The Companies (Accounting) Bill based on the EU Accounting Directive (Directive 2013/34/EU) has been published.

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-entities Regime by micro companies. Small and micro companies are as defined, see section 15 of the Bill. The thresholds for small companies are proposed to be raised to the EU maximum levels of: turnover not exceeding €12 million and balance sheet total not exceeding €6 million.

If passed in its current form the new definitions for Micro, Small and Medium companies will be as follows: –

Micro company    Small company     Medium company

Net Turnover                                                                                                  €700,000        €12,000,000             €40,000,000

Balance sheet total                                                                                        €350,000          €6,000,000             €20,000,000

Average No. Employees                                                                                             10                        50                           250


The requirement is still that if any 2 of the 3 thresholds listed are fulfilled then the company qualifies in that category.

These new Micro, Small and Medium companies will all be eligible to file abridged financial statements.  The proposed content requirements of each form of abridged financial statements are set out in the Bill.  The Micro and Small companies will also be eligible for audit exemption.

Running to 92 sections and 161 pages, 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).

Payments to Government

The Bill also proposes to insert a new Part 26 ‘Payments to Governments’, containing the Directive’s requirements with regard to preparing and filing with the CRO, by large companies, large groups and public interest entities active in the mining and extractive industries, annual reports on payments made to governments.

Companies Act 2014 – Amendments

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.