Ireland has passed the Companies Accounting Bill 2016 and will begin to implement the EU accounting directive which allows small and micro companies to use FRS 105 micro entities regime and section 1A of FRS 102 for the first time, despite the UK adopting the same legislation two years ago
The Companies Accounting Bill 2016 has just been passed by the Oireacthas (Irish Parliament) and will transpose the EU Accounting Directive 2013 into Irish legislation. The Bill will have a significant impact for many private Irish companies in relation to financial reporting and disclosure of financial information.
Implementation of the EU accounting directive will mean that micro entities will not have to disclose details of directors’ remuneration or include a director’s report in their accounts.
Medium sized companies will no longer be able to abridge their financial statements filed with the Companies Registration Office resulting in increased disclosure of profit margins and turnover figures however, micro entities and small companies will still be able to file abbreviated financial information.
Medium companies will now also be required to prepare group accounts as the exemption from preparing consolidated financial statements on the basis of size for Irish parent companies has been restricted to micro entities and small companies.
Exemption from audit will also be no longer available to medium sized companies.
New company size criteria under EU accounting directive
To file accounts under FRS 105 companies must satisfy two out of three criteria in the table below.
Micro | Small | Medium | Large | |
Turnover | Less than €700,000 | Less than €12m | Less than €40m | Greater than €40m |
Balance sheet total (total assets) | Less than €350,000 | Less than €6m | Less than €20m | Greater Than €20m |
Number of employees | Less than 10 | Less than 50 | Less than 250 | Greater than 250 |
