Want to save money with compliance costs? Well, the new Companies Act 2014 which became effective on 1 June 2015 helps you do just that. If your company now avails of the Small Company Audit Exemption, a statutory audit is no longer legally required and the Company can prepare audit exempt accounts instead. Compliance cost savings could range from a few hundred to a few thousand every year.

Thresholds to meet to qualify

1) The company must be current with filing its annual returns with the CRO for the current and preceding years. 2) The company must meet 2 out of the following three thresholds: a) Turnover not to exceed €8.8m b) Total of fixed and current assets not to exceed €4.4m c) Employee numbers not to exceed 50 Prior to the 2014 Companies Act, companies had to meet all three thresholds but now only two must be met and the company only loses the exemption if the criteria is missed for two consecutive years.

Companies within groups

Companies within groups can now claim the exemption if both the company and the group as a whole meet the criteria. Previously any company in a group was prevented from claiming the exemption.

Who Else Can Claim The Exemption?

Other types of companies that can claim the exemption: - Companies limited by guarantee - again this is a new concession, - DAC's - Private unlimited companies

What if your company doesn't meet the thresholds?

Well don't worry, the 2013 EU Accounting Directive is expected to raise the thresholds to €12m for turnover and €6m for total assets. The Irish Government has not yet decided to apply these thresholds but we would expect them to do so, but don't hold your breath! If they were to be adopted they would come into force for periods starting 1 January 2016.

What questions do you have?

We are happy to help. Please post your comment below or call Paul Leonard, Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: pleonard@cooneycarey.ie To keep in touch, connect with us on LinkedIn.

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