Companies (Accounting) Act 2017

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Amendment of section 275 of Principal Act

12. Section 275 of the Principal Act is amended—

(a) in subsection (1)—

(i) by the insertion of “and Part 26” after “In this Part”,

(ii) by the insertion of the following definitions:

“ ‘Accounting Directive’ means Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013² on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC;

‘amount of turnover’, in relation to a company, means the amount of the turnover shown in the company’s profit and loss account;

‘balance sheet total’, in relation to a company, means the aggregate of the amounts shown as assets in the company’s balance sheet;

‘ineligible entities’ means undertakings that—

(a) have transferable securities admitted to trading on a regulated market of any Member State,

(b) are credit institutions,

(c) are insurance undertakings, or

(d) are—

(i) undertakings that—

(I) fall within any of the provisions of Schedule 5, or

(II) are otherwise designated, by or under any other enactment, to be entities referred to in point (1)(d) of Article 2 of the Accounting Directive,

or

(ii) undertakings that are designated, by or under the law of any other Member State, to be entities referred to in point (1)(d) of Article 2 of the Accounting Directive and ‘ineligible company’ shall be read accordingly;

‘large company’ shall be read in accordance with section 280H;

‘medium company’ shall be read in accordance with section 280F or 280G, as may be appropriate; and ‘medium group’ shall be read accordingly;

‘micro company’ shall be construed in accordance with section 280D;

‘micro companies regime’ has the meaning assigned to it by section 280E;

‘small company’ shall be read in accordance with section 280A or 280B, as may be appropriate; and ‘small group’ shall be read accordingly;

‘small companies regime’ has the meaning assigned to it by section 280C;”,

and

(iii) in the definition of “credit institution”—

(I) in paragraph (b), by the substitution of “(within the meaning of the Consumer Credit Act 1995 )” for “(within the meaning of the Hire Purchase Act 1946 )”, and

(II) in paragraph (c), by the substitution of “or other repayable funds from the public and” for “or other repayable funds or”,

(b) by the substitution of the following subsection for subsection (5):

“(5) A word or expression that is used in this Part, Part 26 or in Schedules 3, 3A, 3B, 4 or 4A and that is also used in the Accounting Directive shall have the same meaning in this Part, Part 26 or in those Schedules, as the case may be, as it has in the Accounting Directive.”,

and

(c) by the deletion of subsection (6).

² OJ No. L 182, 29.06.2013, p.19.