Voluntary Revision of Defective Statutory Financial Statements

The Companies Act 2014 introduces a new procedure which provides a mechanism for companies to voluntarily correct defective financial statements where they have been laid before the company in general meeting or submitted to the Companies Registration Office (CRO). Under section 366 companies will be able to rectify financial statements either by filing a supplementary note, a revised directors’ report or by filing revised financial statements. 

 

Technical Release

Chartered Accountants Ireland has produced a series of Technical Releases to assist members - for more information on the procedures and reports required see section 4 of Technical Release 05/2015  

 

These revised financial statements or directors’ report becomes the company’s statutory financial statements or directors’ report. 

Where the original financial statements were audited or the revision means a loss of audit exemption, the auditor will prepare a revised auditor's report (section 391), and a report under section 370.  If the company’s original financial statements were audit exempt and the revision does not change this, an auditor’s report is not needed.

Where the amounts and presentation of the profit and loss account, balance sheet or other statements are not affected by the revision, the revision of financial statements may be done by way of a supplementary note. In other circumstances revised financial statements must be filed.  A supplementary note might be used where there is an omission from the directors’ report or the notes to the financial statements. 

Where the original financial statements were audited and only the directors’ report is revised, the auditor will prepare a report  under section 372. This report will give the auditor’s opinion on whether the information given in the revised report is consistent with the original statutory financial statements.

 

The Companies Registration Office website contains useful information.

 

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