Reports on Abridged Financial Statements under the 2014 Act

Section 356(1) Companies Act 2014 requires a special report to accompany the abridged financial statements annexed to the annual report. 

Section 350 specifies the qualification of a company as small or medium company.  

Changes in thresholds

The Companies Act 2014 increases the thresholds at which companies are deemed to be medium-sized and become eligible to choose to file abridged financial statements. The criteria for small and medium are now:

Qualifying Conditions

Small

Medium

Amount of turnover

€8.8 million*

€20 million*

Balance sheet total (total assets)

€4.4 million

€10 million

Average number of employees

50

250

* Proportionately adjust where the financial year is not a year

The criteria for qualifying for small or medium are covered in more detail in section 9 of Technical Release 02/2015 which also includes details on what types of companies can avail of the relief and what elements of the financial statements a small company can be excluded.

 

Report from the statutory auditor

Formerly two reports were required under Section 18(3) and 18(4) of the Companies (Amendment) Act, 1986. The requirements have now been changed and one special report from the statutory auditor is required to accompany the abridged financial statements annexed to the annual return under section 356 Companies Act 2014.

The report states that in the opinion of the auditors:

  • The directors of the company are entitled to annex those abridged financial statements to the annual report, and
  • The abridged financial statements so annexed are properly so prepared. 
  • It is a Category 2 offence to publish it without the auditors signature.

Failure to comply with this requirement by the directors is a category 2 offence under the Companies Act 2014.

 

Further guidance

Download the Technical Releases, TR 03/2015 for more information on reporting on abridged financial statements. 

 

Example Report

An example of this report is contained in Appendix 3 to Technical Release 03/2015 and you can download this example report here. .

 

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