Since the implementation of the new Companies Act, 2014 on 1 June 2015, the financial statements of regulated insurance intermediaries and investment brokers will no longer qualify for certain exemptions.
Those affected are those carrying on business under the Insurance Act, 1989 or otherwise authorised by the Central Bank. The full list of entities affected is on the 5th Schedule of the Companies Act, 2014
This applies to financial statements approved by the directors on/after 1 June 2015 and means they:
1. Are not allowed to qualify for the ‘small’ or ‘medium’ thresholds as defined in company law;
2. Cannot abridge their financial statements. They must file full accounts with the CRO;
3. Cannot avail of audit exemption;
4. Cannot avail of the FRSSE (the Financial Reporting Standard for Smaller Entities (January 2015);
5. Must apply FRS 102 in full with effect from financial years commencing on/after 1 January 2015 (including a compulsory cash flow statement);
6. Must disclose auditor remuneration in the four categories required by section 322 of the Companies Act, 2014 (along with comparatives);
7. Cannot use FRS 105, the proposed micro-entities standard, when it is endorsed in Irish company law (expected to be signed off later this year);
8. Will not be allowed adopt section 1A of FRS 102 even after it has been endorsed in Irish company law (expected to be signed off later this year for certain other entities).
9. Will not be allowed use the PASE (Provisions Available for Smaller Entities) as the entity is deemed to be large.
To hear more about financial reporting developments in FRS 102 and in FRS 102 for Charities (and other Not for Profit Entities) including the Charities SORP please come to our upcoming training days in Dublin and Cork. See our CPD courses page for the latest news.