The long-awaited Companies (Accounting) Bill to transpose the EU Accounting Directive (Directive 2013/34/EU) has been published on 5 August 2016.
The Bill proposes to introduce a small companies regime and a micro companies regime which, when enacted, will allow for the use in Ireland of Section 1A of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland by small companies and FRS 105 The Financial Reporting Standard applicable to the Micro-entites Regime by micro companies.
Non-listed companies have been primarily using full FRS 102 since its introduction for accounting years commencing 1 January 2015 onwards and this had meant additional disclosure for micro entities and smaller companies.
This bill means less extra work
This bill looks to avoid this extra work required in preparing financial statements for
smaller and micro entity. The introduction of the bill had been delayed due to the recent general election.
Small and micro companies are companies with a turnover not exceeding €12 million and balance sheet total not exceeding €6 million.
The Bill contains new Schedules to replace the current Schedules 3 and 4 to the Companies Act 2014. These new Schedules separate the general entity and group financial statements requirements (Schedules 3 and 4) from those pertaining to small companies (Schedules 3A and 4A) and micro companies (Schedule 3B).
Also included in the Bill are other amendments to various sections of the Companies Act 2014 covering, for example, reporting to the ODCE; priority of charges; filing requirements for unlimited companies; matters relating to IAASA and the prescribed accountancy bodies; and the corporate governance statement required in section 1373 of the Companies Act 2014.
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