Companies (Accounting) Bill 2016 – Small Companies Regime – Part 3

This is the third article in a four-part series which aims to address some of the changes which the Bill will introduce to Irish law.

The central focus of the Bill is on the form and content of financial statements. For the majority of Irish companies the Bill will be a welcome reprieve from the regulatory burdens associated with the publication of financial statements.

The Small Companies Regime

The Small Companies Regime allows companies to avail of the following reliefs:-

• Abridged financial statements in the new simplified format prescribed by the Bill.

• An exemption from filing group financial statements for small groups. Alternatively a small group can choose to file a simplified form of group financial statements.

• A simplified Directors’ report which is not required to include a “business review” section or any information on the use of financial instruments by the company.

• An exemption from providing information regarding authorised share capital, issued share capital or the movement of its share capital.

• An exemption from providing information regarding the number of employees employed by category in the company, certain related undertakings, the financial effect of any arrangements which are not included on the balance sheet or any financial assistance for the purchase of the company’s own shares.

Combined with the increased qualifying thresholds for small companies, which were discussed in the previous article, the reliefs granted by the Small Companies Regime will benefit a significant portion of Irish companies by reducing the administrative and financial burden associated with the preparation of financial statements.

It is important to note that the Bill has not yet been enacted and may be subject to change. Some of the changes mentioned above will be examined in greater detail in future articles.

For further information regarding the Companies (Accounting) Bill 2016 please contact Maeve Walsh at mwalsh@reddycharlton.ie.