Companies (Accounting) Act 2017

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Amendment of section 300 of Principal Act

23. Section 300 of the Principal Act is amended—

(a) in subsection (2)—

(i) by the insertion of the following paragraph after paragraph (a):

“(aa) that other holding undertaking holds more than 90 per cent of the shares in the lower holding company and the remaining shareholders in, or members of, the lower holding company have approved the exemption,”,

and

(ii) in paragraph (b), by the substitution of “more than 50 per cent but not more than 90 per cent” for “more than 50 per cent”,

(b) in subsection (4)—

(i) by the substitution of the following paragraph for paragraph (b):

“(b) those accounts and, where appropriate, the group’s consolidated annual report are drawn up—

(i) in accordance with the Accounting Directive,

(ii) in a manner equivalent to consolidated accounts and consolidated reports so drawn up,

(iii) in accordance with international financial reporting standards, or

(iv) in accordance with accounting standards of third countries determined as equivalent to international financial reporting standards pursuant to Commission Regulation (EC) No. 1569/2007 of 21 December 2007³ establishing a mechanism for the determination of equivalence of accounting standards applied by third country issuers of securities pursuant to Directives 2003/71/EC and 2004/109/EC of the European Parliament and of the Council;”,

(ii) in paragraph (d), by the substitution of “discloses in the notes to its entity financial statements” for “discloses in its entity financial statements”,

(iii) in paragraph (e), by the substitution of the following subparagraph for subparagraph (i):

“(i) the address of the holding undertaking’s registered office and, where the holding undertaking is incorporated outside the State, the registered office (howsoever described) of the undertaking in the country in which it is incorporated, or”,

(c) in subsection (6), by the substitution of “For the purposes of paragraphs (aa) and (b) of subsection (2)” for “For the purposes of paragraph (b) of subsection (2)”, and

(d) by the substitution of the following subsection for subsection (7):

“(7) In this section, ‘consolidated annual report’ means—

(a) the report prepared by management of the group in accordance with the Accounting Directive, or

(b) the report prepared by management of the group in a manner equivalent to consolidated reports referred to in subsection (4)(b) (ii),

and, in either case, is equivalent to the expression ‘directors’ report’ as used in this Part.”.

³ OJ No. L340, 22.12.2007, p.66.