Certain provisions of the Companies (Auditing and Accounting) Act 2003 commenced

This legislation was enacted on 23rd December 2003. Certain provisions of the Act have been commenced by S.I. 132 of 2004. Company directors and officers should be aware of the following key developments:-

Change in Audit Exemption Threshold

• The audit exemption threshold is increased from €317,434.51 to €1,500,000.00 effective from 1st July next.
• The new threshold applies as and from 1st July in relation to a company whose financial year begins on or after that date.
• In addition to the existing audit eligibility conditions, there is a requirement that companies who wish to avail of the exemption must file the annual return with the unaudited accounts on time and must have filed the annual return on time in respect of the previous financial year also.

New Annual Return Date Regulations

• Under existing rules, filing an annual return made up to a date which is more than 14 days before the annual return date (ARD) automatically moves the next ARD to the anniversary of the earlier date.
• With effect from 17th May 2004, the ARD in such circumstances shall be the anniversary of the earlier date unless the company in question elects to retain its existing ARD or establishes a new ARD by extending the date using a Form B73.
• A new Form B1 (Annual Return) is available from the CRO website to facilitate the company secretary in electing to retain the existing ARD for the following year, notwithstanding that the company has made its return in the current year up to a date before its ARD.

Obligation to attach Auditors Report to Annual Return

With effect from 17th May 2004, the auditors of the following companies are required to prepare a separate report to the directors which confirms that the auditors have audited the accounts for the relevant year and a copy of the report is required to be certified by a director and by the company secretary to be a true copy of same and attached to the annual return:-

• a private unlimited company;
• a private company not trading for the acquisition of gain by the members;
• a company not having a share capital which is formed for an object that is charitable and is under the control of a religion recognized by the State under Article 44 of the Constitution; or
• a company which is exempted from the requirement to file accounts by order of the Commissioners for Charitable Bequests and Donations, being a company formed for charitable purposes not having a share capital.

For further information contact:
Joanne Griffin at
Email : jgriffin@kilroys.ie

© Kilroys Solicitors January 2004