Companies (Accounting) Act 2017 comes into force

On 9 June 2017 the concept of a ‘micro-entity’ was introduced into Irish law for the first time.

A micro-entity is one which does not exceed two of the following criteria for two consecutive years, or for the current year if it is newly incorporated:

Turnover (prorated if less or more than one year)	€700k
Balance sheet total i.e. total assets	€350k
Average number of employees	10

If your company qualifies as a micro-entity it can now use new rules (known as FRS 105), which allow a reduced amount of information to be disclosed in your annual accounts. For example, directors’ salary does not have to be disclosed.

While this may seem very attractive at first there are some down sides to preparing your accounts in line with these new rules. It is worth considering that third party institutions such as banks and suppliers may require more detailed information in your accounts if you are looking for credit.

You should discuss with your local TaxAssist Accountant whether you qualify as a micro-entity or not and, if so, whether FRS 105 is the most beneficial method of preparing the accounts of your company.

Date published 26 Jun 2017

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.