Companies (Accounting) Act 2017
Companies (Accounting) Act 2017
Companies (Accounting) Act 2017
CONTENTS
PART 1
PRELIMINARY AND GENERAL
Section
1. Short title and commencement
2. Definitions
3. Repeals and revocations
PART 2
AMENDMENT OF PRINCIPAL ACT
4. Amendment of section 7 of Principal Act
5. Amendment of section 9 of Principal Act
6. Amendment of section 68 of Principal Act
7. Amendment of section 72 of Principal Act
8. Amendment of section 85 of Principal Act
9. Amendment of section 167 of Principal Act
10. Amendment of section 272 of Principal Act
11. Amendment of section 274 of Principal Act
12. Amendment of section 275 of Principal Act
13. Construction of references to exemption
14. Certain companies may apply provisions of Act to certain earlier financial years
15. Qualification of company based on size of company
16. Amendment of section 290 of Principal Act
17. Amendment of section 291 of Principal Act
18. Amendment of section 292 of Principal Act
19. Amendment of section 293 of Principal Act
20. Amendment of section 294 of Principal Act
21. Amendment of section 295 of Principal Act
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[No. 9.] Companies (Accounting) Act 2017. [2017.]
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[2017.] Companies (Accounting) Act 2017. [No. 9.]
PART 3
OTHER MISCELLANEOUS AMENDMENTS TO PRINCIPAL ACT
91. Amendment of section 117 of Principal Act
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[No. 9.] Companies (Accounting) Act 2017. [2017.]
PART 4
MISCELLANEOUS
99. Amendment of Transparency (Directive 2004/109/EC) Regulations 2007
100. Amendment of European Communities (Undertakings for Collective Investment in
Transferable Securities) Regulations 2011
101. Amendment of European Union (Alternative Investment Fund Managers) Regulations
2013
SCHEDULE 1
SCHEDULE 2
SCHEDULE 3
SCHEDULE 4
SCHEDULE 5
SCHEDULE 6
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[2017.] Companies (Accounting) Act 2017. [No. 9.]
ACTS REFERRED TO
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Number 9 of 2017
An Act to give further effect to Directive 2013/34/EU of the European Parliament and of
the Council of 26 June 20131 on the annual financial statements, consolidated financial
statements and related reports of certain types of undertakings, amending Directive
2006/43/EC of the European Parliament and of the Council and repealing Council
Directives 78/660/EEC and 83/349/EEC and, for that purpose, to amend the Companies
Act 2014; to make provision for certain other amendments to that Act; to provide for the
amendment of certain other enactments; and to provide for related matters.
[17th May, 2017]
Be it enacted by the Oireachtas as follows:
PART 1
Definitions
2. In this Act
Minister means the Minister for Jobs, Enterprise and Innovation;
Principal Act means the Companies Act 2014.
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PART 2
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.5
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.11
(ii) in the case of a company not trading for the acquisition of gain
by its members, the expression means an income and
expenditure account, and references to
(I) a profit and loss account, and
(II) in the case of group financial statements, a consolidated
profit and loss account,
shall be read accordingly, and.
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PT.2 S.12 [No. 9.] Companies (Accounting) Act 2017. [2017.]
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.13
Certain companies may apply provisions of Act to certain earlier financial years
14. The Principal Act is amended by the insertion of the following section after section 277:
277A. (1) Subject to this section, the directors of a company may, before the
operative date of the provisions of the Act of 2017 specified in
subsection (4) (the specified provisions of the Act of 2017), opt to
prepare and approve statutory financial statements for the company in
accordance with those specified provisions for any financial year
which commenced on or after 1 January 2015.
(2) All obligations and rights that arise under this Act consequent on or in
respect of financial statements having been approved by directors of a
company shall likewise arise in relation to financial statements
approved by directors in a case falling within subsection (1).
(3) In determining whether a company or group qualifies as
(a) a medium company under section 280F or 280G, as the case may
be,
(b) a small company under section 280A or 280B, as the case may be,
or
(c) a micro company under section 280D,
in relation to a financial year to which the specified provisions of the
Act of 2017 have effect, the company or group, as may be appropriate
shall be treated as having qualified as a medium company, small
company or micro company, as the case may be, in any previous year
in which it would have so qualified if the qualifying conditions
applicable to that company or group, as the case may be, had had
effect in relation to that previous year.
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CHAPTER 1A
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.15
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.15
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.15
(b) are satisfied in respect of the relevant year and the company
qualified as a medium company in relation to the financial year
immediately preceding the relevant year, or
(c) were satisfied in the financial year immediately preceding the
relevant year and the company qualified as a medium company in
relation to that preceding financial year.
(3) The qualifying conditions for a medium company are satisfied by a
company if, in relation to a financial year, it fulfils 2 or more of the
following requirements:
(a) the amount of turnover of the company does not exceed 40
million;
(b) the balance sheet total of the company does not exceed 20 million;
(c) the average number of employees does not exceed 250.
(4) This section shall not apply to a company if it is
(a) a holding company,
(b) an ineligible company,
(c) a company that qualifies for the small companies regime, or
(d) a company that qualifies for the micro companies regime.
(5) In the application of this section to any period which is a financial year
but is not in fact a year, the amount specified in subsection (3)(a) shall
be proportionately adjusted.
(6) For the purposes of subsection (3)(c), the average number of
employees of a company shall be determined by applying the methods
specified in section 317 for determining the number required by
subsection (1)(a) of that section to be stated in a note to the financial
statements of a company.
(7) In this section, qualifying conditions mean the conditions referred to
in subsection (3).
Qualification of company as medium company: holding company
280G. (1) A holding company qualifies as a medium company in relation to a
financial year only if the group, in respect of which it is the holding
company, qualifies as a medium group.
(2) A group that is not excluded by subsection (5) qualifies as a medium
group in relation to the first financial year of the holding company if
the qualifying conditions are satisfied in respect of that year.
(3) A group that is not excluded by subsection (5) qualifies as a medium
group in relation to a subsequent financial year (in this subsection
referred to as relevant year) of the holding company if the qualifying
conditions
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PT.2 S.15 [No. 9.] Companies (Accounting) Act 2017. [2017.]
(a) are satisfied in respect of the relevant year and the financial year
immediately preceding the relevant year,
(b) are satisfied in respect of the relevant year and the group qualified
as a medium group in relation to the financial year immediately
preceding the relevant year, or
(c) were satisfied in the financial year immediately preceding the
relevant year and the group qualified as a medium group in relation
to that preceding financial year.
(4) The qualifying conditions for a medium group are satisfied by a group
if, in relation to a financial year, it fulfils 2 or more of the following
requirements:
(a) the aggregate amount of turnover of the group does not exceed 40
million net (or 48 million gross);
(b) the aggregate balance sheet total of the group does not exceed 20
million net (or 24 million gross);
(c) the aggregate average number of employees of the group does not
exceed 250.
(5) This section shall not apply to the holding company of a group if any
member of the group is an ineligible entity.
(6) In the application of this section to any period which is a financial year
but is not in fact a year, the amounts specified in subsection (4)(a)
shall be proportionally adjusted.
(7) The aggregate figures referred to in subsection (4) shall be ascertained
by aggregating the equivalent figures determined in accordance with
section 280F for each member of the group.
(8) Where a group proposes to satisfy the qualifying conditions referred to
in subsection (4) on the basis of the requirements of paragraphs (a)
and (b) of that subsection, it may do so on the basis of either the net
figures or the gross figures respectively for both of the said
paragraphs.
(9) The figures for each subsidiary undertaking shall be those included in
its entity financial statements for the relevant financial year
(a) if its financial year ends with that of the holding company, that
financial year, and
(b) if not, its financial year ending last before the end of the financial
year of the holding company.
(10) In this section
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PT.2 S.16 [No. 9.] Companies (Accounting) Act 2017. [2017.]
and
(c) in subsection (8)
(i) by the substitution of in accordance with subsection (6A) or (7) for
following a relevant change of circumstances, and
(ii) by the substitution of subsections (6), (6A) and (7) for subsections (6)
and (7).
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.17
(6A) In the case of a micro company that elects to adopt the micro company
regime, it shall be presumed that compliance with
(a) Schedule 3B,
(b) applicable accounting standards, and
(c) the other provisions of this Act,
shall be sufficient to give a true and fair view of the matters referred to
in subsection (2), and accordingly, subsections (4), (5) and (6) shall
not apply to a company that qualifies for the micro companies
regime..
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.20
(b) by the substitution, in subsection (4), of Schedule 4 or 4A, as the case may be,
for Schedule 4, and
(c) by the insertion of the following subsection after subsection (3):
(3A) Companies Act group financial statements shall state the following:
(a) the name and legal form of the holding company;
(b) the place of registration of the holding company and the number
under which it is registered;
(c) the address of its registered office;
(d) where the holding company is being wound up, the information
required by section 595..
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(ii) in paragraph (b), by the substitution of more than 50 per cent but not more
than 90 per cent for more than 50 per cent,
(b) in subsection (4)
(i) in paragraph (b), by the substitution of the following subparagraph for
subparagraph (i):
(i) the provisions of the Accounting Directive, or,
(ii) in paragraph (c), by the substitution of discloses in the notes to its entity
financial statements for discloses in its entity financial statements, and
(iii) in paragraph (d), by the substitution of the following subparagraph for
subparagraph (i):
(i) the address of the holding undertakings registered office or,
where the holding undertaking is incorporated outside the State,
the registered office (howsoever described) of the undertaking
in the country in which it is incorporated, or,
(c) in subsection (6), by the substitution of For the purposes of paragraphs (aa) and
(b) of subsection (2) for For the purposes of paragraph (b) of subsection (2),
and
(d) by the substitution of the following subsection for subsection (8):
(8) In this section, consolidated annual report means the report prepared
by management of the group in accordance with the Accounting
Directive and is equivalent to the expression directors report as used
in this Part..
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.23
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.27
paid to, or receivable by, third parties for making available the services
of any person
(a) as a director of the company,
(b) as director of any of its subsidiary undertakings, or
(c) otherwise in connection with the management of the companys
affairs or any of its subsidiary undertakings.
(2) The amount to be shown for the purposes of subsection (1) shall
(a) include all relevant sums paid by or receivable from
(i) the company,
(ii) the companys subsidiary undertakings,
(iii) any holding undertaking of the company, and
(iv) any other person,
and
(b) distinguish between the sums respectively paid by, or receivable
from, the company, the companys subsidiary undertakings, any
holding undertaking of the company and any other persons.
(3) A company that qualifies for the micro companies regime shall be
exempt from the requirements of this section.
(4) For the purposes of subsection (1)
(a) (i) the reference to consideration includes benefits otherwise than
in cash and the reference to the aggregate amount is to the
estimated monetary value of the benefits, and
(ii) the nature of any such consideration referred to in subparagraph
(i) shall be disclosed,
and
(b) the reference to third parties means a person other than
(i) the director or a person connected with that director,
(ii) a body corporate controlled by that director, or
(iii) the company or any of its subsidiary undertakings..
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(2) The amounts to be shown for the purpose of section 305 for any
financial year shall be the sums receivable in respect of that year,
whenever paid, or, in the case of sums not receivable in respect of a
period, the sums paid during that year, so, however, that where
(a) any sums are not shown in the statutory financial statements for the
relevant financial year on the ground that the person receiving them
is liable to account for them as mentioned in subsection (13)(a) of
section 305, but the liability is thereafter wholly or partly released
or is not enforced within a period of 2 years, or
(b) any sums paid by the way of expenses allowance are chargeable to
income tax after the end of the relevant financial year,
those sums shall, to the extent to which the liability is released or not
enforced or they are chargeable as so mentioned, as the case may be,
be shown in the first statutory financial statements in which it is
practicable to show them and shall be distinguished from the amounts
to be shown in those statements apart from this provision.
(3) Where it is necessary to do so for the purpose of making any
distinction required by sections 305, 305A or this section in any
amount to be shown for the purpose of any one of those sections, the
directors may apportion any payments between the matters in respect
of which they have been paid or which are receivable or have been
paid or are payable to third parties in such manner as they think
appropriate.
(4) If, in the case of any statutory financial statements, the requirements of
section 305, 305A or this section are not complied with, it shall be the
duty of the statutory auditors of the company by whom the statutory
financial statements are examined to include in the report on those
statements, so far as they are reasonably able to do so, a statement
giving the required particulars.
(5) In sections 305 and 305A, any reference to a companys subsidiary
undertaking
(a) in relation to a person who is or was, while a director of the
company, a director also, by virtue of the companys nomination,
direct or indirect, of any other body corporate, shall, subject to
paragraph (b), include that body corporate, whether or not it is or
was in fact the companys subsidiary undertaking, and
(b) shall
(i) for the purpose of subsections (3) to (6) and (8) to (10) of
section 305, be taken as referring to a subsidiary undertaking at
the time the services were rendered, and, for the purpose of
subsection (12) of that section, be taken as referring to a
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.28
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.35
(4) A company that qualifies for the small companies regime or the micro
companies regime shall be exempt from the requirements of this
section..
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.40
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PT.2 S.41 [No. 9.] Companies (Accounting) Act 2017. [2017.]
(e) in subsection (7), by the substitution of subsections (1), (1A), (3) and (4) for
subsections (1), (3) and (4).
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2
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PT.2 [No. 9.] Companies (Accounting) Act 2017. [2017.]
Exemption from filing certain information for small and micro companies
51. The Principal Act is amended by the substitution of the following section for section 352:
352. (1) The exemption in subsection (2) is available for a company that
(a) qualifies for the small companies regime (or the micro companies
regime), and
(b) has not elected to prepare group financial statements in accordance
with section 293.
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PT.2 S.52 [No. 9.] Companies (Accounting) Act 2017. [2017.]
and
(iii) by the insertion of the following paragraph after paragraph (c):
(d) the statement of changes in equity of the company.,
and
(b) in subsection (3)
(i) by the substitution of the following paragraph for paragraph (c):
(c) any other notes to the financial statements, including the notes
relating to profit and loss account items applicable to the small or
micro company concerned and, in particular, the information
required by paragraph 53 of Schedule 3A in the case of a small
company,,
(ii) by the substitution of the following paragraph for paragraph (d):
(d) the information required by paragraph 48 of Schedule 3A in the
case of a small company or paragraph 33 of Schedule 3B in the
case of a micro company, even where the company has elected to
include it in the profit and loss account, and,
and
(iii) by the insertion of the following paragraph after paragraph (d):
(e) any information provided in accordance with subsections (4), (5)
and (6) of section 291..
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.61
(b) in subsection (3), by the insertion of to which the statutory financial statements
or (as appropriate) abridged financial statements have been annexed after of
any of the relevant bodies, and
(c) by the substitution of the following subsection for subsection (4):
(4) If the annual return referred to in paragraph (a) of subsection (2) is the
first annual return of one or more, but not all, of the relevant bodies, to
which the statutory financial statements or (as appropriate) abridged
financial statements have been annexed, the condition referred to in
paragraph (b) of that subsection is that there has been delivered to the
Registrar, in compliance with section 343, the annual return of each of
the relevant bodies (excluding any of them, the annual return of which
is its first annual return to which the statutory financial statements or
(as appropriate) abridged financial statements have been annexed) to
which the particular relevant bodys statutory financial statements or
(as appropriate) abridged financial statements for the preceding
financial year were annexed..
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.68
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PT.2 [No. 9.] Companies (Accounting) Act 2017. [2017.]
,
and
(b) in Part 3, by the insertion of the following:
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2
No requirement to deliver financial statements, etc. with annual return in case of certain
ULCs
78. (1) The Principal Act is amended by the substitution of the following section for section
1274:
1274.(1)Other than in the case of a designated ULC, sections 347 and 348
(which require documents to be annexed to annual returns) shall not
apply to an ULC.
(2) In this section designated ULC means
(a) an ULC that at any time during the relevant financial year
(i) has been a subsidiary undertaking of an undertaking which was
at that time limited,
(ii) has had rights exercisable in respect of it by or on behalf of 2 or
more undertakings which were at that time limited, being rights
which if exercisable by one of the undertakings would have
made the ULC a subsidiary undertaking of it, or
(iii) has been a holding company of an undertaking which was at that
time limited,
(b) an ULC which is a credit institution or an insurance undertaking or
the holding company of a credit institution or an insurance
undertaking,
(c) an ULC, all of the members of which are
(i) companies limited by shares or by guarantee,
(ii) unlimited companies, each of whose members is a limited
company,
(iii) partnerships which are not limited partnerships, each of whose
members is a limited company,
(iv) limited partnerships, each of whose general partners (within the
meaning of the Limited Partnerships Act 1907) is a limited
company, or
(v) any combination of the types of bodies referred to in the
preceding subparagraphs of this paragraph and paragraph (a),
or
(d) an ULC, the direct or indirect members of which comprise any
combination of ULCs and bodies referred to in paragraph (c) such
that the ultimate beneficial owners enjoy the protection of limited
liability.
(3) References in subsection (2) to a limited company, an unlimited
company, a partnership or a limited partnership shall include
references to a body which is not governed by the law of the State but
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.80
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CHAPTER 5
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2
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PT.2 S.86 [No. 9.] Companies (Accounting) Act 2017. [2017.]
Payments to governments
87. The Principal Act is amended by the insertion of the following Part after Part 25:
PART 26
PAYMENTS TO GOVERNMENTS
CHAPTER 1
Preliminary
Interpretation
1449.(1) In this Part
consolidated payment report has the meaning assigned to it by
section 1451;
entity payment report has the meaning assigned to it by section 1450;
equivalent reporting requirements means third country reporting
requirements assessed as equivalent to the requirements of Chapter 10
of the Accounting Directive in accordance with Article 46 of that
Directive;
logging undertaking means an undertaking which undertakes in
primary forests the activity referred to in Section A, Division 02,
Group 02.2 of Annex I to Regulation (EC) No. 1893/2006 of the
European Parliament and of the Council of 20 December 2006 4
establishing the statistical classification of economic activities NACE
Revision 2 as set out in Table 1 of Schedule 18; and logging
company shall be read accordingly;
mining or quarrying undertaking means an undertaking which
performs any activity involving the exploration, prospection,
discovery, development, and extraction of minerals, oil, natural gas
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.87
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PT.2 S.87 [No. 9.] Companies (Accounting) Act 2017. [2017.]
CHAPTER 2
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.87
CHAPTER 3
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PT.2 S.87 [No. 9.] Companies (Accounting) Act 2017. [2017.]
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.87
CHAPTER 4
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PT.2 S.87 [No. 9.] Companies (Accounting) Act 2017. [2017.]
CHAPTER 5
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.87
CHAPTER 6
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.2 S.89
(b) by the insertion of the text set out in Schedule 2 as Schedule 3A to that Act,
(c) by the insertion of the text set out in Schedule 3 as Schedule 3B to that Act,
(d) by the substitution of the text set out in Schedule 4 for Schedule 4 to that Act,
(e) by the insertion of the text set out in Schedule 5 as Schedule 4A to that Act, and
(f) by the insertion of the text set out in Schedule 6 as Schedule 18 to that Act.
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[No. 9.] Companies (Accounting) Act 2017. [2017.]
PART 3
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.3
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PT.3 S.96 [No. 9.] Companies (Accounting) Act 2017. [2017.]
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.3
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PT.3 S.98 [No. 9.] Companies (Accounting) Act 2017. [2017.]
(i) in section 823(5), by the substitution of section 895 for section 894,
(j) in section 1178(5), by the substitution of section 1190 for section 1189,
(k) in section 1205
(i) in paragraph (b), by the substitution of subsection (9) for subsection (8),
and
(ii) by the substitution of the following paragraph for paragraph (c):
(c) in subsection (10), there shall be substituted such death or
revocation for such death, insanity, revocation or transfer.,
(l) in section 1312(5), by the substitution of section 1002 for section 1004, and
(m) in section 1317(1)(a)(iv), by the substitution of section 1319 for section
1318.
PART 4
MISCELLANEOUS
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PT.4 S.100 [No. 9.] Companies (Accounting) Act 2017. [2017.]
(2) A company to which this Regulation applies shall, once in every year
after the expiration of its first financial year, deliver to the Registrar, in
the prescribed manner, copies of the documents referred to in
paragraph (3) not later than 11 months after the end of the companys
financial year.
(3) The documents are as follows, namely:
(a) the statutory financial statements of the company for the financial
year;
(b) the directors report, including any group directors report for the
financial year;
(c) the statutory auditors report on those financial statements and that
directors report.
(4) The reference in paragraph (2) to a copy of a document is a reference
to a copy that satisfies the following conditions:
(a) it is a true copy of the original save for the difference that the
signature or signatures on the original, and any date or dates
thereon, shall appear in typeset form on the copy;
(b) it is accompanied by a certificate of a director and the secretary of
the company, that bears the signature of the director and the
secretary in electronic or written form, stating that the copy is a
true copy of the original (and one such certificate relating to all
documents referred to in paragraph (2) suffices and the foregoing
statement need not be qualified on account of the difference
permitted by paragraph (a) as to the form of a signature or of a
date).
(5) Section 376 of the Companies Act 2014 shall apply to a company to
which this Regulation applies as if the following subsection were
substituted for subsection (1):
(1) This section has effect where the directors of an investment
company to which Regulation 42A of the European
Communities (Undertakings for Collective Investment in
Transferable Securities) Regulations 2011 (S.I. No. 352 of 2011)
(inserted by section 100 of the Companies (Accounting) Act
2017) applies have prepared revised financial statements or a
revised directors report under section 367 and a copy of the
original statutory financial statements or directors report, has
been delivered to the Registrar under that Regulation..
(6) If an investment company to which this Regulation applies fails to
comply with the requirements of this Regulation, the company and any
officer of it who is in default is guilty of an offence.
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[2017.] Companies (Accounting) Act 2017. [No. 9.] PT.4 S.100
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[No. 9.] Companies (Accounting) Act 2017. [2017.]
SCHEDULE 1
SCHEDULE 3
ACCOUNTING PRINCIPLES, FORM AND CONTENT OF ENTITY FINANCIAL STATEMENTS
PART I
PART II
SECTION A
GENERAL RULES
2. (1) Subject to the provisions of this Schedule
(a) every balance sheet of a company shall show the items listed
in either of the balance sheet formats set out in Section B, and
(b) every profit and loss account of a company shall show the
items listed in either of the profit and loss accounts formats
so set out,
in either case in the order and under the headings and sub-
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[2017.] Companies (Accounting) Act 2017. [No. 9.] SCH.1
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SECTION B
THE REQUIRED FORMATS FOR FINANCIAL STATEMENTS
Preliminary
8. References in this Part to the items listed in any of the formats set out
in this Part are references to those items read together with any notes
following the formats which apply to any of those items.
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9. A number in brackets following any item in, or any heading to, any of
the formats set out in this Part is a reference to the note of that number
in the notes following the formats.
10. In the notes following the formats
(a) the heading of each note gives the required heading or sub-
heading for the item to which it applies and a reference to any
letters and numbers assigned to that item in the formats set
out in this Part, and
(b) references to a numbered format are references to the balance
sheet format or (as the case may require) to the profit and loss
account format of that number set out in this Part.
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10. Accruals
11. Deferred income (7)
D. Net current assets (liabilities)
E. Total assets less current liabilities
F. Creditors: Amounts falling due after more than one year
1. Debenture loans (4)
2. Amounts owed to credit institutions
3. Called-up share capital presented as a liability (8)
4. Payments received on account (5)
5. Trade creditors
6. Bills of exchange payable
7. Amounts owed to group undertakings
8. Amounts owed to undertakings with which the company
is linked by virtue of participating interests
9. Other creditors including tax and social insurance (6)
10. Accruals
11. Deferred income (7)
G. Provisions for liabilities
1. Retirement benefit and similar obligations
2. Taxation, including deferred taxation
3. Other provisions for liabilities
H. Capital and reserves
I. Called-up share capital presented as equity (8)
II. Share premium account
III. Revaluation reserve
IV. Other reserves
1. Other undenominated capital
2. Reserve for own shares held
3. Reserves provided for by the constitution
4. Other reserves including the fair value reserve (specified
as necessary)
V. Profit or loss brought forward (10)
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PART III
SECTION A
ACCOUNTING PRINCIPLES
Preliminary
11. Subject to paragraph 18, the amounts to be included in the financial
statements of a company in respect of the items shown shall be
determined in accordance with the principles set out in paragraphs 12
to 17.
Accounting principles
12. The company shall be presumed to be carrying on business as a going
concern.
13. Accounting policies and measurement bases shall be applied
consistently from one financial year to the next.
14. The amount of any item in the financial statements shall be determined
on a prudent basis and in particular
(a) only profits realised at the financial year end date shall be
included in the profit and loss account,
(b) all liabilities which have arisen in the course of the financial
year to which the financial statements relate or of a previous
financial year shall be taken into account, even if such
liabilities only become apparent between the financial year
end date and the date on which the financial statements are
signed under section 324, and
(c) all value adjustments for diminution in value shall be
recognised, whether the result for the financial year to which
the financial statements relate is a profit or loss.
15. All income and expenses relating to the financial year to which the
financial statements relate shall be taken into account without regard
to the date of receipt or payment.
16. In determining the aggregate amount of any item the amount of each
individual asset or liability that falls to be taken into account shall be
determined separately.
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17. Items in the profit and loss account and balance sheet shall be
accounted for and presented having regard to the substance of the
reported transaction or arrangement in accordance with applicable
accounting standards.
18. The provisions of this Schedule need not be complied with where the
amounts involved are not material for the purpose of giving a true and
fair view.
SECTION B
HISTORICAL COST ACCOUNTING RULES
Preliminary
20. Subject to sections C and D, the amounts to be included in respect of
all items shown in a companys financial statements shall be
determined in accordance with the rules set out in paragraphs 21 to 30.
FIXED ASSETS
General Rules
21. Subject to any value adjustment for depreciation or diminution in
value made in accordance with paragraph 22 or 23 the amount to be
included in respect of any fixed asset shall be its purchase price or
production cost.
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CURRENT ASSETS
26. Subject to paragraph 27, the amount to be included in respect of any
current asset shall be its purchase price or production cost.
27. (1) If the net realisable value of any current asset is lower than its
purchase price or production cost, the amount to be included in
respect of that asset shall be the net realisable value.
(2) Where the reasons for which any value adjustment for diminution
in value was made under subparagraph (1) have ceased to apply to
any extent that value adjustment shall be written back to the
extent that it is no longer necessary.
MISCELLANEOUS
Excess of money owed over value received as an asset item
28. (1) Where the amount repayable on any debt owed by a company is
greater than the value of the consideration received in the
transaction giving rise to the debt, the amount of the difference
may be treated as an asset.
(2) Where any such amount exists
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SECTION C
ALTERNATIVE ACCOUNTING RULES
Preliminary
31. (1) The rules set out in section B are referred to subsequently in this
Schedule as the historical cost accounting rules.
(2) Those rules, with the omission of paragraphs 20, 29 and 30, are
referred to subsequently in this Part as the depreciation rules; and
references subsequently in this Schedule to the historical cost
accounting rules do not include the depreciation rules as they
apply by virtue of paragraph 34.
32. Subject to paragraphs 34 to 37, the amounts to be included in respect
of assets of any description mentioned in paragraph 33 may be
determined on any basis so mentioned.
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Revaluation Reserve
36. (1) With respect to any determination of the value of an asset of a
company on any basis mentioned in paragraph 33(1) to (3), the
amount of any profit or loss arising from that determination (after
allowing, where appropriate, for any value adjustments for
depreciation or diminution in value made otherwise than by
reference to the value so determined and any adjustments of any
such value adjustments made in the light of that determination)
shall be credited or, as the case may be, debited to a separate
reserve (referred to in this paragraph as the revaluation reserve).
(2) The amount of the revaluation reserve shall be shown in the
companys balance sheet under a separate sub-heading in the
position given for the item revaluation reserve under Capital
and Reserves in Format 1 or 2 of the balance sheet formats set
out in Part II.
(3) An amount may be transferred
(a) from the revaluation reserve
(i) to the profit and loss account, if the amount was
previously charged to that account, or it represents
realised profit, or
(ii) on capitalisation,
or
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SECTION D
FAIR VALUE ACCOUNTING RULES
Inclusion of financial instruments at fair value
38. (1) Financial instruments that, under IFRS, may be accounted for in
financial statements at fair value, may be so accounted for in
financial statements to which the provisions of this Schedule
apply, provided that the disclosures required by IFRS are made.
(2) In this paragraph, fair value means fair value determined in
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Hedged items
39. A company may include any assets or liabilities, or identified portions
of such assets or liabilities that qualify as hedged items under a fair
value hedge accounting system at the amount required under that
system.
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PART IV
Preliminary
43. (1) Any information required in the case of any company by the
following provisions of this Part shall (if not given in the
companys financial statements) be given by way of a note to
those financial statements.
(2) These notes shall be presented in the order in which, where
relevant, the items to which they relate are presented in the
balance sheet and in the profit and loss account.
Debentures
45. (1) If the company has issued any debentures during the financial
year to which the financial statements relate, the following
information shall be given:
(a) the reason for making the issue;
(b) the classes of debentures issued;
(c) in respect of each class of debentures, the amount issued and
the consideration received by the company for the issue.
(2) Where any of the companys debentures are held by a nominee of
or trustee for the company, the nominal amount of the debentures
and the amount at which they are stated in the accounting records
kept by the company in accordance with section 281 shall be
stated.
Fixed assets
46. (1) In respect of each item which is or would, but for paragraphs 2(2)
and 4(4)(b), be shown under the general item fixed assets in the
companys balance sheet, the following information shall be
given:
(a) the appropriate amounts in respect of that item as at the date
of the beginning of the financial year and as at the financial
year end date respectively;
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(a) the years (so far as they are known to the directors) in which
the assets were severally valued and the several values;
(b) in the case of assets that have been valued during the
financial year, the names of the persons who valued them or
particulars of their qualifications for doing so and (in either
case) the bases of valuation used by them.
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50. Where the company has derivative financial instruments that it has not
accounted for at fair value, there shall be stated for each class of such
derivatives
(a) the fair value of the derivatives in that class, if such a value
can be determined in accordance with paragraph 38, and
(b) the extent and nature of the derivatives.
51. Where
(a) a company has financial assets which could be included at
fair value by virtue of paragraph 38,
(b) those assets are included in the companys financial
statements at an amount in excess of their fair value, and
(c) the company has not made a value adjustment for the
diminution in value of those assets in accordance with
paragraph 23(1),
there shall be stated
(i) the amount at which either the individual assets or
appropriate groupings of those assets is stated in the
companys financial statements,
(ii) the fair value of those assets or groupings, and
(iii) the reasons for not making a value adjustment for diminution
in value of those assets, including the nature of the evidence
that provides the basis for the belief that the amount at which
they are stated in the financial statements will be recovered.
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Details of indebtedness
56. (1) In respect of each item shown under creditors in the companys
balance sheet there shall be stated the aggregate amount of any
debts included under that item which fall due for payment or
repayment after the end of the period of 5 years beginning with
the day next following the end of the financial year.
(2) Subject to subparagraph (3), in relation to each debt falling to be
taken into account under subparagraph (1), the terms of payment
or repayment and the rate of any interest payable on the debt shall
be stated.
(3) If the number of debts is such that, in the opinion of the directors,
compliance with subparagraph (2) would result in a statement of
excessive length, it shall be sufficient to give a general indication
of the terms of payment or repayment and the rates of any interest
payable on the debts.
(4) In respect of each item shown under creditors in the companys
balance sheet there shall be stated
(a) the aggregate amount of any debts included under that item in
respect of which any security has been given, and
(b) an indication of the nature of the securities so given.
(5) References in subparagraph (1) to an item shown under creditors
in the companys balance sheet include references, where amounts
falling due to creditors within one year and after more than one
year are distinguished in the balance sheet
(a) in a case within subparagraph (1), to an item shown under the
latter of those categories, and
(b) in a case within subparagraph (4), to an item shown under
either of those categories,
and references to items shown under creditors include references
to items which would, but for paragraphs 2(2) or 4(4)(b), be
shown under that heading.
57. If any fixed cumulative dividends on the companys shares are in
arrears, there shall be stated, distinguishing between those shares
presented as a liability and other shares
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Particulars of tax
61. (1) The basis on which the charge for corporation tax, income tax and
other taxation on profits (whether payable in or outside the State)
is computed shall be stated.
(2) Particulars shall be given of any special circumstances which
affect the liability in respect of taxation on profits, income or
capital gains for the financial year concerned or the liability in
respect of taxation of profits, income or capital gains for
succeeding financial years.
(3) The amount of the charge for corporation tax, income tax and
other taxation on profits or capital gains, so far as charged to
revenue, including taxation payable outside the State on profits
(distinguishing where practicable between corporation tax and
other taxation) shall be stated.
(4) The amounts referred to in subparagraph (3) shall be stated
separately in respect of each of the amounts which is or would,
but for paragraph 4(4)(b), be shown under the following item in
the profit and loss account, that is to say, tax on profit or loss.
Particulars of turnover
62. (1) If, in the course of the financial year, the company has carried on
business of 2 or more classes which, in the opinion of the
directors, differ substantially from each other, there shall be stated
in respect of each class (describing it) the amount of the turnover
attributable to that class.
(2) If, in the course of the financial year, the company has supplied
markets which, in the opinion of the directors, differ substantially
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General information
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Foreign currencies
66. Where sums originally denominated in foreign currencies have been
brought into account under any items shown in the balance sheet or
profit and loss account, the basis on which those sums have been
translated into euro or, if different, the functional currency of the
company, shall be stated.
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PART V
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PART VI
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Capitalisation
74. References in this Schedule to capitalising any work or costs are
references to treating that work or those costs as a fixed asset.
Investment property
75. In this Schedule, investment property means land or buildings (or
both) held to earn rentals or for capital appreciation (or both).
Listed investments
76. In this Schedule, listed investments means investments as respects
which there has been granted a listing on
(a) any regulated market or other stock exchange in the State,
(b) any regulated market or other stock exchange of repute in any
other EEA state, or
(c) any stock exchange of repute in a state that is not an EEA
state.
Loans
77. For the purposes of this Schedule, a loan shall be treated as falling due
for payment, and an instalment of a loan shall be treated as falling due
for payment, on the earliest date on which the lender could require
repayment or (as the case may be) payment, if the lender exercised all
options and rights available to him or her.
Materiality
78. In this Schedule, material means the status of information where its
omission or misstatement could reasonably be expected to influence
decisions that users make on the basis of the financial statements of
the undertaking; and the materiality of individual items shall be
assessed in the context of other similar items.
Value adjustments
79. (1) References in this Schedule to value adjustments for depreciation
or diminution in value of assets are references to any amount
written off by way of providing for depreciation or diminution in
value of assets.
(2) Any reference in the profit and loss account formats set out in Part
II to the depreciation of, or amounts written off, assets of any
description is a reference to the movement in any value
adjustment for depreciation or diminution in value of assets of
that description.
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Provisions
80. References in this Schedule to provisions for liabilities are references
to any amount retained as reasonably necessary for the purpose of
providing for any liability the nature of which is clearly defined and
which exists at the financial year end date but, as respects the amount
of which or the date on which it will be settled, there is uncertainty.
Purchase price
81. References in this Schedule (however expressed) to the purchase price
of an asset of a company or of any raw materials or consumables used
in the production of any such asset shall be read as including
references to any consideration (whether in cash or otherwise) given
by the company in respect of that asset or in respect of those materials
or consumables (as the case may require)..
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SCHEDULE 2
SCHEDULE 3A
ACCOUNTING PRINCIPLES, FORM AND CONTENT OF ENTITY FINANCIAL STATEMENTS OF A
COMPANY QUALIFYING FOR THE SMALL COMPANIES REGIME
PART I
PART II
SECTION A
GENERAL RULES
2. (1) Subject to the provisions of this Schedule
(a) every balance sheet of a company shall show the items listed
in either of the balance sheet formats set out in Section B, and
(b) every profit and loss account of a company shall show the
items listed in either of the profit and loss accounts formats
so set out,
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in either case in the order and under the headings and sub-
headings given in the format adopted.
(2) Notwithstanding subparagraph (1)(a), in preparing the balance
sheet of a company, the directors of the company may adapt one
of the balance sheet formats in Section B so as to distinguish
between current and non-current items in a different way,
provided that
(a) the information given is at least equivalent to that which
would have been required by the use of such format had it not
been thus adapted, and
(b) the presentation of those items is in accordance with
generally accepted accounting principles or practice.
(3) Notwithstanding subparagraph (1)(b), the directors of the
company may prepare a statement of the performance of the
company instead of a profit and loss account and in doing so may
adapt one of the profit and loss account formats in Section B,
provided that
(a) the information given is at least equivalent to that which
would have been required by the use of such format had it not
been thus adapted, and
(b) the presentation of those items is in accordance with
generally accepted accounting principles or practice.
(4) Subparagraph (1) shall not be read as requiring the heading or
sub-heading for any item in the balance sheet, or profit and loss
account, of a company to be distinguished by any letter or number
assigned to that item in the formats set out in Section B.
(5) So far as is practicable, the following provisions of this Schedule
shall apply to the balance sheet and profit and loss account of a
company notwithstanding any adaptation pursuant to
subparagraphs (2) and (3).
3. (1) Where, in accordance with paragraph 2(1), a companys balance
sheet or profit and loss account for any financial year has been
prepared by reference to one of the formats set out in Section B or
where in accordance with paragraph 2(2) or 2(3) one of the
formats has been adapted, the directors of the company shall
adopt the same format in preparing the financial statements for
subsequent financial years unless, in their opinion, there are
special reasons for a change.
(2) Where any change is made in the format adopted in preparing a
balance sheet or profit and loss account of a company, the reasons
for the change, together with full particulars of the change, shall
be given in a note to the financial statements in which the new
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SECTION B
THE REQUIRED FORMATS FOR FINANCIAL STATEMENTS
Preliminary
8. References in this Part to the items listed in any of the formats set out
in this Part are references to those items read together with any notes
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10. Accruals
11. Deferred income
D. Net current assets (liabilities)
E. Total assets less current liabilities
F. Creditors: Amounts falling due after more than one year
1. Debenture loans (4)
2. Amounts owed to credit institutions
3. Called-up share capital presented as a liability (6)
4. Payments received on account (5)
5. Trade creditors
6. Bills of exchange payable
7. Amounts owed to group undertakings
8. Amounts owed to undertakings with which the company
is linked by virtue of participating interests
9. Other creditors including tax and social insurance
10. Accruals
11. Deferred income
G. Provisions for liabilities
1. Retirement benefit and similar obligations
2. Taxation, including deferred taxation
3. Other provisions for liabilities
H. Capital and reserves
I. Called-up share capital presented as equity (6)
II. Share premium account
III. Revaluation reserve
IV. Other reserves
1. Other undenominated capital
2. Reserve for own shares held
3. Reserves provided for by the constitution
4. Other reserves including the fair value reserve (specified
as necessary)
V. Profit or loss brought forward (8)
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PART III
SECTION A
ACCOUNTING PRINCIPLES
Preliminary
11. Subject to paragraph 18, the amounts to be included in the financial
statements of a company in respect of the items shown shall be
determined in accordance with the principles set out in paragraphs 12
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to 17.
Accounting principles
12. The company shall be presumed to be carrying on business as a going
concern.
13. Accounting policies and measurement bases shall be applied
consistently from one financial year to the next.
14. The amount of any item in the financial statements shall be determined
on a prudent basis and in particular
(a) only profits realised at the financial year end date shall be
included in the profit and loss account,
(b) all liabilities which have arisen in the course of the financial
year to which the financial statements relate or of a previous
financial year shall be taken into account, even if such
liabilities only become apparent between the financial year
end date and the date on which the financial statements are
signed under section 324, and
(c) all value adjustments for diminution in value shall be
recognised, whether the result for the financial year to which
the financial statements relate is a profit or loss.
15. All income and expenses relating to the financial year to which the
financial statements relate shall be taken into account without regard
to the date of receipt or payment.
16. In determining the aggregate amount of any item the amount of each
individual asset or liability that falls to be taken into account shall be
determined separately.
17. Items in the profit and loss account and balance sheet shall be
accounted for and presented having regard to the substance of the
reported transaction or arrangement in accordance with applicable
accounting standards.
18. The provisions of this Schedule need not be complied with where the
amounts involved are not material for the purpose of giving a true and
fair view.
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SECTION B
HISTORICAL COST ACCOUNTING RULES
Preliminary
20. Subject to sections C and D, the amounts to be included in respect of
all items shown in a companys financial statements shall be
determined in accordance with the rules set out in paragraphs 21 to 30.
FIXED ASSETS
General rules
21. Subject to any value adjustment for depreciation or diminution in
value made in accordance with paragraph 22 or 23, the amount to be
included in respect of any fixed asset shall be its purchase price or
production cost.
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(3) Where the reasons for which any value adjustment was made in
accordance with subparagraph (1) or (2) have ceased to apply to
any extent, that value adjustment shall be written back to the
extent that it is no longer necessary; and any amounts written back
in accordance with this subparagraph which are not shown in the
profit and loss account shall be disclosed (either separately or in
aggregate) in a note to the financial statements.
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CURRENT ASSETS
26. Subject to paragraph 27, the amount to be included in respect of any
current asset shall be its purchase price or production cost.
27. (1) If the net realisable value of any current asset is lower than its
purchase price or production cost, the amount to be included in
respect of that asset shall be the net realisable value.
(2) Where the reasons for which any value adjustment for diminution
in value was made under subparagraph (1) have ceased to apply to
any extent that value adjustment shall be written back to the
extent that it is no longer necessary.
MISCELLANEOUS
Excess of money owed over value received as an asset item
28. (1) Where the amount repayable on any debt owed by a company is
greater than the value of the consideration received in the
transaction giving rise to the debt, the amount of the difference
may be treated as an asset.
(2) Where any such amount exists
(a) it shall be written off by reasonable amounts each year and
shall be completely written off before repayment of the debt,
and
(b) if the amount not written off is not shown as a separate item
in the companys balance sheet, it shall be disclosed in a note
to the financial statements.
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SECTION C
ALTERNATIVE ACCOUNTING RULES
Preliminary
31. (1) The rules set out in Section B are referred to subsequently in this
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Revaluation Reserve
36. (1) With respect to any determination of the value of an asset of a
company on any basis mentioned in paragraph 33(1) to (3), the
amount of any profit or loss arising from that determination (after
allowing, where appropriate, for any value adjustments for
depreciation or diminution in value made otherwise than by
reference to the value so determined and any adjustments of any
such value adjustments made in the light of that determination)
shall be credited or, as the case may be, debited to a separate
reserve (referred to in this paragraph as the revaluation reserve).
(2) The amount of the revaluation reserve shall be shown in the
companys balance sheet under a separate sub-heading in the
position given for the item revaluation reserve under Capital
and Reserves in Format 1 or 2 of the balance sheet formats set
out in Part II.
(3) An amount may be transferred
(a) from the revaluation reserve
(i) to the profit and loss account, if the amount was
previously charged to that account, or it represents
realised profit, or
(ii) on capitalisation,
or
(b) to or from the revaluation reserve in respect of the taxation
relating to any profit or loss credited or debited to the reserve
and the revaluation reserve shall be reduced to the extent that
the amounts transferred to it are no longer necessary for the
purpose of the valuation methods used.
(4) In subparagraph (3)(a)(ii) capitalisation, in relation to an amount
standing to the credit of the revaluation reserve, means applying it
in wholly or partly paying up unissued shares in the company to
be allotted to members of the company as fully or partly paid
shares.
(5) The revaluation reserve shall not be reduced except as mentioned
in this paragraph.
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SECTION D
FAIR VALUE ACCOUNTING RULES
Inclusion of financial instruments at fair value
38. (1) Financial instruments that, under IFRS, may be accounted for in
financial statements at fair value, may be so accounted for in
financial statements to which the provisions of this Schedule
apply, provided that the disclosures required by IFRS are made.
(2) In this paragraph, fair value means fair value determined in
accordance with relevant IFRS.
Hedged items
39. A company may include any assets or liabilities, or identified portions
of such assets or liabilities that qualify as hedged items under a fair
value hedge accounting system at the amount required under that
system.
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PART IV
Preliminary
43. (1) Any information required in the case of any company by the
following provisions of this Part shall (if not given in the
companys financial statements) be given by way of a note to
those financial statements.
(2) These notes shall be presented in the order in which, where
relevant, the items to which they relate are presented in the
balance sheet and in the profit and loss account.
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Fixed assets
45. (1) In respect of each item which is or would, but for paragraphs 2(2)
and 4(4)(b), be shown under the general item fixed assets in the
companys balance sheet, the following information shall be
given:
(a) the appropriate amounts in respect of that item as at the date
of the beginning of the financial year and as at the financial
year end date respectively;
(b) the effect on any amount shown in the balance sheet in
respect of that item of
(i) any revision of the amount in respect of any assets
included under that item made during that year on any
basis mentioned in paragraph 33 or under the fair value
accounting rules,
(ii) acquisitions during that year of any assets,
(iii) disposals during that year of any assets, and
(iv) any transfers of assets of the company to and from that
item during that year.
(2) The reference in subparagraph (1)(a) to the appropriate amounts
in respect of any item as at any date there mentioned is a reference
to amounts representing the aggregate amounts determined, as at
that date, in respect of assets falling to be included under that
item
(a) on the basis of purchase price or production cost (determined
in accordance with paragraphs 29 and 30),
(b) on any basis mentioned in paragraph 33, or
(c) under the fair value accounting rules,
as the case may be, (leaving out of account in each of clauses (a),
(b) and (c) any value adjustments for depreciation or diminution
in value).
(3) In respect of each item within subparagraph (1)
(a) the cumulative amount of value adjustments for depreciation
or diminution in value of assets included under that item as at
each date mentioned in subparagraph (1)(a),
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Details of indebtedness
50. (1) In respect of each item shown under creditors in the companys
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that commitment.
(7) The aggregate amount of any commitments, guarantees or
contingencies referred to in subparagraph (2) which are
undertaken on behalf of or for the benefit of
(a) any holding undertaking or fellow subsidiary undertaking of
the company,
(b) any subsidiary undertaking of the company, or
(c) any undertaking in which the company has a participating
interest,
shall be separately stated and those within each of clause (a), (b)
and (c) of this subparagraph shall also be stated separately from
those within any other of those clauses.
Exceptional items
53. The profit and loss account or the notes to the financial statements
shall disclose information on the nature, amount and effect of
individual items of income and expenditure that are exceptional by
virtue of size or incidence.
General information
54. Paragraphs 55 and 56 require other information to be given in the
notes to the financial statements.
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PART V
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PART VI
Capitalisation
60. References in this Schedule to capitalising any work or costs are
references to treating that work or those costs as a fixed asset.
Investment property
61. In this Schedule, investment property means land or buildings (or
both) held to earn rentals or for capital appreciation (or both).
Loans
62. For the purposes of this Schedule, a loan shall be treated as falling due
for payment, and an instalment of a loan shall be treated as falling due
for payment, on the earliest date on which the lender could require
repayment or (as the case may be) payment, if the lender exercised all
options and rights available to him or her.
Materiality
63. In this Schedule, material means the status of information where its
omission or misstatement could reasonably be expected to influence
decisions that users make on the basis of the financial statements of
the undertaking; and the materiality of individual items shall be
assessed in the context of other similar items.
Value adjustments
64. (1) References in this Schedule to value adjustments for depreciation
or diminution in value of assets are references to any amount
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Provisions
65. References in this Schedule to provisions for liabilities are references
to any amount retained as reasonably necessary for the purpose of
providing for any liability the nature of which is clearly defined and
which exists at the financial year end date but, as respects the amount
of which or the date on which it will be settled, there is uncertainty.
Purchase price
66. References in this Schedule (however expressed) to the purchase price
of an asset of a company or of any raw materials or consumables used
in the production of any such asset shall be read as including
references to any consideration (whether in cash or otherwise) given
by the company in respect of that asset or in respect of those materials
or consumables (as the case may require)..
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SCHEDULE 3
SCHEDULE 3B
ACCOUNTING PRINCIPLES, FORM AND CONTENT OF FINANCIAL STATEMENTS OF A COMPANY
QUALIFYING FOR THE MICRO COMPANIES REGIME
PART I
PART II
SECTION A
GENERAL RULES
2. (1) Subject to the provisions of this Schedule
(a) every balance sheet of a company shall show the items listed
in either of the balance sheet formats set out in Section B, and
(b) every profit and loss account of a company shall show the
items listed in the profit and loss accounts format so set out,
in either case in the order and under the headings given in the
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format adopted.
(2) Subparagraph (1) shall not be read as requiring the heading for
any item in the balance sheet, or profit and loss account, of a
company to be distinguished by any letter or number assigned to
that item in the formats set out in Section B.
3. (1) Where, in accordance with paragraph 2(1)(a), a companys
balance sheet for any financial year has been prepared by
reference to one of the formats set out in Section B, the directors
of the company shall adopt the same format in preparing the
financial statements for subsequent financial years unless, in their
opinion, there are special reasons for a change.
(2) Where any change is made in the format adopted in preparing a
balance sheet of a company, the reasons for the change, together
with full particulars of the change, shall be given in a note to the
financial statements in which the new format is first adopted.
4. (1) Any item required in accordance with paragraph 2 to be shown in
the balance sheet or profit and loss account of a company may be
shown in greater detail than that required by the format adopted.
(2) The balance sheet or profit and loss account of a company may
include an item representing or covering the amount of any asset
or liability or income or expenditure not otherwise covered by any
of the items listed in the format adopted but the following shall
not be treated as assets in the balance sheet of a company
(a) preliminary expenses,
(b) expenses of and commission on any issue of shares or
debentures, and
(c) costs of research.
(3) The balance sheet or profit and loss account of a company may
include subtotals where their inclusion facilitates the assessment
of the financial position or profit or loss of the company for the
financial year concerned.
(4) Where an asset or liability relates to more than one of the items
listed in either of the balance sheet formats set out in Section B,
its relationship to other items shall be disclosed either under the
item where it is shown or in the notes to the financial statements.
(5) The opening balance sheet for each financial year shall
correspond to the closing balance sheet for the preceding financial
year.
5. In respect of every item shown in the balance sheet, or profit and loss
account, or notes thereto, of a company, the corresponding amount for
the financial year immediately preceding that to which the balance
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sheet or profit and loss account relates shall also be shown and, if that
corresponding amount is not comparable with the amount to be shown
for the item in question in respect of the financial year to which the
balance sheet or profit and loss account relates, the former amount
may be adjusted, and particulars of the adjustment and the reasons
therefor shall be given in a note to the financial statements.
6. (1) Subject to subparagraph (2), a heading corresponding to an item
listed in the format adopted in preparing the balance sheet or
profit and loss account of a company shall not be included in the
balance sheet or profit and loss account, as the case may be, if
there is no amount to be shown for that item in respect of the
financial year to which the balance sheet or profit and loss
account relates.
(2) Subparagraph (1) shall not apply in any case where an amount can
be shown for the item in question in respect of the financial year
immediately preceding that to which the balance sheet or profit
and loss account relates, and that amount shall be shown under the
heading required by the format adopted as aforesaid.
7. (1) Subject to subparagraph (2), amounts in respect of items
representing assets or income may not be set off in the financial
statements of a company against amounts in respect of items
representing liabilities or expenditure, as the case may be, or vice
versa.
(2) Subparagraph (1) shall not apply in any case where such set off is
in accordance with applicable accounting standards, provided that
the gross amounts are disclosed in a note to the financial
statements.
SECTION B
THE REQUIRED FORMATS FOR FINANCIAL STATEMENTS
Preliminary
8. References in this Part to the items listed in any of the formats set out
in this Part are references to those items read together with any notes
following the formats which apply to any of those items.
9. A number in brackets following any item in, or any heading to, any of
the formats set out in this Part is a reference to the note of that number
in the notes following the formats.
10. In the notes following the formats
(a) the heading of each note gives the required heading for the
item to which it applies and a reference to any letters and
numbers assigned to that item in the formats set out in this
Part, and
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PART III
SECTION A
ACCOUNTING PRINCIPLES
Preliminary
11. Subject to paragraph 18, the amounts to be included in the financial
statements of a company in respect of the items shown shall be
determined in accordance with the principles set out in paragraphs 12
to 17.
Accounting principles
12. The company shall be presumed to be carrying on business as a going
concern.
13. Accounting policies and measurement bases shall be applied
consistently from one financial year to the next.
14. The amount of any item in the financial statements shall be determined
on a prudent basis and in particular
(a) only profits realised at the financial year end date shall be
included in the profit and loss account,
(b) all liabilities which have arisen in the course of the financial
year to which the financial statements relate or of a previous
financial year shall be taken into account, even if such
liabilities only become apparent between the financial year
end date and the date on which the financial statements are
signed under section 324, and
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SECTION B
HISTORICAL COST ACCOUNTING RULES
Preliminary
20. The amounts to be included in respect of all items shown in a
companys financial statements shall be determined in accordance with
the rules set out in paragraphs 21 to 30.
FIXED ASSETS
General rules
21. Subject to any value adjustment for depreciation or diminution in
value made in accordance with paragraph 22 or 23, the amount to be
included in respect of any fixed asset shall be its purchase price or
production cost.
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the amount of
(a) its purchase price or production cost, or
(b) where it is estimated that any such asset will have a residual
value at the end of the period of its useful economic life, its
purchase price or production cost less that estimated residual
value,
shall be reduced by value adjustments for depreciation calculated to
write off that amount systematically over the period of the assets
useful economic life.
23. (1) Where a financial asset of a description falling to be included
under item A. III of either of the balance sheet formats set out in
Part II has diminished in value, value adjustments for diminution
in value may be made in respect of it and the amount to be
included in respect of it may be reduced accordingly; and any
such value adjustments which are not shown separately in the
profit and loss account shall be disclosed (either separately or in
aggregate) in a note to the financial statements.
(2) Value adjustments for diminution in value shall be made in
respect of any fixed asset which has diminished in value if the
reduction in its value is expected to be permanent (whether its
useful economic life is limited or not) and the amount to be
included in respect of it shall be reduced accordingly; and any
such value adjustments which are not shown separately in the
profit and loss account shall be disclosed (either separately or in
aggregate) in a note to the financial statements.
(3) Where the reasons for which any value adjustment was made in
accordance with subparagraph (1) or (2) have ceased to apply to
any extent, that value adjustment shall be written back to the
extent that it is no longer necessary; and any amounts written back
in accordance with this subparagraph which are not shown in the
profit and loss account shall be disclosed (either separately or in
aggregate) in a note to the financial statements.
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(a) the period over which the amount of those costs originally
capitalised is being or is to be written off, and
(b) the reasons for capitalising the costs in question.
25. (1) The application of paragraphs 21 to 23 in relation to goodwill and
development costs (in any case where goodwill or development
costs are treated as assets) and other intangible assets is subject to
the following provisions of this paragraph.
(2) Subject to subparagraph (3)
(a) the amount of the consideration for any goodwill acquired by
a company,
(b) the amount of development costs capitalised, or
(c) the amount of other intangible assets recognised,
shall be reduced by value adjustments for depreciation calculated
to write off that amount systematically over the useful economic
life of the goodwill, development costs or other intangible assets.
(3) Where, in exceptional circumstances, the useful life of goodwill
acquired by a company or development costs or other intangible
assets capitalised cannot be reliably estimated, the amounts
referred to in subparagraph (2)(a), (b) and (c) shall be reduced by
value adjustments for depreciation calculated to write off those
amounts systematically over a period which shall be not more
than 10 years.
(4) In any case where any goodwill acquired by a company is shown
or included as an asset in the companys balance sheet, the period
chosen for writing off the consideration for that goodwill and the
reasons for choosing that period shall be disclosed in a note to the
financial statements.
(5) Where, in accordance with paragraph 23(2), a value adjustment
for diminution in value has been recognised for goodwill, even if
it is considered that the reason for the diminution in value has
ceased to exist, the value adjustment shall not be reversed as
required by paragraph 23(3).
CURRENT ASSETS
26. Subject to paragraph 27, the amount to be included in respect of any
current asset shall be its purchase price or production cost.
27. (1) If the net realisable value of any current asset is lower than its
purchase price or production cost, the amount to be included in
respect of that asset shall be the net realisable value.
(2) Where the reasons for which any value adjustment for diminution
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MISCELLANEOUS
Excess of money owed over value received as an asset item
28. (1) Where the amount repayable on any debt owed by a company is
greater than the value of the consideration received in the
transaction giving rise to the debt, the amount of the difference
may be treated as an asset.
(2) Where any such amount exists
(a) it shall be written off by reasonable amounts each year and
shall be completely written off before repayment of the debt,
and
(b) if the amount not written off is not shown as a separate item
in the companys balance sheet, it shall be disclosed in a note
to the financial statements.
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PART IV
Preliminary
31. (1) Any information required in the case of any company by the
following provisions of this Part shall (if not given in the
companys financial statements) be given by way of a note to
those financial statements.
(2) These notes shall be presented in the order in which, where
relevant, the items to which they relate are presented in the
balance sheet and in the profit and loss account.
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Details of indebtedness
34. In respect of creditors shown in the companys balance sheet there
shall be stated
(a) the aggregate amount of any debts included under that item in
respect of which any security has been given, and
(b) an indication of the nature of the securities so given.
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PART V
Materiality
37. In this Schedule, material means the status of information where its
omission or misstatement could reasonably be expected to influence
decisions that users make on the basis of the financial statements of
the undertaking. The materiality of individual items shall be assessed
in the context of other similar items.
Value adjustments
38. (1) References in this Schedule to value adjustments for depreciation
or diminution in value of assets are references to any amount
written off by way of providing for depreciation or diminution in
value of assets.
(2) Any reference in the profit and loss account format set out in Part
II to amounts written off assets is a reference to the movement in
any value adjustment for depreciation or diminution in value of
assets of that description.
Provisions
39. References in this Schedule to provisions are references to any amount
retained as reasonably necessary for the purpose of providing for any
liability the nature of which is clearly defined and which exists at the
financial year end date but, as respects the amount of which or the date
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Purchase price
40. References in this Schedule (however expressed) to the purchase price
of an asset of a company or of any raw materials or consumables used
in the production of any such asset shall be read as including
references to any consideration (whether in cash or otherwise) given
by the company in respect of that asset or in respect of those materials
or consumables (as the case may require)..
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SCHEDULE 4
SCHEDULE 4
ACCOUNTING PRINCIPLES, FORM AND CONTENT OF GROUP FINANCIAL STATEMENTS
PART I
PART II
GENERAL RULES
2. (1) Group financial statements shall comply, except for any necessary
modifications to take account of differences between group
financial statements and entity financial statements, with the
provisions of Schedule 3 as if the undertakings included in the
consolidation (the group) were a single company.
(2) In particular, for the purposes of paragraph 68 of Schedule 3 as it
applies to group financial statements
(a) any subsidiary undertakings of the holding company not dealt
with in the group financial statements shall be treated as a
subsidiary undertaking of the group, and
(b) if the holding company is itself a subsidiary undertaking, the
group shall be treated as a subsidiary undertaking of any
holding undertaking of the holding company, and the
reference to fellow subsidiary undertakings shall be read
accordingly.
3. (1) The group balance sheet and group profit and loss account shall
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Other changes
6. (1) The formats set out in Part II of Schedule 3 shall have effect in
relation to group financial statements with the following
modifications.
(2) In the Balance Sheet Formats, the items headed Participating
interests, that is
(a) in Format 1, item A.III.3, and
(b) in Format 2, item A.III.3 under the heading ASSETS,
shall be replaced by 2 items, Interests in associated undertakings
and Other participating interests.
(3) In the Profit and Loss Account Formats, the items headed Income
from participating interests, that is
(a) in Format 1, item 8, and
(b) in Format 2, item 10,
shall be replaced by 2 items, Income from interests in associated
undertakings and Income from other participating interests.
PART III
ACCOUNTING PRINCIPLES
General
7. In determining the amounts to be included in the group financial
statements, the accounting principles and valuation rules contained in
Part III of Schedule 3 shall apply and shall be applied consistently
within those group financial statements.
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(2) In particular
(a) debts and claims between the undertakings included in the
consolidation shall be eliminated in preparing the group
financial statements,
(b) income and expenditure relating to transactions between the
undertakings included in the consolidation shall be eliminated
in preparing the group financial statements, and
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(b) the fair value of any other consideration for the acquisition of
shares in the acquired undertaking, determined as at the date
when those shares were acquired,
the nominal value of the issued share capital of the acquired
undertaking held by the undertakings consolidated in the group
financial statements.
(6) The resulting amount shall be shown as an adjustment to the
consolidated reserves.
(7) In subparagraph (5)(a), the appropriate amount in respect of the
shares issued shall be determined in accordance with the
requirements of sections 71 to 75.
17. Where an acquisition has taken place in the financial year and the
merger method of accounting has been adopted, the notes to the
financial statements shall disclose
(a) the address of the acquired undertakings registered office or
where the acquired undertaking is incorporated outside the
State, the registered office (howsoever described) of the
acquired undertaking in the country in which it is
incorporated,
(b) the name of the ultimate controlling party referred to in
paragraph 15(a),
(c) the address of that controlling partys registered office or
where the controlling party is incorporated outside the State,
the registered office (howsoever described) of the controlling
party in the country in which it is incorporated, and
(d) the information referred to in paragraph 16(6).
18. (1) Where a group is acquired, paragraphs 12 to 17 apply with the
following adaptations.
(2) References to shares of the acquired undertaking shall be read as
references to shares of the holding undertaking of the group
acquired.
(3) Other references to the acquired undertaking shall be read as
references to the group acquired; and references to the assets and
liabilities, income and expenditure and capital and reserves of the
acquired undertaking shall be read as references to the assets and
liabilities, income and expenditure and capital and reserves of the
group after making the set offs and other adjustments required by
this Part in the case of group financial statements.
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Associated undertakings
21. (1) In paragraph 22, associated undertaking means an undertaking in
which an undertaking consolidated in the group financial
statements has a participating interest and over whose operating
and financial policy it exercises a significant influence and which
is not
(a) a subsidiary undertaking of the holding company, or
(b) a joint venture proportionally consolidated in accordance
with paragraph 20.
(2) Where an undertaking holds 20 per cent or more of the voting
rights in another undertaking, it shall be presumed to exercise
such an influence over it unless the contrary is shown.
(3) The voting rights in an undertaking means the rights conferred on
shareholders in respect of their shares or, in the case of an
undertaking not having a share capital, on members, to vote at
general meetings of the undertaking on all or substantially all
matters.
(4) The provisions of section 7(5) and (6) with respect to determining
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Participating interest
23. (1) Subject to subparagraph (5), in paragraph 21 and this paragraph,
participating interest means an interest held by one undertaking
in the equity shares of another undertaking which it holds on a
long term basis for the purpose of securing a contribution to that
undertakings own activities by the exercise of control or
influence arising from or related to that interest.
(2) The reference in subparagraph (1) to an interest in equity shares
includes
(a) an interest which is convertible into an interest in equity
shares, and
(b) an option to acquire equity shares or any such interest,
and an interest or option falls within clause (a) or (b)
notwithstanding that the equity shares to which it relates are, until
the conversion or the exercise of the option, unissued.
(3) Where an undertaking holds an interest in equity shares and such
an interest represents 20 per cent or more of all such interests in
the other undertaking it shall be presumed to hold that interest on
the basis and for the purpose mentioned in subparagraph (1)
unless the contrary is shown.
(4) For the purpose of this paragraph an interest held on behalf of an
undertaking shall be treated as held by it.
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(5) In the balance sheet and profit and loss formats set out in Part II of
Schedule 3, participating interest does not include an interest in
a group undertaking.
PART IV
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PART V
MISCELLANEOUS MATTERS
Deferred tax
32. Deferred tax balances shall be recognised on consolidation where it is
probable that a charge to tax or a reduction in tax payable will arise
within the foreseeable future for one of the undertakings included in
the consolidation..
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SCHEDULE 5
SCHEDULE 4A
ACCOUNTING PRINCIPLES, FORM AND CONTENT OF GROUP FINANCIAL STATEMENTS FOR
COMPANIES SUBJECT TO THE SMALL COMPANIES REGIME
PART I
PART II
GENERAL RULES
2. (1) Group financial statements shall comply, except for any necessary
modifications to take account of differences between group
financial statements and entity financial statements, with the
provisions of Schedule 3A as if the undertakings included in the
consolidation (the group) were a single company.
(2) In particular, for the purposes of paragraph 57 of Schedule 3A as
it applies to group financial statements
(a) any subsidiary undertakings of the holding company not dealt
with in the group financial statements shall be treated as a
subsidiary undertaking of the group, and
(b) if the holding company is itself a subsidiary undertaking, the
group shall be treated as a subsidiary undertaking of any
holding undertaking of the holding company, and the
reference to fellow subsidiary undertakings shall be read
accordingly.
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3. (1) The group balance sheet and group profit and loss account shall
consolidate in full the information contained in the separate
balance sheets and profit and loss accounts of the holding
company and of the subsidiary undertakings included in the
consolidation, subject to the adjustments required or permitted by
the following provisions of this Schedule and to such other
adjustments (if any) as may be appropriate in accordance with
generally accepted accounting practice.
(2) If the financial year of a subsidiary undertaking dealt with in the
group financial statements differs from that of the holding
company, the group financial statements shall be drawn up
(a) from the entity financial statements of the subsidiary
undertaking for its financial year last ending before the end of
the holding companys financial year provided that the
financial year ended no more than 3 months before that of the
holding undertaking and subparagraph (3) is complied with,
or
(b) from interim financial statements drawn up by the subsidiary
undertaking as at the end of the holding companys financial
year.
(3) Where the group financial statements are drawn up from entity
financial statements of a subsidiary undertaking referred to in
subparagraph (2)(a), account shall be taken and, where
appropriate, disclosure shall be made of important events
concerning the assets and liabilities, the financial position and the
profit or loss of the subsidiary undertaking between the subsidiary
undertakings financial year end date and that of the holding
company.
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subsidiary undertakings.
5. (1) In applying Profit and Loss Account Formats 1 and 2 set out in
Part II of Schedule 3A to group financial statements the profit or
loss for the year shown
(a) in Format 1, item 16, and
(b) in Format 2, item 18,
shall be attributed between amounts due to Non-controlling
Interests and equity holders of the holding company.
(2) The amount to be shown under the heading Non-controlling
Interests in accordance with subparagraph (1) shall be the amount
of any profit or loss for the year attributable to shares in
subsidiary undertakings consolidated in the group financial
statements held by or on behalf of persons other than the holding
company and its subsidiary undertakings.
Other changes
6. (1) The formats set out in Part II of Schedule 3A shall have effect in
relation to group financial statements with the following
modifications.
(2) In the Balance Sheet Formats, the items headed Participating
interests, that is
(a) in Format 1, item A.III.3, and
(b) in Format 2, item A.III.3 under the heading ASSETS,
shall be replaced by 2 items, Interests in associated undertakings
and Other participating interests.
(3) In the Profit and Loss Account Formats, the items headed Income
from participating interests, that is
(a) in Format 1, item 8, and
(b) in Format 2, item 10,
shall be replaced by 2 items, Income from interests in associated
undertakings and Income from other participating interests.
PART III
ACCOUNTING PRINCIPLES
General
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Associated undertakings
21. (1) In paragraph 22, associated undertaking means an undertaking in
which an undertaking consolidated in the group financial
statements has a participating interest and over whose operating
and financial policy it exercises a significant influence and which
is not
(a) a subsidiary undertaking of the holding company, or
(b) a joint venture proportionally consolidated in accordance
with paragraph 20.
(2) Where an undertaking holds 20 per cent or more of the voting
rights in another undertaking, it shall be presumed to exercise
such an influence over it unless the contrary is shown.
(3) The voting rights in an undertaking means the rights conferred on
shareholders in respect of their shares or, in the case of an
undertaking not having a share capital, on members, to vote at
general meetings of the undertaking on all or substantially all
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matters.
(4) The provisions of section 7(5) and (6) with respect to determining
whether shares are held in a body corporate and with respect to
reckoning the amount of voting rights held apply, with any
necessary modifications, in determining for the purpose of this
paragraph whether an undertaking holds 20 per cent or more of
the voting rights in another undertaking.
22. (1) The interest of an undertaking consolidated in the group financial
statements in an associated undertaking, and the amount of profit
or loss attributable to such an interest, shall be shown in the group
financial statements by way of the equity method of accounting
including dealing with any goodwill arising in accordance with
paragraphs 21 to 23, and 25 of Schedule 3A.
(2) Where the associated undertaking is itself a holding undertaking,
the net assets and profits or losses to be taken into account are
those of the holding undertaking and its subsidiary undertakings
(after making any consolidation adjustments).
(3) The equity method of accounting need not be applied if the
amounts in question are not material for the purpose of giving a
true and fair view.
Participating interest
23. (1) Subject to subparagraph (5), in paragraph 21 and this paragraph
participating interest means an interest held by one undertaking
in the equity shares of another undertaking which it holds on a
long term basis for the purpose of securing a contribution to that
undertakings own activities by the exercise of control or
influence arising from or related to that interest.
(2) The reference in subparagraph (1) to an interest in equity shares
includes
(a) an interest which is convertible into an interest in equity
shares, and
(b) an option to acquire equity shares or any such interest,
and an interest or option falls within clause (a) or (b)
notwithstanding that the equity shares to which it relates are, until
the conversion or the exercise of the option, unissued.
(3) Where an undertaking holds an interest in equity shares and such
an interest represents 20 per cent or more of all such interests in
the other undertaking it shall be presumed to hold that interest on
the basis and for the purpose mentioned in subparagraph (1)
unless the contrary is shown.
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PART IV
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PART V
MISCELLANEOUS MATTERS
Deferred tax
32. Deferred tax balances shall be recognised on consolidation where it is
probable that a charge to tax or a reduction in tax payable will arise
within the foreseeable future for one of the undertakings included in
the consolidation..
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SCHEDULE 6
SCHEDULE 18
TABLE OF ACTIVITIES RELEVANT TO THE DEFINITIONS OF LOGGING UNDERTAKING AND MINING
OR QUARRYING UNDERTAKING IN SECTION 1449
Table 2
Section B - Mining and Quarrying
Division Group Class Description International
Standard Industrial
Classification
Revision 4
05 Mining of coal and lignite
05.1 Mining of hard coal 0510
05.2 05.20 Mining of lignite 0520
06 Extraction of crude petroleum
and natural gas
06.1 06.10 Extraction of crude petroleum 0610
06.2 06.20 Extraction of natural gas 0620
07 Mining of metal ores
07.1 07.10 Mining of iron ores 0710
07.2 Mining of non-ferrous metal ores
07.21 Mining of uranium and thorium 0721
ores
07.29 Mining of other non-ferrous 0729
metal ores
08 Other mining and quarrying
08.1 Quarrying of stone, sand and
clay
08.11 Quarrying of ornamental and 0810 (part of)
building stone, limestone,
gypsum, chalk and slate
08.12 Operation of gravel and sand 0810 (part of)
pits; mining of clays and kaolin
08.9 Mining and quarrying not
elsewhere classified
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