The Companies Act 2014 Ireland

Key Contact: Ruairí Mulrean Telephone: +353 1 638 5844 Email: rmulrean@lkshields.ie

Revision of Defective Financial Statements


Under the Companies Acts 1963 - 2013 there is currently no facility for rectifying statutory financial statements where an error is discovered following filing in the Companies Registration Office. The Companies Act 2014 introduces new provisions allowing the voluntary revision of financial statements.  These new provisions mirror the current position in the UK.

The new regime will allow directors of a company to prepare revised financial statements and/or a revised directors’ report.  Where the amounts and presentation of the profit and loss account, balance sheet or other statements are not affected by the revision, the revision of financial statements may be done by way of a supplementary note.  In all other cases, revised financial statements must be filed.

The requirements attaching to the original financial statements apply similarly to any revised financial statements, for example:

  • if the auditors of a company made a report on the original financial statements/directors’ report, they must issue a report on the revised filings;
  • where the original statements have been approved by the members of a company at a general meeting, members’ approval of the revised statements must be sought at the next general meeting of the company held after the date of the revision; and
  • once the revised financial statements have been approved, they must be delivered to the CRO and to any person entitled to receive the financial statements within 28 days of the date of the revision.

This change is a welcome development.  The Companies Act 2014 is intended to make it easier and cheaper to operate a company in Ireland.  Practical changes such as this are an example of that aim being put into practice. 

Author:

Ruairi Mulrean is a partner in the Corporate and Commercial Department at LK Shields Solicitors. Ruairi specialises in Corporate Law and is the key contact for the Companies Act at LK Shields.

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