provisions apply if there is an error or deficiency in the accounts or in the directors’ report laid before the annual general meeting of the company or delivered to the Company Registration Office. Where information has been excluded from a directors’ report or […]
Small Companies Regime The Companies Act 2017 provides a new financial reporting regime for small companies. Companies which qualify as such may opt into the regime in relation to the preparation of their financial statements and reports. They may alternatively elect to report in accordance with the standard regime for medium and small size company. Many of the key provisions […]
2017 Act Reforms The 2017 legislation inserted three new schedules into the Companies Act dealing with the content of financial statements and accounting policies. There are two schedules which deal with group financial statements. Schedule 3A provides the accounting principles, form, and content of the financial statements of a company qualifying for the small companies regime. Schedule 3B provides the […]
Accounting Groups I European Union legislation requires holding companies to prepare and publish group accounts in addition to the own accounts. Group accounts are consolidated group-wide accounts.A “group” includes all group companies in the European Union. A group, for most Companies Act purposes, consists of a company and immediate layers of subsidiaries. The EU legislation provides a wider definition of a subsidiary […]