We’ve been waiting for close on 15 years for the new Companies Act 2014 and no sooner than its commenced into law on Monday, 1st June 2015 that we will have yet again another new Companies Act, the proposed new Companies (Accounting) Act 2015, which may increase the audit exemption threshold in the case of the balance sheet total to €6 million and €12 million for net turnover ?
Why don’t we know more?
The fine detail and the exact figures for the new exemption thresholds are currently on the desk of the Minister for Jobs, Enterprise and Innovation and hopefully he will show his hand over the next few weeks as this important new legislation is required to be in place by July 2015 in accordance with the 2013 EU Directive.
Small companies have certainly got a lot bigger overnight and these new thresholds, if introduced at the high end of the EU recommendation will remove large numbers of companies from the audit requirement if they so elect to claim audit exemption under the new Companies Act 2014.
Sadly thereafter, the new Companies Act 2014 will no more be the single companies act that it was supposed to be for much longer. The new citation from July 2015 onwards is likely to be the Companies Acts 2014 to 2015!
With another big EU Directive in the pipeline that citation is almost guaranteed to change yet again next year with the advent of the new Companies (Auditing ) Bill 2015 that will create the new citation for the Companies Acts 2014 to 2016 and practitioners having to deal with three different companies acts in 2016!
It’s also very probable that issues will arise with regard to the practicalities of the new Companies Act 2014 and we can probably expect some possible amending legislation in 2017 also?