Graduate

BUSINESS Susan Wylie, Audit Partner, PKF O’Connor, Leddy & Holmes
Companies
(Accounting) Bill 2016
– Proposed changes in
Reporting & Filing of
Companies Accounts
The Companies (Accounting) Bill 2016 was published
on 5 August 2016. Once enacted, the Bill will amend
and supplement the Companies Act 2014 in a number
of aspects. Currently, it is just a Bill and changes may
be made before it becomes law.
The Bill transposes
the Accounting
Directive 2013,
which will
simplify and
reduce some administrative
burdens with regard to the
preparation of financial
statements for enterprises, in
particular SMEs. In addition,
the Bill makes a number of
miscellaneous amendments
to the Companies Act 2014 not
related to the transposition
of the Directive.
Main features of the Bill
The Bill sets out new criteria
for companies to qualify as
small, medium or large, and
introduces a new "micro"
category of company. The
current thresholds are
indicated in brackets in the
table above.
To qualify, a company must
not exceed two of the three
thresholds. Large companies
are ones which exceed two
of the three thresholds for
medium companies.
The Bill introduces a
simplified regime for micro
companies with regard to
the preparation and filing of
financial statements. Micro
companies will be exempt
from disclosing directors'
remuneration in the financial
statements and exempt from
preparing a directors' report.
More companies will be
required to prepare group
financial statements as the
exemption on grounds of
size will only apply to small
and micro companies. Such
companies may still elect
to prepare group financial
statements if they wish.
Only small and micro
companies will be permitted
to file abridged financial
statements with the
Companies Registration
Office. Medium sized
companies will be required to
file full financial statements.
When enacted, the Bill
will require more corporate
Micro Small Medium
Net turnover €700,000 €12m
(€8.8m)
Balance sheet total €350,000 €6m
(€4.4m)
€40m
(€20m)
€20m
(€10m)
Average no. of employees 10 50 250
structures to file financial
statements than currently
is the case. The scope for
unlimited companies to avoid
filing financial statements
is much reduced. Unlimited
companies filing financial
statements for the first time
following the introduction
of the new rules should bear
in mind that these financial
statements must include
comparisons to financial
information for the
previous financial year.
Investment companies
(including certain UCITS
investment companies)
will be required to file a
directors’ report and
financial statements
with the CRO each year.
There will be mandatory
requirements for large
companies, large groups
and public interest entities
that are active in the
mining and extractive
industries or the logging
industries to prepare and file
annual reports on payments
made to Government.
There has been a delay in
enacting this Bill so we are
unable to say when it will be
enacted nor what the timing
of when the new provisions
will take effect and whether
any transitional arrangements
will be permitted. We will
keep you updated on the
progress of the Companies
(Accounting) Bill 2016 and the
timing of enactment over the
coming months. Remember
that until enacted, the old
law still applies.
Susan Wylie is an Audit Partner
at PKF O’Connor, Leddy &
Holmes Limited. Susan works
with a range of clients, including
owner-managed businesses,
companies in the pharmacy
sector and subsidiaries of large
multinationals. Contact her
at s.wylie@pkf.ie or phone
01 4961 444.
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IPUREVIEW APRIL 2017