The Companies (Accounting) Act 2017 came into force on 09/06/17 and, it will reduce the financial reporting obligations on small businesses. One of the more significant changes in the act is the creation of a new category of company called a micro company.

 

Balance sheet total not exceeding: €350,000
Turnover not exceeding: €700,000
Employees not exceeding: 10

The accounting benefits of being a micro company include exemptions from disclosing directors remuneration and no obligation to prepare or file a directors report.

Small and micro companies will be permitted to file abridged financial statements under the act. Small companies are defined as those with a turnover not exceeding €12 million (up from €8.8 million), a balance sheet not exceeding €6 million (up from €4.4 million) and average number of employees not exceeding 50.

Certain confirmations on the Accounts are required to avail of these new disclosure requirements

The exemption applies to financial years beginning 1st January 2015. (section 277a Companies Act 2014 as inserted by section 14 Companies (Accounting) Act 2017.

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