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

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. 

Posted on October 10, 2017 by Nigel Mayberry

iXBRL deadlines 2017

The Revenue Commissioners have maintained the deadline of filing iXBRL tagged accounts within three months of the deadline for filing the corporation tax return for those companies that are required to do so in 2017.

If any refunds are due, these will be withheld by the Revenue Commissioners until after the iXBRL tagged accounts have been filed.

Late filing of iXBRL tagged accounts with the Revenue Commissioners may lead to;

  1. A surcharge on top of your tax charge
  2. Restriction of group loss relief which may be available

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. 

Posted on September 21, 2017 by Nigel Mayberry

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