Good news for very small companies – Jobs Minister Mary Mitchell O’Connor has today announced that new simplified accounts rules for “micro companies” will come into effect on this Friday.
The purpose of the new rules is to simplify “micro company” accounts and to help them avoid many of the more awkward company law reporting requirements that apply to companies generally.
They reflect the FRS105 accounting standard which was introduced in 2015 to implement the EU 2013 Accounting Directive on micro entities.
“Micro companies” are small companies that meet 2 or more of the following conditions:
- annual turnover is €700,000 or lower.
- the balance sheet total is €350,000 or lower.
- the average number of employees is 10 or lower.
Certain types of financial services and other specialist companies are excluded.
It’s great to see the authorities at last making a small gesture to help micro companies.