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What changes have been made to financial periods under the Companies Act 2014?

The Companies Act 2014 has introduced a number of changes to annual compliance requirements which essentially provides flexibility for companies by introducing ways to alter their Annual Return Date and Financial Year End (FYE).

Change of Annual Return Date

A company that wishes to change their ARD may do so by one of three ways.

  •  A Company may file their annual return early and state on the Form b1 to change its ARD to the date that the B1 is made up to.
  •  Once in every 5 years, a company may extend its ARD by up to six months. This is done by submitting a Form B1 and a Form B73 within 28 days of the company’s existing ARD.
  •  If a company is a member of a group, it can align its ARD with its holding company or other subsidiaries.

Change of Financial Year End

Under the new Act, a company’s Financial Year End must not exceed 18 months for their first financial year and then 12 months for the following financial years. However, there is an option under section 288(4) of the Act, for a company to alter its FYE. This can only be done if the new financial year does not 18 months and can only be altered once every five years.

Filing two annual returns with the same set of accounts

A company is no longer permitted to file two annual return with the same set of accounts. Since the introduction of the Act, each set of financial statements must now start on the first day after the period covered by the last set of financial statements filed with the Companies Registration Office. Prior to the commencement of the Act, companies were permitted to alter their ARD up to nine months from the FYE by filing the same set of financial statements twice in the same year.

For more information on the above or for assistance with your company’s annual compliance requirements, please do not hesitate to contact us on +3531 646 16 26 or email us at cosec@companybureau.ie.

Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.

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