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The Companies Act 2014: Accounting miscellaneous

Jillian O'Sullivan Jillian O'Sullivan

In this Companies Act 2014 (the ‘Act’) publication, we outline some changes relating to your financial statements contained in the Act which, whilst not representing dramatic change or innovation, may nonetheless have a significant impact on some Irish companies.

The Act introduces a new regime whereby directors are allowed revise financial statements (including the director’s report). Where any changes do not impact the presentation of the profit and loss account, the balance sheet or other primary statements, the revision may be completed by way of a supplemental note. In instances where the primary statements are impacted, revised financial statements must be filed.

Where the original filed financial statements included a report by the auditors, the revised set must also include an updated auditor’s report. Approval of the revised financial statements must be sought at the next scheduled AGM in circumstances where the originals had previously been approved by the members at an AGM. Revised financial statements must be submitted to the CRO within 28 days of the date of the revision.

The Act has introduced some new terminology in respect of the requirement to keep accounting information. The Act states that a company keeps “adequate accounting records”. This replaces the previous reference to “proper books of account”. The Act also refers to “financial statements” in place of what was before referred to as “accounts”. It is hoped this will reduce any confusion as to the accounting records of a company and what is the financial statements of a company.