Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

I move amendment No. 5:

In page 12, lines 6 and 7, to delete “means an income statement” and substitute “means a statement of profit or loss and other comprehensive income or equivalent term”.

This is a technical amendment. Section 12 amends the definition of a "profit and loss account" that is currently in the Companies Act 2014. The change in section 12 is needed to take account of the fact that some companies such as charities do not make profits. Therefore, they do not prepare a profit and loss account. Section 12 reflects that fact and refers to an "income and expenditure account" instead.

Amendment No. 5 also addresses a further issue with the definition. The phrase "income statement" is used in both the Companies Act and in section 12 of this Bill. However, the relevant international accounting standard, IAS, does not use this term. Instead it uses a statement of profit and loss and other comprehensive income or equivalent term. Amendment No. 5 replaces the current text with the language from the relevant IAS, for clarity and consistency.