Companies Act
PART 6
FINANCIAL STATEMENTS, ANNUAL RETURN AND AUDIT
CHAPTER 1
Preliminary
What this Part contains and use of prefixes —“Companies Act” and “IFRS”
272. (1) This Part contains the provisions regarding—
(a) the accounting records to be kept, and the financial statements to be prepared, by companies,
(b) the periodic returns to be made by companies to the Registrar, and
(c) the auditing of financial statements of companies and matters related to the auditing of them and, in particular, the rules governing the appointment of statutory auditors to, and their removal from, office.
(2) Those financial statements shall be prepared in accordance with (as this Part authorises)—
(a) the requirements of F25 [ Schedule 3, 3A, 3B, 4 or 4A , as the case may be, ] and the relevant requirements of this Part, or
(b) international financial reporting standards and the relevant requirements of this Part,
and the prefix—
(i) “Companies Act” is used in references in this Part to financial statements that must comply with the requirements referred to in paragraph (a), and
(ii) “IFRS” is used in references in this Part to financial statements that must comply with the requirements referred to in paragraph (b).
Annotations:
Amendments:
F25
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 10, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Overall limitation on discretions with respect to length of financial year and annual return date
273. (1) The discretions of a company under this Part with respect to the length of its financial year or to its annual return date are subject to the overall limitation that those discretions must be exercised in a manner that results in compliance by the company with the following requirement.
(2) That requirement is that which arises under section 347(4) relating to the earliest date to which the documents annexed to an annual return must be made up.
Interpretation ( Part 6): provisions relating to financial statements
274. (1) In this Part—
“abridged financial statements”, in relation to a company, means the financial statements of the company F26 [ prepared in accordance with section 353 ] , as appropriate;
“balance sheet”, in relation to a company, means a statement of assets, liabilities and financial position drawn up at a particular date showing the assets, liabilities and equity of the company at that date in a manner required by the financial reporting framework adopted by the company, and—
(a) for the avoidance of doubt, where the financial statements are prepared in accordance with IFRS, the expression means the statement of financial position referred to in those standards, and
(b) subsection (3) supplements this definition;
“Companies Act entity financial statements” shall be read in accordance with section 290 ;
“Companies Act financial statements” means Companies Act entity financial statements or Companies Act group financial statements;
“Companies Act group financial statements” shall be read in accordance with section 293 ;
“entity financial statements” means, in relation to a company, a summary (as at a particular date) respecting the company alone (as distinct from the company and any subsidiary undertakings) of its assets, liabilities and financial position, together with its profit or loss, since the date of its previous financial statements and generally comprises—
(a) a balance sheet,
(b) a profit and loss account, and
(c) other statements and notes attached to the foregoing and forming part of them,
and the expression “entity”, where used in relation to such a balance sheet or profit and loss account, shall be read accordingly;
“financial reporting framework” means the collective provisions and requirements (and, in particular, the applicable accounting standards) applied in the preparation of financial statements;
“financial statements”, in relation to a company, means entity financial statements and any group financial statements;
“group” means a holding undertaking and all its subsidiary undertakings;
“group financial statements” means, in relation to a holding company, a summary (as at a particular date) respecting the assets, liabilities and financial position of the company and its subsidiary undertakings as a whole, together with the profit or loss of the company and its subsidiary undertakings as a whole, since the date of the previous financial statements and generally comprises—
(a) a consolidated balance sheet,
(b) a consolidated profit and loss account, and
(c) other consolidated statements and notes attached to the foregoing and forming part of them,
and the expression “group”, where used in relation to such a balance sheet or profit and loss account, shall be read accordingly;
“IAS Regulation” means Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002 and a reference to Article 4 of that Regulation is, in the case of a private company limited by shares, a reference to Article 5 of that Regulation;
“IFRS” means international financial reporting standards;
“IFRS entity financial statements” shall be read in accordance with section 290 ;
“IFRS financial statements” means IFRS entity financial statements or IFRS group financial statements;
“IFRS group financial statements” shall be read in accordance with section 293 ;
“international financial reporting standards” means the international financial reporting standards, within the meaning of the IAS Regulation, adopted from time to time by the Commission of the European Union in accordance with the IAS Regulation;
“non-statutory financial statements”—
(a) in relation to a company, means any balance sheet or profit and loss account, or summary or abstract of a balance sheet or profit and loss account, relating to a financial year of the company that is published by the company otherwise than as part of the statutory financial statements of the company for that financial year, and
(b) in relation to a holding company, includes any information purporting to be a consolidated balance sheet or consolidated profit and loss account, or a summary or abstract of a consolidated balance sheet or consolidated profit and loss account, of the group consisting of the holding company and its subsidiary undertakings that is published otherwise than as part of the statutory financial statements of that group for that financial year,
and “non-statutory entity financial statements” shall be read accordingly;
“profit and loss account”, in relation to a company, means a statement of performance of the company showing revenues, expenses, gains and losses earned and incurred by the company during a period in a manner required by the financial reporting framework adopted by the company, and—
F27 [ (a) for the avoidance of doubt —
(i) in the case where the financial statements are prepared in accordance with IFRS, the expression means a statement of profit or loss and other comprehensive income or equivalent term referred to in those standards, and
(ii) in the case of a company not trading for the acquisition of gain by its members, the expression means an income and expenditure account, and references to —
(I) a profit and loss account, and
(II) in the case of group financial statements, a consolidated profit and loss account,
shall be read accordingly, and. ]
(b) subsection (4) supplements this definition;
“statutory financial statements”, in relation to a company, means—
(a) in the case of a company that is not a holding company or is a holding company that has availed itself of an exemption under this Part from the requirement to prepare group financial statements, the entity financial statements required by section 290 , and
(b) in the case of a holding company that prepares group financial statements, the group financial statements required by section 293 together with the entity financial statements required by section 290 .
(2) References in this Act to financial statements giving a true and fair view are references—
(a) in the case of Companies Act entity financial statements, to the requirement under section 291 that the entity financial statements prepared in accordance with that section give a true and fair view of the assets, liabilities, financial position and profit or loss of the company alone (as distinct from the company and any subsidiary undertakings),
(b) in the case of Companies Act group financial statements, to the requirement under section 294 that the group financial statements prepared in accordance with that section give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the subsidiary undertakings included in the consolidation taken as a whole, so far as concerns the members of the company, and
(c) in the case of IFRS entity financial statements and IFRS group financial statements, to the equivalent requirement under international financial reporting standards to present fairly the assets, liabilities, financial position, financial performance and cash flows of the company or group concerned.
(3) References in this Part to a company’s balance sheet include references to notes to the company’s financial statements giving information relating to the balance sheet, being information that is both—
(a) required by any provision of this Act (including IFRS or other applicable accounting standards), and
(b) required or permitted by any such provision to be given in a note to those financial statements.
(4) References in this Part to a company’s profit and loss account include references to notes to the company’s financial statements giving information relating to the profit and loss account, being information that is both—
(a) required by any provision of this Act (including IFRS or other applicable accounting standards), and
(b) required or permitted by any such provision to be given in a note to those financial statements.
(5) References in this Act to an undertaking being included in—
(a) the consolidation in relation to group financial statements, or
(b) consolidated group financial statements,
shall be read as references to the undertaking being included in the financial statements by the method of full (and not proportional) consolidation, and references to an undertaking being excluded from consolidation shall be read accordingly.
(6) A requirement imposed on the directors of a company to prepare financial statements is satisfied by the financial statements being caused to be prepared by the directors.
Annotations:
Amendments:
F26
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 88(e), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F27
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 11, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Interpretation ( Part 6): other definitions and construction provisions
275. (1) In this Part F28 [ and Part 26 ] —
F29 [ ‘ Accounting Directive ’ means Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 2 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC; ]
“accounting standards” means—
(a) statements of accounting standards, and
(b) any written interpretation of those standards,
issued by a body or bodies prescribed for the purposes of this definition under section 943(1)(h) ;
F29 [ ‘ amount of turnover ’ , in relation to a company, means the amount of the turnover shown in the company ’ s profit and loss account; ]
“associated undertaking” has the meaning given to it by F30 [ paragraph 21 of Schedule 4 or 4A , as the case may be ];
“audit committee” means the committee established under section 167 ;
“audit exemption”, unless expressly provided otherwise, means—
(a) other than in Chapter 15 , the audit exemption under that Chapter or Chapter 16 , or
(b) in Chapter 15 , the audit exemption under that Chapter;
“audit of the statutory financial statements” means work required to fulfil the duties imposed under section 336 on a statutory auditor of a company;
F29 [ ‘ balance sheet total ’ , in relation to a company, means the aggregate of the amounts shown as assets in the company ’ s balance sheet; ]
“credit institution” means—
(a) a company or undertaking that is the holder of a licence under section 9 of the Central Bank Act 1971,
(b) a company or undertaking engaged solely in the making of hire purchase agreements F31 [ (within the meaning of the Consumer Credit Act 1995 ) ] and credit sale agreements (within the meaning of that Act), in respect of goods owned by the company or undertaking,
(c) a company or undertaking engaged in the business of accepting deposits F31 [ or other repayable funds from the public and ] granting credit for its own account, or
(d) a company or undertaking that is a trustee savings bank licensed under the Trustee Savings Banks Act 1989;
“equity share capital” or “equity shares” means, in relation to a company, its allotted share capital excluding any part of it which, neither as respects dividends nor as respects capital, carries any right to participate beyond a specified amount in a distribution;
“fellow subsidiary undertakings” means 2 or more undertakings that are subsidiary undertakings of the same holding undertaking but which are not the holding undertaking or subsidiary undertaking of each other;
“group undertaking”, in relation to an undertaking, means an undertaking which is—
(a) a holding undertaking or subsidiary undertaking of that undertaking, or
(b) a subsidiary undertaking of any holding undertaking of that undertaking;
“higher holding undertaking” means an undertaking that is the holding undertaking of an undertaking that is itself a holding undertaking;
“holding undertaking” has the same meaning as “holding company” in section 8 has save that “company” in section 8 shall, for the purposes of this definition, include, as well as a body corporate—
(a) a partnership, and
(b) an unincorporated body of persons,
falling within the definition of “undertaking” in this subsection;
F29 [ ‘ ineligible entities ’ means undertakings that —
(a) have transferable securities admitted to trading on a regulated market of any Member State,
(b) are credit institutions,
(c) are insurance undertakings, or
(d) are —
(i) undertakings that —
(I) fall within any of the provisions of Schedule 5 , or
(II) are otherwise designated, by or under any other enactment, to be entities referred to in point (1)(d) of Article 2 of the Accounting Directive,
or
(ii) undertakings that are designated, by or under the law of any other Member State, to be entities referred to in point (1)(d) of Article 2 of the Accounting Directive and ‘ ineligible company ’ shall be read accordingly; ]
“insurance undertaking” means an undertaking that is the holder of an authorisation within the meaning of—
(a) Regulation 2 of the European Communities (Non-Life Insurance) Regulations 1976 ( S.I. No. 115 of 1976),
(b) Regulation 2 of the European Communities (Non-Life Insurance) Framework Regulations 1994 ( S.I. No. 359 of 1994),
(c) Regulation 2 of the European Communities (Life Assurance) Regulations 1984 ( S.I. No. 57 of 1984),
F32 [ (d) Regulation 2 of the European Communities (Life Assurance) Framework Regulations 1994 ( S.I. No. 360 of 1994 ),
(e) European Communities (Reinsurance) Regulations 2006 ( S.I. No. 380 of 2006 ), or
(f) Regulation 3 of the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 ); ]
F29 [ ‘ large company ’ shall be read in accordance with section 280H ;
‘ medium company ’ shall be read in accordance with section 280F or 280G , as may be appropriate; and ‘ medium group ’ shall be read accordingly;
‘ micro company ’ shall be construed in accordance with section 280D ;
‘ micro companies regime ’ has the meaning assigned to it by section 280E ; ]
“net assets”, in relation to a company or group, means the total assets of the company or group less the total liabilities of it or them as shown in the financial statements of the company or group;
“participating interest” has the meaning given to it by F33 [ paragraph 23 of Schedule 4 or 4A as the case may be ];
“publish”, in relation to a document, includes issue, circulate or otherwise make it available for public inspection in a manner calculated to invite the public generally, or any class of members of the public, to read the document, and cognate words shall be read accordingly;
“regulated market” has the same meaning as it has in the European Communities (Markets in Financial Instruments) Regulations 2007 ( S.I. No. 60 of 2007);
F29 [ ‘ small company ’ shall be read in accordance with section 280A or 280B , as may be appropriate; and ‘ small group ’ shall be read accordingly;
‘ small companies regime ’ has the meaning assigned to it by section 280C ; ]
“subsidiary undertaking” has the same meaning as “subsidiary” in section 7 has save that “company” in section 7 shall, for the purposes of this definition, include, as well as a body corporate—
(a) a partnership, and
(b) an unincorporated body of persons,
falling within the definition of “undertaking” in this subsection;
“turnover”, in relation to a company, means the amounts of revenue derived from the provision of goods and services falling within the company’s ordinary activities, after deduction of—
(a) trade discounts,
(b) value-added tax, and
(c) any other taxes based on the amounts so derived,
and, in the case of a company whose ordinary activities include the making or holding of investments, includes the gross revenue derived from such activities;
“undertaking” means—
(a) any body corporate,
(b) a partnership, or
(c) an unincorporated body of persons,
engaged for gain in the production, supply or distribution of goods, the provision of services or the making or holding of investments.
(2) For the purposes of this Part, the definition of “wholly owned subsidiary” in section 8(2) shall apply as if each reference in that definition to a company included a reference to an undertaking.
(3) In this Part references to shares—
(a) in relation to an undertaking with share capital, are references to allotted shares,
(b) in relation to an undertaking with capital but no share capital, are references to rights to share in the capital of the undertaking, and
(c) in relation to an undertaking without capital, are references to interests—
(i) conferring any rights to share in the profits or imposing liability to contribute to the losses of the undertaking, or
(ii) giving rise to an obligation to contribute to the debts or expenses of the undertaking in the event of a winding up.
(4) In this Part references to derivative financial instruments shall be deemed to include references to commodity-based contracts that give either contracting party the right to settle in cash or some other financial instrument except when such contracts—
(a) were entered into and continue to meet the company’s expected purchase, sale or usage requirements,
(b) were designed for such purpose at their inception, and
(c) are expected to be settled by delivery of the commodity.
F34 [ (5) A word or expression that is used in this Part, Part 26 or in Schedules 3, 3A, 3B, 4 or 4A and that is also used in the Accounting Directive shall have the same meaning in this Part, Part 26 or in those Schedules , as the case may be, as it has in the Accounting Directive. ]
(6) F35 [ … ]
Annotations:
Amendments:
F28
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 12(a)(i), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F29
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 12(a)(ii), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F30
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 90(e)(i), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F31
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 12(a)(iii), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F32
Substituted and inserted (1.01.2016) by European Union (Insurance and Reinsurance) Regulations 2015 (S.I. No. 485 of 2015), reg. 316, in effect as per reg 1(2), subject to reg. 1(3).
F33
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 90(e)(ii), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F34
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 12(b), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F35
Deleted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 12(c), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Editorial Notes:
E30
The Financial Reporting Council Limited, being a company limited by guarantee, registered in England and Wales with registered number 02486368, is prescribed for the purposes of the definition of accounting standards in subs. (1) as a body that issues statements of accounting standards, as provided (28.03.2018) by Companies Act 2014 (Accounting Standards) (Prescribed Body) Regulations 2018 (S.I. No. 84 of 2018), in effect as per reg. 2.
2 OJ No. L 182, 29.06.2013, p.19.
Construction of references to realised profits
276. (1) It is declared, for the avoidance of doubt, that references in this Part to realised profits, in relation to a company’s entity financial statements, are references to such profits of the company as fall to be treated as realised profits for the purposes of those financial statements in accordance with principles generally accepted with respect to the determination for accounting purposes of realised profits at the time when those financial statements are prepared.
(2) Subsection (1) is without prejudice to—
(a) the construction of any other expression by reference (where appropriate) to generally accepted accounting principles or practice, or
(b) any specific provision for the treatment of profits of any description as realised.
Construction of references to exemption
F36 [ 277 . (1) Subsection (2) is in addition to the provision made by this Part enabling certain elections to be made by a company that qualifies for the small companies regime or the micro companies regime.
(2) Any provision of this Part providing for an exemption from a requirement of this Part does not prevent the company concerned, if it so chooses, from doing the thing that the provision provides it is exempted from doing (the ‘ specified thing ’ ).
(3) If the company concerned chooses to do the specified thing —
(a) the provisions required by this Part to be complied with, in relation to the doing of such a thing, and
(b) the provisions specified by this Part to apply, in a case where such a thing is done,
as the case may be, shall be complied with or shall apply accordingly, but this does not prejudice any provision of this Part concerning the making of an election referred to in subsection (1) by a company there referred to (or concerning the effect of the company ’ s having so done).
(4) Subsection (2) applies whether the expression ‘ shall be exempt ’ or ‘ need not ’ or any other form of words is used in the provision concerned. ]
Annotations:
Amendments:
F36
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 13, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F37 [ Certain companies may apply provisions of Act to certain earlier financial years
277A. (1) Subject to this section, the directors of a company may, before the operative date of the provisions of the Act of 2017 specified in subsection (4) (the ‘ specified provisions of the Act of 2017 ’ ), opt to prepare and approve statutory financial statements for the company in accordance with those specified provisions for any financial year which commenced on or after 1 January 2015.
(2) All obligations and rights that arise under this Act consequent on or in respect of financial statements having been approved by directors of a company shall likewise arise in relation to financial statements approved by directors in a case falling within subsection (1) .
(3) In determining whether a company or group qualifies as —
(a) a medium company under section 280F or 280G , as the case may be,
(b) a small company under section 280A or 280B , as the case may be, or
(c) a micro company under section 280D ,
in relation to a financial year to which the specified provisions of the Act of 2017 have effect, the company or group, as may be appropriate shall be treated as having qualified as a medium company, small company or micro company, as the case may be, in any previous year in which it would have so qualified if the qualifying conditions applicable to that company or group, as the case may be, had had effect in relation to that previous year.
(4) Each of the following is a specified provision of the Act of 2017:
(a) section 3 ;
(b) section 4 ;
(c) sections 10 to 12 ;
(d) sections 15 to 25 ;
(e) paragraphs (a), (b) and (d) of section 26 ;
(f) sections 29 to 57 ;
(g) section 59 ;
(h) sections 62 to 64 ;
(i) sections 81 and 82 ;
(j) section 84 ;
(k) section 88 ;
(l) section 89 .
(5) In this section —
‘ Act of 2017 ’ means the Companies (Accounting) Act 2017;
‘ operative date ’ means the date on which the specified provision comes into operation pursuant to an order under section 1 (2) of the Act of 2017;
‘ qualifying conditions ’ has the same meaning as it has —
(a) in relation to a medium company, in section 280F(7) or 280G(10) , as the case may be,
(b) in relation to a small company, in section 280A(7) or 280B(10) , as the case may be, and
(c) in relation to a micro company, in section 280D(7). ]
Annotations:
Amendments:
F37
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 14, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Editorial Notes:
E31
The section heading is taken from the amending section in the absence of one included in the amendment.
Accounting standards generally — power of Minister to specify
278. (1) The Minister may specify by regulations the accounting standards in accordance with which statutory financial statements are to be prepared but any such regulations shall not apply in any excepted case.
(2) In subsection (1)“excepted case” means—
(a) a case in which this Part permits (and the company concerned avails itself of that permission), or requires, statutory financial statements to be prepared in accordance with IFRS, or
(b) a case falling within section 279 or regulations made under section 280 and the holding company concerned avails itself of what is permitted by that section or those regulations.
US accounting standards may, in limited cases, be availed of for particular transitional period
279. (1) In this section—
“relevant holding company” means a holding company—
(a) whose securities (or whose receipts in respect of those securities) are registered with the Securities and Exchange Commission of the United States of America, or which is otherwise subject to reporting to that Commission, under the laws of the United States of F38 [ America, ]
F39 [ (aa) which was incorporated in the State prior to the commencement of section 1 of the Companies (Amendment) Act 2017, and ]
(b) which—
(i) prior to 4 July 2012, has not made and was not required to make an annual return to the Registrar to which accounts were required to have been annexed, or
(ii) on or after 23 December 2009 but prior to 4 July 2012, used, in accordance with the provisions of the Companies (Miscellaneous Provisions) Act 2009, US accounting standards in the preparation of its Companies Act individual accounts or its Companies Act group accounts;
“relevant financial statements” means Companies Act entity financial statements and Companies Act group financial statements;
“US accounting standards” means US generally accepted accounting principles, that is to say, the standards and interpretations, in relation to accounting and financial statements, issued by any of the following bodies constituted under the laws of the United States of America or of a territorial unit of the United States of America—
(a) the Financial Accounting Standards Board,
(b) the American Institute of Certified Public Accountants,
(c) the Securities and Exchange Commission.
(2) This section applies to the relevant financial statements of a relevant holding company that are prepared for such of its financial years after it is incorporated in the State as end or ends not later than F40 [ 31 December 2030 ].
(3) To the extent that the use of US accounting standards does not contravene any provision of this Part—
(a) a true and fair view of the assets and liabilities, financial position and profit or loss of a relevant holding company may be given by the use by that company of those standards in the preparation of its Companies Act entity financial statements, and
(b) a true and fair view of the assets and liabilities, financial position and profit or loss of a relevant holding company and its subsidiary undertakings as a whole may be given by the use by that relevant holding company of those standards in the preparation of its Companies Act group financial statements.
Annotations:
Amendments:
F38
Substituted (18.07.2017) by Companies (Amendment) Act 2017 (13/2017), s. 1(a), S.I. No. 305 of 2017.
F39
Inserted (18.07.2017) by Companies (Amendment) Act 2017 (13/2017), s. 1(b), S.I. No. 305 of 2017.
F40
Substituted (18.07.2017) by Companies (Amendment) Act 2017 (13/2017), s. 1(c), S.I. No. 305 of 2017.
Regulations may permit use of other internationally recognised accounting standards for a particular transitional period
280. (1) In this section “relevant financial statements” means Companies Act entity financial statements and Companies Act group financial statements.
(2) The Minister may make regulations providing for specified categories of holding companies and providing that—
(a) a true and fair view of the assets and liabilities, financial position and profit or loss of a holding company in such a category may be given by the preparation by it of its Companies Act entity financial statements for a specified number of its financial years in accordance with specified accounting standards, and
(b) a true and fair view of the assets and liabilities, financial position and profit or loss of a holding company in such a category and its subsidiary undertakings as a whole may be given by the preparation by that holding company of its Companies Act group financial statements for a specified number of its financial years in accordance with specified accounting standards.
(3) Regulations made under subsection (2) shall—
(a) specify the accounting standards, which shall be—
(i) internationally recognised, and
(ii) generally accepted accounting principles or practice of a jurisdiction to which a majority of the subsidiary undertakings of the holding company have a substantial connection,
(b) specify the number of financial years in respect of which the regulations apply, and the date on which the latest of such financial years shall end, which shall be not later than 31 December 2020, and
(c) provide that the preparation of such financial statements shall not contravene any provision of this Part.
F41 [ CHAPTER 1A
Qualification of company based on size of company ]
Annotations:
Amendments:
F41
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Qualification of company as small company: general
280A. (1) A company that is not excluded by subsection (4) qualifies as a small company in relation to its first financial year if the qualifying conditions are satisfied in respect of that year.
(2) A company that is not excluded by subsection (4) qualifies as a small company in relation to a subsequent financial year (in this subsection referred to as ‘relevant year’) if the qualifying conditions —
(a) are satisfied in respect of the relevant year and the financial year immediately preceding the relevant year,
(b) are satisfied in respect of the relevant year and the company qualified as a small company in relation to the financial year immediately preceding the relevant year, or
(c) were satisfied in the financial year immediately preceding the relevant year and the company qualified as a small company in relation to that preceding financial year.
(3) The qualifying conditions for a small company are satisfied by a company if, in relation to a financial year, it fulfils 2 or more of the following requirements:
(a) the amount of turnover of the company does not exceed € 12 million;
(b) the balance sheet total of the company does not exceed € 6 million;
(c) the average number of employees does not exceed 50.
(4) This section shall not apply to a company if it is —
(a) a holding company, or
(b) an ineligible company.
(5) In the application of this section to any period which is a financial year but is not in fact a year, the amount specified in subsection (3)(a) shall be proportionately adjusted.
(6) For the purposes of subsection (3)(c) , the average number of employees of a company shall be determined by applying the methods specified in section 317 for determining the number required by subsection (1)(a) of that section to be stated in a note to the financial statements of a company.
(7) In this section, ‘ qualifying conditions ’ mean the requirements specified in subsection (3) . ]
Annotations:
Amendments:
F42
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Qualification of company as small company: holding company
280B. (1) A holding company qualifies as a small company in relation to a financial year only if the group, in respect of which it is the holding company, qualifies as a small group in relation to that same financial year.
(2) A group that is not excluded by subsection (5) qualifies as a small group in relation to the first financial year of the holding company if the qualifying conditions are satisfied in respect of that year.
(3) A group that is not excluded by subsection (5) qualifies as a small group in relation to a subsequent financial year (in this subsection referred to as ‘relevant year’) of the holding company if the qualifying conditions —
(a) are satisfied in respect of the relevant year and the financial year immediately preceding the relevant year,
(b) are satisfied in respect of the relevant year and the group qualified as a small group in relation to the financial year immediately preceding the relevant year, or
(c) were satisfied in the financial year immediately preceding the relevant year and the group qualified as a small group in relation to that preceding financial year.
(4) The qualifying conditions for a small group are satisfied by a group if, in relation to a financial year, it fulfils 2 or more of the following requirements:
(a) the aggregate amount of turnover of the group does not exceed € 12 million net (or € 14.4 million gross);
(b) the aggregate balance sheet total of the group does not exceed € 6 million net (or € 7.2 million gross);
(c) the aggregate average number of employees of the group does not exceed 50.
(5) This section shall not apply to a holding company of a group if any member of the group is an ineligible entity.
(6) In the application of this section to any period which is a financial year but is not in fact a year, the amounts specified in subsection (4)(a) shall be proportionally adjusted.
(7) The aggregate figures referred to in subsection (4) shall be ascertained by aggregating the equivalent figures determined in accordance with section 280A for each member of the group.
(8) Where a group proposes to satisfy the qualifying conditions referred to in subsection (4) on the basis of the requirements of paragraphs (a) and (b) of that subsection, it may do so on the basis of either the net figures or the gross figures respectively for both of the said paragraphs.
(9) The figures for each subsidiary undertaking shall be those included in its entity financial statements for the relevant financial year —
(a) if its financial year ends with that of the holding company, that financial year, and
(b) if not, its financial year ending last before the end of the financial year of the holding company.
(10) In this section —
‘ first financial year of a holding company ’ means the first financial year at the end of which the company qualifies as a holding company by virtue of having one or more subsidiaries;
‘ qualifying conditions ’ mean the requirements referred to in subsection (4) .
(11) For the purposes of this section, in relation to the aggregate figures for turnover and balance sheet total —
‘ net ’ means after set-offs and other adjustments made to eliminate group transactions —
(i) in the case of Companies Act financial statements, in accordance with Schedule 4 , and
(ii) in the case of IFRS financial statements, in accordance with international financial reporting standards;
‘ gross ’ means without those set-offs and other adjustments. ]
Annotations:
Amendments:
F43
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Small companies regime
280C. Where a company qualifies as a small company in accordance with section 280A or 280B , as may be appropriate, then, as provided in this Part, different rules may be applied (in this Act referred to as the ‘ small companies regime ’ ) to the company in respect of financial statements and reports for a financial year in relation to which that company so qualifies as a small company. ]
Annotations:
Amendments:
F44
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Qualification of company as micro company
280D. (1) A company that is not excluded by subsection (4) qualifies as a micro company in relation to its first financial year if the qualifying conditions are satisfied in respect of that year.
(2) A company that is not excluded by subsection (4) qualifies as a micro company in relation to a subsequent financial year (in this subsection referred to as the ‘relevant year’) if the qualifying conditions —
(a) are satisfied in respect of the relevant year and the financial year immediately preceding the relevant year,
(b) are satisfied in respect of the relevant year and the company qualified as a micro company in relation to the financial year immediately preceding the relevant year, or
(c) were satisfied in the financial year immediately preceding the relevant year and the company qualified as a micro company in relation to that preceding financial year.
(3) The qualifying conditions for a micro company are satisfied by a company if, in relation to a financial year, it —
(a) qualifies for the small companies regime, and
(b) fulfils 2 or more of the following requirements:
(i) the amount of turnover of the company does not exceed € 700,000;
(ii) the balance sheet total of the company does not exceed € 350,000;
(iii) the average number of employees does not exceed 10.
(4) This section shall not apply to a company if it is —
(a) an investment undertaking,
(b) a financial holding undertaking,
(c) a holding company that prepares group financial statements, or
(d) a subsidiary that is included in the consolidated financial statements of a higher holding undertaking.
(5) In the application of this section to any period which is a financial year but is not in fact a year, the amount specified in subsection (3)(b)(i) shall be proportionately adjusted.
(6) For the purposes of subsection (3)(b)(iii) , the average number of employees of a company shall be determined by applying the methods specified in section 317 for determining the number required by subsection (1)(a) of that section to be stated in a note to the financial statements of a company.
(7) In this section, ‘ qualifying conditions ’ mean the conditions specified in subsection (3) . ]
Annotations:
Amendments:
F45
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
F46 [
Micro companies regime
280E. Where a company qualifies as a micro company in accordance with section 280D , then, as provided in this Part, different rules may be applied (in this Act referred to as the ‘micro companies regime’) to the company in respect of financial statements and reports for a financial year in relation to which that company so qualifies as a micro company. ]
Annotations:
Amendments:
F46
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Qualification of company as medium company: general
280F. (1) A company that is not excluded by subsection (4) qualifies as a medium company in relation to its first financial year if the qualifying conditions are satisfied in respect of that year.
(2) A company that is not excluded by subsection (4) qualifies as a medium company in relation to a subsequent financial year (in this subsection referred to as ‘relevant year’) if the qualifying conditions —
(a) are satisfied in respect of the relevant year and the financial year immediately preceding the relevant year,
(b) are satisfied in respect of the relevant year and the company qualified as a medium company in relation to the financial year immediately preceding the relevant year, or
(c) were satisfied in the financial year immediately preceding the relevant year and the company qualified as a medium company in relation to that preceding financial year.
(3) The qualifying conditions for a medium company are satisfied by a company if, in relation to a financial year, it fulfils 2 or more of the following requirements:
(a) the amount of turnover of the company does not exceed € 40 million;
(b) the balance sheet total of the company does not exceed € 20 million;
(c) the average number of employees does not exceed 250.
(4) This section shall not apply to a company if it is —
(a) a holding company,
(b) an ineligible company,
(c) a company that qualifies for the small companies regime, or
(d) a company that qualifies for the micro companies regime.
(5) In the application of this section to any period which is a financial year but is not in fact a year, the amount specified in subsection (3)(a) shall be proportionately adjusted.
(6) For the purposes of subsection (3)(c) , the average number of employees of a company shall be determined by applying the methods specified in section 317 for determining the number required by subsection (1)(a) of that section to be stated in a note to the financial statements of a company.
(7) In this section, ‘ qualifying conditions ’ mean the conditions referred to in subsection (3) . ]
Annotations:
Amendments:
F47
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Qualification of company as medium company: holding company
280G. (1) A holding company qualifies as a medium company in relation to a financial year only if the group, in respect of which it is the holding company, qualifies as a medium group.
(2) A group that is not excluded by subsection (5) qualifies as a medium group in relation to the first financial year of the holding company if the qualifying conditions are satisfied in respect of that year.
(3) A group that is not excluded by subsection (5) qualifies as a medium group in relation to a subsequent financial year (in this subsection referred to as ‘relevant year’) of the holding company if the qualifying conditions —
(a) are satisfied in respect of the relevant year and the financial year immediately preceding the relevant year,
(b) are satisfied in respect of the relevant year and the group qualified as a medium group in relation to the financial year immediately preceding the relevant year, or
(c) were satisfied in the financial year immediately preceding the relevant year and the group qualified as a medium group in relation to that preceding financial year.
(4) The qualifying conditions for a medium group are satisfied by a group if, in relation to a financial year, it fulfils 2 or more of the following requirements:
(a) the aggregate amount of turnover of the group does not exceed € 40 million net (or € 48 million gross);
(b) the aggregate balance sheet total of the group does not exceed € 20 million net (or € 24 million gross);
(c) the aggregate average number of employees of the group does not exceed 250.
(5) This section shall not apply to the holding company of a group if any member of the group is an ineligible entity.
(6) In the application of this section to any period which is a financial year but is not in fact a year, the amounts specified in subsection (4)(a) shall be proportionally adjusted.
(7) The aggregate figures referred to in subsection (4) shall be ascertained by aggregating the equivalent figures determined in accordance with section 280F for each member of the group.
(8) Where a group proposes to satisfy the qualifying conditions referred to in subsection (4) on the basis of the requirements of paragraphs (a) and (b) of that subsection, it may do so on the basis of either the net figures or the gross figures respectively for both of the said paragraphs.
(9) The figures for each subsidiary undertaking shall be those included in its entity financial statements for the relevant financial year —
(a) if its financial year ends with that of the holding company, that financial year, and
(b) if not, its financial year ending last before the end of the financial year of the holding company.
(10) In this section —
‘ first financial year of a holding company ’ means the first financial year at the end of which the company qualifies as a holding company by virtue of having one or more subsidiaries;
‘ qualifying conditions ’ mean the conditions referred to in subsection (4) .
(11) For the purposes of this section, in relation to the aggregate figures for turnover and balance sheet total —
‘ net ’ means after set-offs and other adjustments made to eliminate group transactions —
(i) in the case of Companies Act financial statements, in accordance with Schedule 4 , and
(ii) in the case of IFRS financial statements, in accordance with international financial reporting standards;
‘ gross ’ means without those set-offs and other adjustments. ]
Annotations:
Amendments:
F48
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Qualification of company as large company
280H. A company that does not qualify as —
(a) a small company in accordance with section 280A or 280B ,
(b) a micro company in accordance with section 280D , or
(c) a medium company in accordance with section 280F or 280G ,
shall be deemed to be a large company. ]
Annotations:
Amendments:
F49
Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 15, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
Schedule 3
Format of Accounts
F321 [ SCHEDULE 3
ACCOUNTING PRINCIPLES, FORM AND CONTENT OF ENTITY FINANCIAL STATEMENTS ]
Annotations:
Amendments:
F321
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 89 and sch. 1, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
CONSTRUCTION OF REFERENCES TO PROVISIONS OF SCHEDULES
F321 [ 1. (1) Without prejudice to the generality of section 9 of the Interpretation Act 2005 and its application to the body of this Act and to Schedules 1, 2 and 5 to 18 —
(a) a reference in this Schedule to a paragraph or Part is a reference to a paragraph or Part of this Schedule, unless it is indicated that a reference to some other enactment is intended,
(b) a reference in this Schedule to a section is a reference to the section of the Part in which the reference occurs, unless it is indicated that a reference to some other enactment is intended, and
(c) a reference in this Schedule to a subparagraph or clause is a reference to the subparagraph or clause of the provision in which the reference occurs, unless it is indicated that a reference to some other enactment is intended.
(2) Provisions providing for the interpretation of certain expressions appearing in this Schedule are contained in Part VI . ]
Annotations:
Amendments:
F321
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 89 and sch. 1, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
GENERAL RULES AND FORMATS
F321 [ SECTION A
GENERAL RULES
2. (1) Subject to the provisions of this Schedule —
(a) every balance sheet of a company shall show the items listed in either of the balance sheet formats set out in Section B , and
(b) every profit and loss account of a company shall show the items listed in either of the profit and loss accounts formats so set out,
in either case in the order and under the headings and sub-headings given in the format adopted.
(2) Notwithstanding subparagraph (1)(a) , in preparing the balance sheet of a company, the directors of the company may adapt one of the balance sheet formats in Section B so as to distinguish between current and non-current items in a different way, provided that —
(a) the information given is at least equivalent to that which would have been required by the use of such format had it not been thus adapted, and
(b) the presentation of those items is in accordance with generally accepted accounting principles or practice.
(3) Notwithstanding subparagraph (1)(b) , the directors of the company may prepare a statement of the performance of the company instead of a profit and loss account and in doing so may adapt one of the profit and loss account formats in Section B , provided that —
(a) the information given is at least equivalent to that which would have been required by the use of such format had it not been thus adapted, and
(b) the presentation of those items is in accordance with generally accepted accounting principles or practice.
(4) Subparagraph (1) shall not be read as requiring the heading or sub-heading for any item in the balance sheet, or profit and loss account, of a company to be distinguished by any letter or number assigned to that item in the formats set out in Section B .
(5) So far as is practicable, the following provisions of this section shall apply to the balance sheet and profit and loss account of a company notwithstanding any adaptation pursuant to subparagraphs (2) and (3) .
3. (1) Where, in accordance with paragraph 2(1) , a company ’ s balance sheet or profit and loss account for any financial year has been prepared by reference to one of the formats set out in Section B or where, in accordance with paragraph 2(2) or 2(3) one of the formats has been adapted, the directors of the company shall adopt the same format in preparing the financial statements for subsequent financial years unless, in their opinion, there are special reasons for a change.
(2) Where any change is made in the format adopted in preparing a balance sheet or profit and loss account of a company, the reasons for the change, together with full particulars of the change, shall be given in a note to the financial statements in which the new format is first adopted.
4. (1) Any item required in accordance with paragraph 2 to be shown in the balance sheet or profit and loss account of a company may be shown in greater detail than that required by the format adopted.
(2) The balance sheet, or profit and loss account, of a company may include an item representing or covering the amount of any asset or liability or income or expenditure not otherwise covered by any of the items listed in the format adopted but the following shall not be treated as assets in the balance sheet of a company —
(a) preliminary expenses,
(b) expenses of and commission on any issue of shares or debentures, and
(c) costs of research.
(3) The balance sheet, or profit and loss account, of a company may include subtotals where their inclusion facilitates the assessment of the financial position or profit or loss of the company for the financial year concerned.
(4) Any items to which an Arabic number is assigned in any of the formats set out in Section B may be combined in the financial statements of a company —
(a) in any case where the individual amounts of such items are not material to assessing the financial position or profit or loss of the company for the financial year concerned, or
(b) in any case where the combination of such items facilitates that assessment.
(5) Where items are combined in a company ’ s financial statements pursuant to subparagraph (4)(b) , the individual amounts of any items so combined shall be disclosed in a note to the financial statements.
(6) In preparing the balance sheet, or profit and loss account, of a company, the directors of the company shall adapt the arrangement and headings and sub-headings otherwise required by paragraph 2 in respect of items to which an Arabic number is assigned in the format adopted, in any case where the special nature of the company ’ s business requires such adaptation.
(7) Where an asset or liability relates to more than one of the items listed in either of the balance sheet formats set out in Section B , its relationship to other items shall be disclosed either under the item where it is shown or in the notes to the financial statements.
(8) The opening balance sheet for each financial year shall correspond to the closing balance sheet for the preceding financial year.
5. (1) Subject to subparagraph (2) , in respect of every item shown in the balance sheet, or profit and loss account, or notes thereto, of a company, the corresponding amount for the financial year immediately preceding that to which the balance sheet or profit and loss account relates shall also be shown and, if that corresponding amount is not comparable with the amount to be shown for the item in question in respect of the financial year to which the balance sheet or profit and loss account relates, the former amount may be adjusted, and particulars of the adjustment and the reasons therefor shall be given in a note to the financial statements.
(2) Corresponding amounts are not required for the movements in fixed assets during the year required by paragraph 46(1) and (3) or the movements in provisions required by paragraph 54(1) and (2) .
6. (1) Subject to subparagraph (2) , a heading or sub-heading corresponding to an item listed in the format adopted in preparing the balance sheet or profit and loss account of a company shall not be included in the balance sheet or profit and loss account, as the case may be, if there is no amount to be shown for that item in respect of the financial year to which the balance sheet or profit and loss account relates.
(2) Subparagraph (1) shall not apply in any case where an amount can be shown for the item in question in respect of the financial year immediately preceding that to which the balance sheet or profit and loss account relates, and that amount shall be shown under the heading or sub-heading required by the format adopted as aforesaid.
7. (1) Subject to subparagraph (2) , amounts in respect of items representing assets or income may not be set off in the financial statements of a company against amounts in respect of items representing liabilities or expenditure, as the case may be, or vice versa .
(2) Subparagraph (1) shall not apply in any case where such set off is in accordance with applicable accounting standards, provided that the gross amounts are disclosed in a note to the financial statements.
THE REQUIRED FORMATS FOR FINANCIAL STATEMENTS
Preliminary
8. References in this Part to the items listed in any of the formats set out in this Part are references to those items read together with any notes following the formats which apply to any of those items.
9. A number in brackets following any item in, or any heading to, any of the formats set out in this Part is a reference to the note of that number in the notes following the formats.
10. In the notes following the formats —
(a) the heading of each note gives the required heading or sub- heading for the item to which it applies and a reference to any letters and numbers assigned to that item in the formats set out in this Part, and
(b) references to a numbered format are references to the balance sheet format or (as the case may require) to the profit and loss account format of that number set out in this Part.
BALANCE SHEET FORMATS
Format 1
ASSETS
A. Fixed Assets
I. Intangible assets
1. Development costs
2. Concessions, patents, licences, trade marks and similar rights and assets (1)
3. Goodwill (2)
4. Payments on account
II. Tangible assets
1. Investment property
2. Land and buildings
3. Plant and machinery
4. Fixtures, fittings, tools and equipment
5. Payments on account and assets in course of construction
III. Financial assets
1. Shares in group undertakings
2. Loans to group undertakings
3. Participating interests
4. Loans to undertakings with which the company is linked by virtue of participating interests
5. Other investments other than loans
6. Other loans
B. Current Assets
I. Stocks
1. Raw materials and consumables
2. Work in progress
3. Finished goods and goods for resale
4. Payments on account
II. Debtors (3)
1. Trade debtors
2. Amounts owed by group undertakings
3. Amounts owed by undertakings with which the company is linked by virtue of participating interests
4. Other debtors
5. Called-up share capital not paid
6. Prepayments
7. Accrued income
III. Investments
1. Shares in group undertakings
2. Other investments
IV. Cash at bank and in hand
C. Creditors: Amounts falling due within one year
1. Debenture loans (4)
2. Amounts owed to credit institutions
3. Called-up share capital presented as a liability (8)
4. Payments received on account (5)
5. Trade creditors
6. Bills of exchange payable
7. Amounts owed to group undertakings
8. Amounts owed to undertakings with which the company is linked by virtue of participating interests
9. Other creditors including tax and social insurance (6)
10. Accruals
11. Deferred income (7)
D. Net current assets (liabilities)
E. Total assets less current liabilities
F. Creditors: Amounts falling due after more than one year
1. Debenture loans (4)
2. Amounts owed to credit institutions
3. Called-up share capital presented as a liability (8)
4. Payments received on account (5)
5. Trade creditors
6. Bills of exchange payable
7. Amounts owed to group undertakings
8. Amounts owed to undertakings with which the company is linked by virtue of participating interests
9. Other creditors including tax and social insurance (6)
10. Accruals
11. Deferred income (7)
G. Provisions for liabilities
1. Retirement benefit and similar obligations
2. Taxation, including deferred taxation
3. Other provisions for liabilities
H. Capital and reserves
I. Called-up share capital presented as equity (8)
II. Share premium account
III. Revaluation reserve
IV. Other reserves
1. Other undenominated capital
2. Reserve for own shares held
3. Reserves provided for by the constitution
4. Other reserves including the fair value reserve (specified as necessary)
V. Profit or loss brought forward (10)
VI. Profit or loss for the financial year (10).
Format 2
ASSETS
A. Fixed Assets
I. Intangible assets
1. Development costs
2. Concessions, patents, licences, trade marks and similar rights and assets (1)
3. Goodwill (2)
4. Payments on account
II. Tangible assets
1. Investment property
2. Land and buildings
3. Plant and machinery
4. Fixtures, fittings, tools and equipment
5. Payments on account and assets in course of construction
III. Financial assets
1. Shares in group undertakings
2. Loans to group undertakings
3. Participating interests
4. Loans to undertakings with which the company is linked by virtue of participating interests
5. Other investments other than loans
6. Other loans
B. Current Assets
I. Stocks
1. Raw materials and consumables
2. Work in progress
3. Finished goods and goods for resale
4. Payments on account
II. Debtors (3)
1. Trade debtors
2. Amounts owed by group undertakings
3. Amounts owed by undertakings with which the company is linked by virtue of participating interests
4. Other debtors
5. Called-up share capital not paid
6. Prepayments
7. Accrued income
III. Investments
1. Shares in group undertakings
2. Other investments
IV. Cash at bank and in hand
CAPITAL, RESERVES AND LIABILITIES
A. Capital and reserves
I. Called-up share capital presented as equity (8)
II. Share premium account
III. Revaluation reserve
IV. Other reserves
1. Other undenominated capital
2. Reserve for own shares held
3. Reserves provided for by the constitution
4. Other reserves including the fair value reserve (specify as necessary)
V. Profit or loss brought forward (10)
VI. Profit or loss for the financial year (10)
B. Provisions for liabilities
1. Retirement benefit and similar obligations
2. Taxation, including deferred taxation
3. Other provisions for liabilities
C. Creditors (9)
1. Debenture loans (4)
2. Amounts owed to credit institutions
3. Called-up share capital presented as a liability (8)
4. Payments received on account (5)
5. Trade creditors
6. Bills of exchange payable
7. Amounts owed to group undertakings
8. Amounts owed to undertakings with which the company is linked by virtue of participating interests
9. Other creditors including tax and social insurance (6)
10. Accruals
11. Deferred income (7)
NOTES ON THE BALANCE SHEET FORMATS
(1) Concessions, patents, licences, trade marks and similar rights and assets (Formats 1 and 2, items A. I. 2)
Amounts in respect of assets shall only be included in a company ’ s balance sheet under this item if either —
(a) the assets were acquired for valuable consideration and are not required to be shown under goodwill, or
(b) the assets in question were created by the company itself.
(2) Goodwill
( Formats 1 and 2 , items A. I. 3 )
Amounts representing goodwill shall only be included to the extent that the goodwill was acquired for valuable consideration.
(3) Debtors
( Formats 1 and 2 , items B. II. 1 to 7 )
The amount falling due after more than one year shall be shown separately for each item included under debtors.
(4) Debenture loans
( Format 1, item C. 1 and F. 1 and Format 2, item C.1 )
The amount of any convertible loans shall be shown separately and the terms and conditions under which those loans are convertible into share capital shall be disclosed in the notes to the financial statements.
(5) Payments received on account
( Format 1, items C. 4 and F. 4 and Format 2, item C.4 )
Payments received on account of orders shall be shown for each of these items in so far as they are not shown as deductions from stocks.
(6) Other creditors including tax and social insurance
( Format 1, items C. 9 and F. 9 and Format 2, item C.9 )
The amount for creditors in respect of taxation and social insurance shall be shown separately from the amount for other creditors and in respect of taxation there shall be stated separately the amounts included in respect of income tax payable on emoluments to which Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 applies, any other income tax, corporation tax, capital gains tax, value-added tax and any other tax.
(7) Deferred income
( Format 1, items C. 11 and F. 11 and Format 2, items C.11 )
The amount in respect of Government grants, that is to say, grants made by or on behalf of the Government, included in this item shall be shown separately in a note to the financial statements unless it is shown separately in the balance sheet.
(8) Called-up share capital
( Format 1, item C. 3, F. 3 and H. I, and Format 2, ‘CAPITAL, RESERVES AND LIABILITIES’ items A. I and C. 3 )
In accordance with the accounting principle in paragraph 17 , called-up share capital shall be analysed between shares that are presented as liabilities and share capital.
(9) Creditors
( Format 2, items C. 1 to 11 )
Amounts falling due within one year and after one year shall be shown separately for each of these items and their aggregate shall be shown separately for all of these items.
(10) Profit and loss account
( Format 1, items H.V and VI , Format 2, ‘CAPITAL, RESERVES AND LIABILITIES’ items A.V and V.I )
These items may be combined where the appropriation of profit required by paragraph 53 is given at the foot of the profit and loss account or in a note to the financial statements.
PROFIT AND LOSS ACCOUNT FORMATS
Format 1 (15)
1. Turnover
2. Cost of sales (11)
3. Gross profit or loss
4. Distribution costs (11)
5. Administrative expenses (11)
6. Other operating income
7. Income from shares in group undertakings
8. Income from participating interests
9. Income from other financial assets (12)
10. Other interest receivable and similar income (12)
11. Value adjustments in respect of financial assets and investments held as current assets
12. Interest payable and similar expenses (13)
13. Tax on profit or loss
14. Profit or loss after taxation
15. Other taxes not shown under the above items
16. Profit or loss for the financial year (14)
Format 2
1. Turnover
2. Variation in stocks of finished goods and in work in progress
3. Own work capitalised
4. Other operating income
5. (a) Raw materials and consumables
(b) Other external expenses
6. Staff costs:
(a) Wages and salaries
(b) Social insurance costs
(c) Other retirement benefit costs
(d) Other compensation costs
7. (a) Depreciation and other value adjustments in respect of tangible and intangible fixed assets
(b) Value adjustments in respect of current assets to the extent they exceed value adjustments that are normal in the undertaking concerned
8. Other operating expenses
9. Income from shares in group undertakings
10. Income from participating interests
11. Income from other financial assets (12)
12. Other interest receivable and similar income (12)
13. Value adjustments in respect of financial assets and investments held as current assets
14. Interest payable and similar expenses (13)
15. Tax on profit or loss
16. Profit or loss after taxation
17. Other taxes not shown under the above items
18. Profit or loss for the financial year (14)
NOTES ON THE PROFIT AND LOSS ACCOUNT FORMATS
(11) Cost of sales: Distribution costs: Administrative expenses
( Format 1, items 2, 4 and 5 )
These items shall be stated after taking into account any necessary value adjustments for depreciation or diminution in value of assets.
(12) Income from other financial assets: other interest receivable and similar income
( Format 1, items 9 and 10 ; Format 2, items 11 and 12 )
Income and interest derived from group undertakings shall be shown separately from income and interest derived from other sources.
(13) Interest payable and similar expenses
( Format 1, item 12 ; Format 2, item 14 )
The amount payable to group undertakings shall be shown separately.
(14) Profit or loss for the financial year
( Format 1, item 16 ; Format 2, item 18 )
The appropriation of profit required by paragraph 53 may be given at the foot of the profit and loss account or in a note to the financial statements.
(15) Format 1
The amounts of any value adjustments for depreciation and diminution in value of tangible and intangible fixed assets falling to be shown under item 7(a) in Format 2 shall be disclosed in a note to the financial statements in any case where the profit and loss account is prepared by reference to Format 1. ]
Annotations:
Amendments:
F321
Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 89 and sch. 1, S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.
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