Companies (Accounting) Act 2017

Amendment of section 290 of Principal Act

16. Section 290 of the Principal Act is amended—

(a) in subsection (6), by the substitution of “Subject to subsection (6A), after the first financial year” for “After the first financial year”,

(b) by the insertion of the following subsections after subsection (6):

“(6A) After a financial year in which the directors of a company prepare IFRS entity financial statements, the directors of the company may, notwithstanding that there is not a relevant change of circumstances as referred to in subsection (7), subsequently prepare Companies Act entity financial statements for the company provided they have not changed to preparing Companies Act entity financial statements in the period of 5 years preceding the first day of that financial year.

(6B) For the purposes of calculating the 5 year period referred to in subsection (6A), the reference to ‘changed to Companies Act entity financial statements’ shall not be read as including a reference to a change to using those financial statements which was due to a relevant change in circumstances.”,


(c) in subsection (8)—

(i) by the substitution of “in accordance with subsection (6A) or (7)” for “following a relevant change of circumstances”, and

(ii) by the substitution of “subsections (6), (6A) and (7)” for “subsections (6) and (7)”.