Michael McGrath (Cork South Central, Fianna Fail)
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636. To ask the Minister for Jobs, Enterprise and Innovation her plans with regard to the Companies (Accounting) Bill 2016 to delay the entire amendment of section 1274 of the Companies Act 2014 until 2022; if only the amendment to subsection (2)(a)(iii) will be delayed until 2022; and if she will make a statement on the matter. [24000/17]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The Companies (Accounting) Bill 2016 was signed into law by the President on 17 May 2017.

Section 78(1) of the Companies (Accounting) Act 2017 replaces and amends section 1274 of the Companies Act 2014. It provides that an unlimited company (an ULC) is not obliged to file financial statements with its annual return, while a designated unlimited company (a ‘designated ULC’) is obliged to file financial statements with its annual return.

Section 1274(2) defines a ‘designated ULC’ in a number of ways. One of those definitions is contained in section 1274(2)(a)(iii). That subsection provides that a designated ULC is an ULC that at any time during the relevant financial year has been a holding company of an undertaking which was at that time limited.

As the Companies (Accounting) Act 2017 was being enacted, the Oireachtas made an amendment to provide that this particular type of designated ULC will not have to file financial statements in respect of financial years that begin before 1 January 2022. The Oireachtas did not extend the application of this amendment to any other type of designated ULC.

The Companies (Accounting) Act 2017 transposes the EU Accounting Directive (Directive 2013/34/EU) into Irish law. That Directive applies its provisions to certain types of unlimited companies, and this aspect is transposed in section 1274 of the Act. Transposition of that Directive was due by 20 July 2015, so it is overdue.

For these reasons, most types of designated ULC, as defined in section 1274, will be required to file financial statements after the commencement of the Companies (Accounting) Act 2017.

It is my intention to commence that Act as soon as possible and to apply it to financial statements with respect to financial years beginning on or after 1 January 2017.