Companies Act 2017 – Impact on Consolidations and Abridged Accounts

The Companies (Accounting) Act 2017 was signed into law on 9 June 2017 and affects companies filing accounts for periods starting 1 January 2017.  The first wave of companies likely to be affected are companies with years ending 31 December 2017.

Consolidated Accounts

The 2017 Act has now introduced the requirement for holding companies to prepare consolidated financial statements at a lower threshold than was previously required.  While the preparation of consolidated financial statements is recommended to gain a financial understanding of a group as a whole, it will result in higher compliance costs for those companies that are now obliged to prepare and file consolidated financial statements.

The old and new thresholds are set out below. The amounts specified are the combined amounts of the holding company and its subsidiaries.

Companies must meet two out of three of the size criteria in relation to the current and previous financial years i.e. two consecutive years to lose or gain the status.

We are seeing these new limits now bring in Read more

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    Posted on October 17, 2017 by Paul Leonard

    The Purpose And Future Of Bank Confirmation Letters

    Why do auditors request bank confirmation letters? Are the bank statements not enough?

    The reasons why auditor request bank confirmation letters are as follows:

    1. To ensure that all bank accounts held by a company are included in the financial statements.
    2. To ensure all interest payable or receivable has been correctly accounting for in the financial statements
    3. To all security that may be held be the bank is correctly disclosed in the financial statements.

    The future of bank confirmation letters

    The preparation of bank confirmation letters has always been an onerous task for bankers, and in todays’ hi-tech environment, the expectation for speedy and accurate delivery has become higher.

    A number of firms has released software which may improve the efficiency of processing bank confirmation letters though online portals. Once the all banks have signed up and the integrity of the security can be validated, this may prove to be the future of bank confirmations.

    The Auditing Practices Board are currently reviewing the future of how bank confirmations will fit into auditing going forward and as such are looking to revise International Standard Auditing 505 (External Confirmations) in this regard.

    What questions do you have?

    We are happy to help. Please post your comment below or call Nigel Mayberry, Director of Audit Services at Cooney Carey, on 01 677 9000. Alternatively, send him an email: nmayberry@cooneycarey.ie

    To keep in touch, connect with our friendly team on LinkedIn.

    If you found this article interesting, please share it with other businesses. 

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      Posted on October 10, 2017 by Nigel Mayberry

      What is the Local Infrastructure Housing Activation Fund (“LIHAF”)?

      The Local Infrastructure Housing Activation Fund (LIHAF) is part of the Rebuilding Ireland Programme. Announced last July and approved on the 28th March 2017. The fund totals €226 million and will be used to improve Ireland’s strategic infrastructure and increase the number of houses. It is hoped the fund will lead to the development of 23,000 new homes by 2021.

      Purpose of the Fund

      The objective of the fund is to provide the public with modern infrastructure to relieve current critical infrastructure blockages, thereby accelerating the delivery of houses in key urban areas currently experiencing housing shortages.

      Local public infrastructure such as access roads and public services had been previously being paid for by local authorities from revenues received from local development projects. These costs were in turn passed on to the purchase price of the property. The serious decline in housing development since 2008 meant that local authorities no longer have the resources to fund the provision of local public infrastructure. Leading to a serious deterioration in local public infrastructure.

      How Many Proposals Have Been Approved and what is the Cost

      Over 34 proposals have been granted across 15 local authorities. The total cost of the project is €226.46 million of which €169.65 million is to be funded by the exchequer, and the remaining balance of €56.81 million will be funded by local authorities. Half of the funding will be provided to Dublin, a total of €113 million and its 4 local authorities. Cherrywood alone is expected to receive €15.9 million in funding for 8,000 planned new homes. Cork city and county councils will be receiving €46 million, with the remaining €67million to be divided among the rest of the country

      How Many Additional Housing Units will be Provided

      The fund has the potential to deliver 23,000 houses across the country by 2021. These houses are to be apportioned nationwide as follows:

      1. Dublin Area – 14,000 additional units will hope to be provided by 2021.
      2. Cork Area – 3,000 additional units will hope to be provided by 2021.
      3. Rest of the Country – 6,000 additional units will hope to be provided by 2021.

      For more information please visit http://rebuildingireland.ie/news/local-infrastructure-housing-activation-fund-announced/

      What questions do you have?

      We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

      To keep in touch, connect with our friendly team on LinkedIn.

      If you found this article interesting, please share it with other businesses. 

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        Posted on October 4, 2017 by Jack Gahan

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