Accounts Exemptions

The Companies Act 2017 introduced varying financial reporting regimes, categorising companies into small, medium, and large entities. These changes, influenced by the EU Accounting Directive, aimed to streamline financial reporting standards while reducing compliance costs for smaller companies. Schedule 3 outlines principles for medium and large entities, while Schedule 3A and 3B detail requirements for small and micro companies, respectively.

Micro-sized companies meeting specific criteria may be exempted from full financial statement requirements, but this exemption doesn’t apply to certain types of companies in the financial services sector. Small and medium companies also have exemptions based on turnover, balance sheet total, and employee count.

Abridged financial statements, with reduced disclosure requirements, are permissible for small and medium companies, subject to certain conditions and approvals. Special auditor reports accompany abridged financial statements, confirming compliance with relevant legislation.

Furthermore, guaranteed EEA subsidiaries may be exempted from certain document annexation requirements, provided certain conditions are met, including notification to shareholders and adherence to EU Directive standards. Translation and certification requirements apply to documents not in English or Irish.

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