New legislation to assist companies with audit and reporting requirements.
Medium-sized firms are set to benefit from more relaxed reporting requirements and audit exemptions.
The Irish Government has signed into law new legislation that increases the balance sheet and turnover thresholds for ‘micro’, ‘small’, ‘medium’ and ‘large’ companies in the Companies Act 2014 by 25%.
“We have moved as quickly as possible to give effect to these new rules, to maximise the benefit of the reduction in reporting obligations and cost burden to companies”
This change in size will mean that more companies will move into the micro and small categories and will thus benefit through abridged reporting requirements and the audit exemption.
Balancing the books
Minister for Enterprise, Trade and Employment, Peter Burke, TD, has signed into law the European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024.
“We have moved as quickly as possible to give effect to these new rules, to maximise the benefit of the reduction in reporting obligations and cost burden to companies, and to make a real difference in easing the cost of doing business, especially for our small companies, in key sectors, across the country,” said Minister Burke.
The Regulations will take effect from 1 July 2024 and the new thresholds will apply for financial years commencing 1 January 2024, with companies also having the option to apply them from 1 January 2023.
“These new regulations are consistent with the Government’s intention to reduce the administrative and regulatory burden on Irish enterprise, and I am pleased to note that the highest benefits will be to small companies who are the lifeblood of our local economies across the regions,” added Minister of State for Trade Promotion, Digital and Company Regulation Dara Calleary, TD.
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