Companies Act 2014

1609. F1224[Appointment of statutory auditor for purposes of carrying out assurance of sustainability reporting

1609. (1) An applicable company that is subject to the requirements of section 1590 or 1596 shall appoint one or more statutory auditors for each financial year of the company for the purpose of carrying out the assurance of sustainability reporting of the company.

• (2) A statutory auditor appointed pursuant to subsection (1) may be a statutory auditor other than the statutory auditors appointed to carry out a statutory audit of the company.

• (3) Chapter 18 of Part 6 shall apply to the appointment of statutory auditors for the purpose of carrying out the assurance of sustainability reporting in the same manner as it applies to the appointment of statutory auditors for the purpose of carrying out a statutory audit subject to the following modifications:

• (a) references (howsoever expressed) to carrying out a statutory audit shall be construed as a reference to carrying out the assurance of sustainability reporting;

• (b) any other necessary modifications.]

1610. F1225[Assurance standards to be applied

1610. (1) Statutory auditors and statutory audit firms shall carry out the assurance of sustainability reporting in accordance with the assurance standards adopted by the Commission in accordance with paragraph (3) of Article 26a of the Audit Directive.

• (2) Subject to subsection (3), the Supervisory Authority may adopt assurance standards, procedures or requirements to be applied to the assurance of sustainability reporting, as long as the Commission has not adopted an assurance standard covering the same subject matter, and where assurance standards, procedures or requirements are so prescribed, statutory auditors and statutory audit firms shall carry out the assurance of sustainability reporting in accordance with those standards.

• (3) The Supervisory Authority shall communicate the assurance standards, procedures or requirements referred to in subsection (2) to the Commission at least 3 months before their entry into force.

• (4) In this section, "standards" include standards on professional ethics and internal quality control in addition to standards on the assurance of sustainability reporting.]

1611. F1226[Organisation of work of statutory auditors and audit firms when carrying out assurance of sustainability reporting

1611. (1) A statutory audit firm, when carrying out the assurance of sustainability reporting of an applicable company, shall designate at least one key sustainability partner, who may be one of the key audit partners designated under section 1542, who shall be actively involved in the carrying out of the assurance of sustainability reporting.

• (2) A statutory audit firm shall –

• (a) provide the key sustainability partner with sufficient resources and with personnel that have the necessary competence and capabilities to discharge his or her duties appropriately, and

• (b) ensure that the main criteria in selecting the key sustainability partner are securing assurance quality, independence and competence.

• (3) A statutory auditor, when carrying out the assurance of sustainability reporting of an applicable company, shall devote sufficient time to the assurance engagement and shall assign sufficient resources to enable him or her to carry out his or her duties appropriately.

• (4) Without prejudice to section 1542(4), a statutory auditor or audit firm shall keep records of any contraventions by him or her of the relevant provisions in relation to the assurance of sustainability reporting.

• (5) A statutory auditor or audit firm shall keep records of any consequences of any contravention referred to in subsection (4), including the measures taken to address such contravention and to modify his or her internal quality control system.

• (6) A statutory auditor or audit firm shall prepare an annual report containing an overview of any measures taken pursuant to subsection (5) and, in the case of an audit firm, shall communicate that report internally to the partners or directors, as may be appropriate, of the audit firm.]

1612. F1227[Organisation of work of statutory auditors and audit firms - assurance files

1612. (1) A statutory auditor or statutory audit firm shall maintain a client account record that includes the following data for each assurance client:

• (a) the name, address and place of business;

• (b) in the case of a statutory audit firm, the name of the key sustainability partner;

• (c) the fees charged for the assurance of sustainability reporting and the fees charged for other services in any financial year.

• (2) A statutory auditor or a statutory audit firm shall create an assurance file for each assurance engagement which shall be closed not later than 60 days after the date of signature of the assurance report.

• (3) A statutory auditor or a statutory audit firm shall document and retain at least the data recorded pursuant to section 1539 as applied by section 1621 as regards the assurance of sustainability reporting.

• (4) A statutory auditor or a statutory audit firm shall retain any other data and documents that are of importance in support of the assurance report and for monitoring compliance with this Part, the Audit Directive and other applicable legal requirements as regards the assurance of sustainability reporting.

• (5) A statutory auditor or a statutory audit firm shall keep records of any complaints made in writing about the performance of the assurance of sustainability reporting carried out by him or her.

• (6) Where the same statutory auditor carries out the statutory audit of annual financial statements and the assurance of sustainability reporting of an applicable company, the assurance file referred to in subsection (2) may be included in the audit file referred to in section 1543(2).]

1613. F1228[Assurance report on sustainability reporting

1613. (1) The statutory auditor or statutory audit firm shall present the results of the assurance of sustainability reporting in an assurance report on sustainability reporting (in this Part referred to as the "assurance report") which shall be prepared in accordance with the assurance standards referred to in section 1610.

• (2) The assurance report shall be in writing and shall:

• (a) identify the entities whose sustainability reporting or consolidated sustainability reporting is the subject of the assurance engagement;

• (b) specify the sustainability reporting concerned and the date and period it covers;

• (c) identify the sustainability reporting framework that has been applied in its preparation;

• (d) include a description of the scope of the assurance of sustainability reporting which shall, as a minimum, identify the assurance standards in accordance with which the assurance of sustainability reporting was conducted.

• (3) The assurance report shall state clearly the statutory auditors’ opinion, based on a limited assurance engagement, as regards the compliance of the sustainability reporting of the applicable company with the requirements of this Part, including –

• (a) the compliance of the sustainability reporting with the sustainability reporting standards adopted by the Commission pursuant to Article 29b or Article 29c of the Accounting Directive,

• (b) the process carried out by the applicable company to identify the information reported pursuant to those sustainability reporting standards,

• (c) the compliance with the requirement to mark-up sustainability reporting in accordance with section 1600, and

• (d) the compliance with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852.

• (4)
• (a) Where the assurance of sustainability reporting was carried out by more than one statutory auditor or statutory audit firm, the statutory auditors or audit firms shall, subject to paragraph (b), agree on the results of the assurance of sustainability reporting and submit a joint assurance report and opinion.

• (b) In the case of disagreement, each statutory auditor or statutory audit firm shall submit his, her or its opinion in a separate paragraph of the assurance report and shall state the reason for the disagreement.

• (5)
• (a) The assurance report shall be signed and dated by the statutory auditor carrying out the assurance of sustainability reporting.

• (b) Where a statutory audit firm carries out the assurance of sustainability reporting, the assurance report shall bear the signature of at least the statutory auditors carrying out the assurance of sustainability reporting on behalf of the audit firm.

• (c) Where more than one statutory auditor or statutory audit firm have been simultaneously engaged, the assurance report shall be signed by all statutory auditors or at least by the statutory auditors carrying out the assurance of sustainability reporting on behalf of each audit firm.

• (6) Where the same statutory auditor carries out the statutory audit of annual financial statements and the assurance of sustainability reporting of an applicable company, the assurance report may be included as a separate section of the statutory auditors’ report required by section 391.]

1614. F1229[Assurance of consolidated sustainability reporting

1614. (1) In the case of an assurance engagement concerning the consolidated sustainability reporting of a group, the group auditor shall bear the full responsibility for the assurance report.

• (2) The group auditor shall –

• (a) evaluate the assurance work carried out by any auditors for the purpose of the assurance of sustainability reporting of the group, and

• (b) document the nature, timing and extent of the work carried out by those auditors, including the group auditor’s review of the relevant parts of those auditors’ assurance documentation.

• (3) For the purposes of the assurance of consolidated sustainability reporting of a group, auditors may be one or more of the following:

• (a) statutory auditors;

• (b) statutory audit firms;

• (c) Member State auditors;

• (d) Member State audit firms;

• (e) third-country auditors;

• (f) third-country audit entities;

• (g) independent assurance services providers.

• (4) The group auditor shall carry out a review, and maintain documentation of such review, of the work of whoever referred to in subsection (3) performed assurance work for the purposes of the assurance of consolidated sustainability reporting of the group.

• (5) The documentation referred to in subsections (2)(b) and (4) to be retained by the group auditor shall be such as enables the Supervisory Authority, or the recognised accountancy body, where applicable, to conduct a quality assurance inspection or review, as the case may be, pursuant to Chapter 7.

• (6) The group auditor shall request the agreement of the auditors referred to in subsection (3) to transfer relevant documentation during the carrying out of the assurance of consolidated sustainability reporting as a condition of the reliance by the group auditor on the work of such auditors.

• (7)
• (a) Where the group auditor is unable to secure an agreement referred to in subsection (6), he or she shall take appropriate measures in order to form an opinion on the consolidated sustainability reporting of the group and inform the Supervisory Authority or the recognised accountancy body, where applicable.

• (b) Such measures shall, as appropriate, include carrying out additional assurance work, either directly or by outsourcing the additional assurance work, in the relevant subsidiary.

• (8)
• (a) The group auditor who is subject to a quality assurance inspection or review or an investigation concerning the assurance of the consolidated sustainability reporting of a group shall, when requested, make available to the Supervisory Authority or the recognised accountancy body, where applicable, the relevant documentation he or she has retained concerning the assurance work performed by the entities referred to in subsection (3) for the purpose of the assurance of consolidated sustainability reporting of the group, including any working papers relevant to the assurance of consolidated sustainability reporting.

• (b) The Supervisory Authority may request additional documentation on the assurance work performed by a statutory auditor or audit firm for the purpose of the assurance of consolidated sustainability reporting from the competent authorities in other Member States, where applicable, pursuant to Chapter 17 of Part 27 as applied by section 1647.]

1615. F1230[Further responsibility of group auditor in relation to assurance of sustainability reporting

1615. (1) Subject to subsection (2), the Supervisory Authority may request additional documentation on the assurance work performed by any third-country auditor or third-country audit entity on a holding undertaking or on a subsidiary undertaking of a group from the relevant competent authorities in third countries through the working arrangements referred to in section 1568(1)(c) or 1569(c) as applied by section 1648.

• (2) Where –

• (a) an assurance of consolidated sustainability reporting of a group is carried out, and

• (b) the assurance of sustainability reporting of a holding undertaking or subsidiary undertaking of the group is carried out by one or more third-country auditors, third-country entities or independent assurance services providers that have no working arrangements as referred to in section 1568(1)(c) or 1569(c),

the group auditor is responsible for ensuring proper delivery, when requested, to the Supervisory Authority of the additional documentation of the assurance work performed by those third-country auditors, third-country entities or independent assurance services providers, including the working papers relevant to the assurance of sustainability reporting of the group.

• (3) To ensure such delivery, the group auditor shall retain a copy of such assurance documentation, or alternatively –

• (a) agree, with one or more third-country auditors, third-country entities or independent assurance services providers, arrangements for the group auditor’s proper and unrestricted access, upon request, to the documentation, or

• (b) take any other appropriate action.

• (4) Where the assurance working papers cannot, for legal or other reasons, be passed from a third country to the group auditor, the documentation retained by the group auditor shall include –

• (a) evidence that he or she has undertaken the appropriate procedures in order to gain access to the assurance documentation, and

• (b) in the case of an impediment other than a legal one arising from legislation of the third country or countries concerned, evidence supporting the existence of such an impediment.]

1616. F1231[Audit committees for public-interest entities – responsibilities in relation to assurance of sustainability reporting

1616. Without prejudice to section 1551 and the responsibility of the directors of a public-interest entity, the responsibilities of an audit committee established pursuant to that section for an applicable company shall include –

• (a) informing directors of the entity of the outcome of the assurance of sustainability reporting and explaining how the assurance of sustainability reporting contributed to the integrity of the sustainability reporting and what the role of the audit committee was in that process,

• (b) monitoring the sustainability reporting process of the undertaking, including its electronic reporting process as referred to in section 1600 and the process carried out by the undertaking to identify the information reporting in accordance with the sustainability reporting standards, and submitting recommendations or proposals to the directors of the entity to ensure its integrity,

• (c) monitoring the effectiveness of the entity’s internal quality control and risk management systems and, where applicable, its internal audit, regarding the sustainability reporting of the undertaking, including its electronic reporting process as referred to in section 1600, without breaching its independence,

• (d) monitoring the assurance of the entity and group sustainability reporting, in particular its performance, taking into account any findings and conclusions by the Supervisory Authority pursuant to Article 26(6) of Regulation (EU) No 537/2014, and

• (e) reviewing and monitoring the independence of the statutory auditors or audit firms carrying out the assurance of sustainability reporting of the entity in accordance with section 1621.]

1617. F1232[Resolution for accredited third party to prepare report on certain elements of sustainability reporting

1617. (1) Subject to subsection (3), in the case of an applicable company falling within paragraph (a) of the definition of "applicable company" that is subject to the requirements of section 1590 or 1596, shareholders representing 5 per cent or more of the voting rights or of the share capital of the company, acting individually or collectively, shall have the right to table a draft resolution to be adopted in the annual general meeting of the company, requiring an accredited third party that does not belong to the same audit firm or network as the statutory auditor or audit firm carrying out the statutory audit to prepare a report on certain elements of the sustainability reporting and that such report be made available to the annual general meeting.

• (2) Where an applicable company is required to have elements of its sustainability reporting verified by an accredited independent third party, the directors of the applicable company shall ensure that the report of the accredited independent third party is either –

• (a) annexed to the directors’ report of the company for the financial year concerned, or

• (b) published on the company’s website.

• (3) This section does not apply to a public-interest entity falling within paragraph (a) of the definition of "public-interest entity".]

1618. F1233[Prohibited non-audit services in case of assurance of sustainability reporting of public-interest entity

1618. (1) A statutory auditor or statutory audit firm carrying out the assurance of sustainability reporting of a public-interest entity, or any member of the network to which the relevant sustainability assurance provider belongs, shall not directly or indirectly provide to the public-interest entity that is the subject of the assurance of sustainability reporting, to its holding undertaking or to its controlled undertakings within the European Union, the prohibited non-audit services referred to in points (b) and (c) and points (e) to (k) of the second subparagraph of Article 5(1) of Regulation (EU) No 537/2014 during –

• (a) the period between the beginning of the period subject to the assurance of sustainability reporting and the issuing of the assurance report, and

• (b) the financial year immediately preceding the period referred to in paragraph (a) in relation to the services referred to in point (e) of the second subparagraph of Article 5(1) of Regulation (EU) No 537/2014.

• (2) A statutory auditor or statutory audit firm carrying out the assurance of sustainability reporting of a public-interest entity and, where the statutory auditor or statutory audit firm belongs to a network, any member of such network, may provide to the public-interest entity that is the subject of the assurance of sustainability reporting, to its holding undertaking or to its controlled undertakings, non-audit services other than the prohibited non-audit services referred to in subsection (1) or, if applicable, the prohibited non-audit services referred to in the second subparagraph of Article 5(1) of Regulation (EU) No 537/2014 or services considered by Member States to represent a threat to independence as referred to in Article 5(2) of that Regulation, subject to the approval of the audit committee after it has properly assessed threats to independence and the safeguards applied in accordance with sections 1538 and 1539.

• (3) When a member of a network to which the statutory auditor or statutory audit firm belongs provides the prohibited non-audit services referred to in subsection (1) to an undertaking incorporated in a third country which is controlled by the public-interest entity that is the subject of the assurance of sustainability reporting, the statutory auditor or audit firm concerned shall assess whether his, her or its independence would be compromised by such provision of services by the member of the network.

• (4) If his, her or its independence is affected, the statutory auditor or audit firm –

• (a) shall apply safeguards in order to mitigate the threats caused by the provision of prohibited non-audit services referred to in subsection (1) in a third country, and

• (b) may continue to carry out the assurance of sustainability reporting of the public-interest entity only if he, she or it can justify, in accordance with sections 1538 and 1539, that the provision of such services does not affect his, her or its professional judgement and the assurance report on sustainability reporting.]

1619. F1234[Restrictions with regard to fees

1619. (1) A recognised accountancy body shall ensure that its standards include provisions that fees for the assurance of sustainability reporting –

• (a) are not to be influenced by, or determined by, the provision of additional services to the undertaking that is the subject of the assurance of sustainability reporting, and

• (b) are not to be based on any form of contingency.

• (2) In this section, "standards" has the same meaning as it has in Part 27.]

1620. F1235[Confidentiality and professional secrecy

1620. The rules of confidentiality and professional secrecy in Chapter 11 of Part 27 shall apply with respect to information and documents to which a statutory auditor or audit firm has access when carrying out the assurance of sustainability reporting in the same manner as they apply in relation to the carrying out of a statutory audit subject to the following modifications:

• (a) references (howsoever expressed) to carrying out a statutory audit shall be construed as references to carrying out the assurance of sustainability reporting;

• (b) references (howsoever expressed) to a statutory auditor or audit firm ceasing to be engaged in an audit shall be constructed as references to a statutory auditor or audit firm ceasing to be engaged in the assurance of sustainability reporting of the company;

• (c) references to a key audit partner shall be construed as references to a key sustainability partner;

• (d) references to audit work shall be construed as references to assurance work;

• (e) references to audit working papers or other documents relating to the audit shall be construed as references to assurance working papers or other documents relating to the assurance of sustainability reporting;

• (f) references (howsoever expressed) to the audited undertaking shall be construed as references to the applicable company the subject of the assurance of sustainability reporting;

• (g) any other necessary modifications.]

1621. F1236[Independence, objectivity and professional scepticism

1621. The requirements of independence, objectivity and professional scepticism in sections 1533 to 1541 shall apply to statutory auditors or audit firms carrying out the assurance of sustainability reporting in the same manner as they apply to statutory auditors or audit firms carrying out a statutory audit, subject to the following modifications:

• (a) references (howsoever expressed) to carrying out a statutory audit shall be construed as references to the carrying out of the assurance of sustainability reporting;

• (b) references to the key audit partner shall be construed as references to the key sustainability partner;

• (c) references (howsoever expressed) to the audited undertaking shall be construed as references to the applicable company the subject of the assurance of sustainability reporting;

• (d) references to audit working papers shall be construed as references to assurance working papers;

• (e) any other necessary modifications.]

1622. F1237[Irregularities

1622. Article 7 of Regulation (EU) No 537/2014 applies to a statutory auditor or audit firm carrying out the assurance of sustainability reporting of a public-interest entity in the same manner as it applies to a statutory auditor or audit firm carrying out the statutory audit of a public-interest entity, and for that purpose –

• (a) references to carrying out the statutory audit of a public-interest entity shall be construed as references to carrying out the assurance of sustainability reporting of a public-interest entity, and

• (b) references to the audited entity shall be construed as references to the entity the subject of the assurance of sustainability reporting.]

1623. F1238[Removal or resignation of statutory auditors from carrying out assurance of sustainability reporting

1623. Chapter 20 of Part 6 shall apply to the removal or resignation of statutory auditors appointed to carry out the assurance of sustainability reporting of an applicable company in the same manner as it applies to the removal or resignation of statutory auditors appointed to carry out a statutory audit, subject to the following modifications:

• (a) references to the removal or resignation of a statutory auditor shall be construed as references to the removal or resignation, as the case may be, of a statutory auditor in respect of the carrying out of the assurance of sustainability reporting of the company;

• (b) references to accounting treatments or audit procedures shall be construed as references to sustainability reporting or assurance procedures;

• (c) any other necessary modifications.]

1624. F1239[Removal of statutory auditors from carrying out assurance of sustainability reporting of public-interest entities

1624. (1) In the case of the assurance of sustainability reporting of a public-interest entity –

• (a) shareholders representing 5 per cent or more of the voting rights or of the share capital, or

• (b) the Supervisory Authority,

may bring a claim before the High Court for the removal of the statutory auditor or audit firm carrying out the assurance of sustainability reporting of the entity subject to there being good and substantial grounds for bringing such a claim before the Court.

• (2) The grounds for bringing the claim before the High Court shall relate to –

• (a) the conduct of the auditor or audit firm with regard to the performance of his or her duties in relation to the carrying out of the assurance of sustainability reporting of the public-interest entity or otherwise, or

• (b) the petitioner’s opinion that it is in the best interests of the public-interest entity to do so.

• (3) For the purposes of subsection (2) –

• (a) diverging opinions on sustainability reporting or assurance procedures cannot constitute the basis for the passing of any resolution for the purposes of that subsection, and

• (b) "best interests of the public-interest entity" shall not include any illegal or improper motive with regard to avoiding disclosures or detection of any contravention by the entity of this Act.]

1625. F1240[Notification to Supervisory Authority of certain matters regarding cessation of office

1625. Sections 403 and 404 shall apply to a statutory auditor appointed for the purposes of carrying out the assurance of sustainability reporting of an applicable company in the same manner as it applies to statutory auditors appointed for the purposes of carrying out a statutory audit subject to the following:

• (a) a reference to section 394 or 400, or a provision of either of those sections, shall be construed as a reference to that section or that provision as applied by section 1623;

• (b) any other necessary modifications.]

F1241[CHAPTER 5

Approval to carry out assurance of sustainability reporting

1626. Approval to carry out assurance of sustainability reporting

1626. (1) A recognised accountancy body may, on application made to it by an individual or a firm, approve, under this Part, the applicant to carry out the assurance of sustainability reporting.

• (2) A recognised accountancy body may, on application made to it by a third-country auditor and in accordance with section 1640, approve, under this Part, the applicant to carry out the assurance of sustainability reporting.

• (3) The recognised accountancy body shall maintain a record in writing of all persons approved by it to carry out the assurance of sustainability reporting, including the individual identification number assigned to any such persons in accordance with section 1464.]

1627. F1242[Conditions for approval to carry out assurance of sustainability reporting as statutory auditor

1627. Subject to section 1635, a person shall not be eligible for approval to carry out the assurance of sustainability reporting unless he or she is approved and registered under Part 27 as a statutory auditor and either –

• (a) holds an appropriate qualification as referred to in section 1628,

• (b) in the case of a Member State auditor, complies with section 1629, or

• (c) in the case of a third-country auditor, complies with sections 1629 and 1640.]

1629. F1243[Appropriate qualification for purpose of section 1627(a)

1628. (1) A person holds an appropriate qualification, as required by section 1627(a), if he or she holds a qualification granted by a recognised accountancy body whose standards relating to training and qualifications for the approval to carry out the assurance of sustainability reporting are not less than those specified in Schedule 23.

• (2) In subsection (1), "qualification" means a qualification to undertake the assurance of sustainability reporting of a company in so far as required by European Union law.

• (3) A recognised accountancy body may exempt in writing a person who has passed a university or equivalent examination, or who holds a university degree or equivalent qualification, in one or more of the subjects referred to in the test of theoretical knowledge specified in Schedule 23 if the body is satisfied that the passing of that examination, or the holding of that university degree or equivalent qualification, renders it unnecessary for the person to undergo that test in so far as those subjects are concerned.

• (4) The Supervisory Authority shall, at such times as it thinks it appropriate to do so, issue guidelines to recognised accountancy bodies as to the specific matters that should be given regard to in reaching a decision under subsection (3) whether or not to grant an exemption under that subsection to a person.]

1630. F1244[Aptitude test to be passed

1629. (1) Subject to subsection (2), a Member State auditor or third-country auditor applying for approval to carry out the assurance of sustainability reporting in the State is required to sit and pass an aptitude test to demonstrate his or her knowledge of the enactments and practice that are relevant to the assurance of sustainability reporting in the State.

• (2) Subsection (1) shall not apply to a Member State auditor or third-country auditor if the recognised accountancy body is satisfied that he or she has otherwise demonstrated sufficient knowledge of the enactments and practice referred to in that subsection.

• (3) The Supervisory Authority shall, at such time as it thinks it appropriate to do so, issue guidelines to each recognised accountancy body as to the specific matters that should be given regard to in reaching a decision under subsection (2) whether or not a person has demonstrated the knowledge referred to in subsection (1).

• (4) A recognised accountancy body may charge and impose on a Member State auditor or third-country auditor a fee, of an amount specified from time to time by the Minister, that is sufficient to meet the body’s administrative expenses in respect of the administration of an aptitude test under this section in relation to him or her.

• (5) A fee imposed under subsection (4) may, in default of payment, be recovered from the Member State auditor or third-country auditor concerned as a simple contract debt in any court of competent jurisdiction.]

1630. F1245[Scope of aptitude test

1630. (1) The aptitude test referred to in section 1629 shall –

• (a) be conducted in either the Irish language or the English language, and

• (b) relate only to the applicant’s adequate knowledge of the enactments and practice that are relevant to the assurance of sustainability reporting in the State.

• (2) Subject to subsection (3), the various matters that shall constitute the contents of the aptitude test shall be decided by the recognised accountancy body after it has received the approval of the Supervisory Authority of the contents of the test.

• (3) A recognised accountancy body shall not alter the contents of an aptitude test approved under subsection (2) unless such alteration has been approved by the Supervisory Authority.]

1631. F1246[Adequate standards to be applied in administration of aptitude test

1631. (1) Subject to subsection (2), a recognised accountancy body shall apply adequate standards in the administration of the aptitude test referred to in section 1629.

• (2) No standards shall be used by a recognised accountancy body for the purposes of subsection (1) unless those standards have (with respect to that use) first been approved by the Supervisory Authority.]

1632. F1247[Conditions for approval to carry out assurance of sustainability reporting as a statutory audit firm

1632. (1) In this section, references to a firm include references to a Member State audit firm if the firm is not seeking registration in accordance with section 1633.

• (2) A firm shall not be eligible for approval to carry out the assurance of sustainability reporting unless –

• (a) the firm is approved and registered under Part 27 as a statutory audit firm, and

• (b) the individuals who carry out the assurance of sustainability reporting in the State on behalf of the firm are approved to do so in accordance with this Part.]

1633. F1248[Basis on which audit firms approved in other Member States may carry out assurance of sustainability reporting in State

1633. (1) A Member State audit firm shall be entitled to carry out the assurance of sustainability reporting in the State if the key sustainability partner who carries out the assurance on behalf of the audit firm, both at the time of registration (in accordance with subsection (2)) and at all times during the registration of the firm, complies with the requirements of this Chapter.

• (2)
• (a) An audit firm that wishes to carry out the assurance of sustainability reporting in the State where the State is not its home Member State shall, before carrying out any such assurance, register with the recognised accountancy body by which the key sustainability partner referred to in subsection (1) is approved.

• (b) The recognised accountancy body shall ensure that an audit firm which complies with subsection (1) is registered in accordance with the requirements of Chapter 5 of Part 27, section 1636 and Schedules 20 and 24.

• (3)
• (a) The recognised accountancy body shall register the Member State audit firm if it is satisfied that the audit firm is registered with the counterpart authority in the audit firm’s home Member State to carry out the assurance of sustainability reporting.

• (b) Where the recognised accountancy body intends to rely on a certificate, issued by the counterpart authority in the home Member State, attesting to the registration of the audit firm in the home Member State, the recognised accountancy body may require that such certificate be issued on a date falling within the 3 months immediately preceding that date on which the recognised accountancy body is given that certificate.

• (4) The recognised accountancy body shall maintain a record of all Member State audit firms registered with it under subsection (2)(a), including the individual identification number assigned to such firms in accordance with section 1465.

• (5) The recognised accountancy body shall inform the counterpart authority in the home Member State of the registration of the audit firm.

• (6) Where a recognised accountancy body receives a notification from another Member State that an audit firm, whose home Member State is the State, has registered with the counterpart authority in the host Member State to carry out the assurance of sustainability reporting, the recognised accountancy body shall ensure that such registration is recorded in the public register.]

1634. F1249[Restriction as to persons who may carry out assurance of sustainability reporting

1634. (1) The assurance of sustainability reporting shall be carried out only by –

• (a) statutory auditors or statutory audit firms that are approved under this Part to carry out the assurance of sustainability reporting, or

• (b) audit firms registered in accordance with section 1633.

• (2) A person shall not –

• (a) act as if he or she is approved to carry out the assurance of sustainability reporting,

• (b) describe himself or herself as a person who may carry out the assurance of sustainability reporting, or

• (c) so hold himself or herself out as to indicate, or be reasonably understood to indicate, that he or she may carry out the assurance of sustainability reporting, unless he or she has been approved in accordance with this Part.

• (3) A firm shall not –

• (a) act as if it is approved to carry out the assurance of sustainability reporting,

• (b) describe itself as a firm who may carry out the assurance of sustainability reporting, or

• (c) so hold itself out as to indicate, or be reasonably understood to indicate, that it may carry out the assurance of sustainability reporting, unless it has been approved in accordance with this Part or registered in accordance with section 1633.]

1635. F1250[Transitional provisions relating to approval of certain statutory auditors

1635. (1) Subject to subsection (3), a statutory auditor who, immediately before 1 January 2024, stood approved under Part 27 to carry out statutory audits shall not be subject to the requirements of paragraph (a), (b) or (c) of section 1627 and Schedule 23.

• (2) Subject to subsection (3), where a person was, on 1 January 2024, undergoing the approval process provided for in Part 27, that person shall not be subject to the requirements of paragraph (a), (b) or (c) of section 1627 and Schedule 23, provided the person completes that process by 1 January 2026.

• (3) A statutory auditor who, immediately before 1 January 2026, stands approved under this Part shall acquire the necessary knowledge of sustainability reporting and the assurance of sustainability reporting, including the subjects listed in Schedule 23, by taking part in the continuing education required by section 1638.]

1636. F1251[Public register

1636. The public register referred to in section 1484(1) shall, in addition to the information referred to in that section, contain the information set out in Schedule 24 in relation to the categories of persons referred to in paragraphs (a), (b) and (c) of that subsection.]

1637. F1252[Notification of information to Registrar

1637. (1) (a) An auditor or audit firm shall, as soon as may be after he or she is approved under this Chapter to carry out the assurance of sustainability reporting, notify the relevant information to the recognised accountancy body.

• (b) A Member State audit firm shall, as soon as may be after it is registered in accordance with section 1633, notify the relevant information to the recognised accountancy body.

• (c) A third-country auditor shall, as soon as may be after he or she is approved under this Part to carry out the assurance of sustainability reporting, notify the relevant information to the recognised accountancy body.

• (2) On receipt of a notification under subsection (1), and having carried out any verification of the information as seems to it to be necessary, the recognised accountancy body, as appropriate, shall notify to the Registrar –

• (a) the relevant information contained in the notification, and

• (b) the individual identification number assigned by it to the auditor, audit firm or third-country auditor under section 1464(6) or a Member State audit firm under section 1465(4).

• (3) The notifications under subsections (1) and (2) shall each be made in such form and manner as the Registrar specifies.

• (4) In this section, "relevant information" means the information set out in paragraph 1, 2 or 3, as the case may be, of Schedule 24.

• (5) For the avoidance of doubt, in the event that a recognised accountancy body is no longer recognised by the Supervisory Authority for the purposes of the relevant provisions or otherwise ceases to exist, the notifications under subsections (1) and (2) shall cease to have effect and the Registrar shall remove all information contained in such notifications from the public register.]

1638. F1253[Continuing education

1638. (1) It shall be a condition of an approval granted under this Chapter that the statutory auditor shall take part in appropriate programmes of continuing education in order to maintain his or her theoretical knowledge, professional skills and values, including, in particular, in relation to the assurance of sustainability reporting, at a sufficiently high level.

• (2) The Supervisory Authority shall, at such times as it thinks it appropriate to do so, issue guidelines to the recognised accountancy bodies with regard to what constitutes compliance with the condition referred to in subsection (1).]

1639. F1254[Withdrawal of approval under this Part

1639. (1) Without prejudice to Chapter 4 of Part 27, a recognised accountancy body shall, subject to subsection (2), withdraw an approval of a person to carry out the assurance of sustainability reporting under this Part if, but only if, the person –

• (a) no longer stands approved under Part 27 as a statutory auditor or statutory audit firm, or

• (b) no longer complies with paragraph (a), (b) or (c) of section 1627.

• (2) For the purposes of subsection (1), sections 1479(3) to (16), 1480(3) to (16), 1481, 1482 and 1483 shall apply to the withdrawal of approval under this Part in the same manner as they apply to the withdrawal of approval under Part 27 subject to the following modifications:

• (a) a reference (howsoever expressed) to the approval under Part 27 of the person as a statutory auditor or statutory audit firm shall be construed as a reference to the approval under this Part of a person to carry out the assurance of sustainability reporting;

• (b) a reference in sections 1479 and 1480 to subsection (2)(a), (b) or (c) shall be construed as reference to subsection (1)(a) or (b) of this section;

• (c) any other necessary modifications.]

F1255[CHAPTER 6

Approval and registration of third-country auditors for purposes of carrying out assurance of sustainability reporting

1640. Approval of third-country auditors to carry out assurance of sustainability reporting

1640. (1) Without prejudice to the requirements of Chapter 5 and subject to subsection (2), a recognised accountancy body may approve a third-country auditor to carry out the assurance of sustainability reporting if that person has furnished proof that he or she complies with requirements equivalent to those specified in section 1628.

• (2) A third-country auditor shall not be approved under subsection (1) unless reciprocal arrangements with the third country concerned are in place, that is to say arrangements that enable a statutory auditor to carry out the assurance of sustainability reporting in that third country –

• (a) by virtue of the law of that third country, and

• (b) on fulfilment by the statutory auditor concerned of requirements no more onerous than those specified by this section and Chapter 5 for the third-country auditor’s approval under subsection (1).]

1641. F1256[Registration of third-country audit firms and third-country audit entities for assurance of sustainability reporting

1641. (1) (a) Subject to paragraph (b) and Chapter 21 of Part 27 as applied by subsection (2), the Supervisory Authority shall, in accordance with the relevant provisions of Chapter 5 of Part 27, section 1636 and Schedules 20 and 24, cause to be registered in each year in the public register every third-country auditor and third-country audit entity that indicates, in writing to it, his or her intention to provide an assurance report concerning the sustainability reporting of an applicable company that falls within section 1573(3).

• (b) Paragraph (a) shall not apply to a third-country auditor or third-country audit entity that provides assurance reports of undertakings incorporated in third countries in respect of which –

• (i) the Commission has not yet made a decision that the public oversight, quality assurance and investigation and penalty systems for third-country auditors and third-country audit entities meet requirements which shall be considered equivalent to those of Articles 29, 30 and 32 of the Audit Directive, or

• (ii) such a decision was made but for a specified period of time which has now expired.

• (2) Chapter 21 of Part 27 shall apply in relation to the registration of a third-country auditor and third-country audit entity pursuant to subsection (1) in the same manner as it applies in respect of the registration of a third-country auditor and third-country audit entity pursuant to section 1573 subject to the following modifications:

• (a) subsection (1) of this section shall be substituted for subsection (1) of section 1573;

• (b) references in section 1573 to subsection (1) of that section shall be construed as references to subsection (1) of this section;

• (c) references (howsoever expressed) to registration pursuant to section 1573 shall be construed as references to registration pursuant to subsection (1);

• (d) a reference to registration under Chapter 5 shall include reference to registration in accordance with section 1636;

• (e) references to Schedule 20 shall be construed as including a reference to Schedule 24;

• (f) a reference in section 1576 to an audit report provided by a third-country auditor or third-country audit entity concerning the accounts or consolidated accounts of an undertaking falling within section 1573(3) shall be construed as a reference to an assurance report provided by a third-country auditor or third-country audit entity concerning the sustainability reporting of an applicable company that falls within section 1573(3);

• (g) a reference in section 1577(2) to sections 1464 and 1472 shall include a reference to sections 1626 and 1628;

• (h) a reference to the audit of accounts or consolidated accounts shall be construed as reference to the assurance of sustainability reporting;

• (i) a reference to international auditing standards as referred to in section 1526 shall be construed as reference to assurance standards as referred to in section 1610;

• (j) any other necessary modifications.]

F1257[CHAPTER 7 Quality assurance and oversight of statutory auditors carrying out assurance of sustainability reporting

1642. System of quality assurance

1642. (1) Without prejudice to Chapter 7 of Part 27, the Supervisory Authority shall ensure that the quality assurance systems it has in place pursuant to that Chapter include a system of quality assurance in relation to the carrying out of the assurance of sustainability reporting in accordance with this Part.

• (2) Without prejudice to Chapter 7 of Part 27, a recognised accountancy body shall ensure that the system of quality assurance it has in place pursuant to that Chapter includes a system of quality assurance of –

• (a) the body’s members’ activities as statutory auditors and audit firms that carry out the assurance of sustainability reporting of entities not referred to in section 1494(1) and (2), and

• (b) the activities, as statutory auditors and audit firms that carry out the assurance of sustainability reporting, of persons who, though not members of the recognised accountancy body, are persons in relation to whom the body may perform functions under the relevant provisions.

• (3) For the purposes of subsection (1), a reference in Chapter 7 of Part 27 to registered third-country auditors and third-country audit entities shall include a reference to a third-country auditor or third-country audit entity registered under section 1641.]

1643. F1258[Organisation of quality assurance system

1643. (1) Section 1496 shall apply in relation to the quality assurance system referred to in section 1642(2) in the same manner as it applies in relation to the quality assurance system referred to in section 1495(2) subject to the following modifications:

• (a) the reference in subsection (1)(d) and subsection (2)(a) to appropriate professional education and relevant experience in statutory audit and financial reporting shall be construed as a reference to appropriate professional education and relevant experience in sustainability reporting and the assurance of sustainability reporting or other sustainability-related services;

• (b) the following shall be substituted for paragraph (f) of subsection (1):

• “(f) the scope of quality assurance reviews of assurance of sustainability reporting, supported by adequate testing of selected assurance files, includes, except where otherwise agreed with the Supervisory Authority, an assessment of –

  • (i) compliance with applicable assurance of sustainability standards and independence requirements,

  • (ii) the quantity and quality of resources spent,

  • (iii) the fees charged in respect of the assurance of sustainability reporting, and

  • (iv) the internal quality control system of the audit firm,”;

• (c) the reference in subsection (1)(h) to section 1497 shall be construed as a reference to section 1644;

• (d) the following shall be substituted for subsection (3):

• “(3) For the purpose of subsection (1)(k), a recognised accountancy body, when undertaking quality assurance reviews of the assurance of sustainability reporting of the consolidated sustainability reporting of medium or small companies, shall take account of the fact that assurance standards adopted in accordance with Article 26a of the Audit Directive are designed to be applied in a manner that is proportionate to the scale and complexity of the business of the undertaking.”;

• (e) any other necessary modifications.

• (2) Until 31 December 2025, persons who carry out quality assurance reviews relating to the assurance of sustainability reporting shall be exempted from the requirement in section 1496(2)(a) as applied by subsection (1) to have relevant experience in sustainability reporting and the assurance of sustainability reporting or other sustainability-related services.]

1644. F1259[Quality assurance review deemed to include individual auditors in certain cases

1644. For the purpose of section 1496(1)(h) as applied by section 1643, a quality assurance review conducted in relation to a statutory audit firm shall be regarded as a quality assurance review of all statutory auditors carrying out the assurance of sustainability reporting on behalf of the firm provided that the firm has a common quality assurance policy with which each such statutory auditor is required to comply.]

1645. F1260[Right of recognised accountancy body as regards professional discipline

1645. A recognised accountancy body shall have the right to take disciplinary actions or impose sanctions in respect of statutory auditors and audit firms who carry out the assurance of sustainability reporting and shall have procedures in place to facilitate the taking or imposition of such action or sanctions.]

1646. F1261[System of investigation and penalties

1646. (1) Without prejudice to section 1499 and subject to subsection (2), each recognised accountancy body shall, in respect of those auditors and audit firms in relation to whom, by virtue of section 930C, it may perform functions, institute arrangements to ensure that there are effective systems of investigations and penalties to detect, correct and prevent the inadequate execution of the assurance of sustainability reporting by those statutory auditors and audit firms.

• (2) Subsection (1) shall not be construed to empower a recognised accountancy body referred to in that subsection to impose a penalty on a statutory auditor or audit firm of a public-interest entity in the case of a relevant contravention committed by that auditor or audit firm that relates (whether in whole or in part) to that entity.

• (3) For the purposes of this section, sections 1500, 1501 and 1502, and Chapter 9 of Part 27, shall apply subject to the following modifications:

• (a) a reference to the carrying out of a statutory audit (howsoever expressed) shall be construed as reference to the carrying out of the assurance of sustainability reporting;

• (b) the penalties referred to in section 1501, provision for which shall be made by the means referred to in that section, shall, where appropriate, include withdrawal of approval under this Part or, if applicable, withdrawal of a registration under section 1633 and a temporary prohibition referred to in point (ca) of Article 30a(1) of the Audit Directive and a declaration referred to in point (da) of that Article;

• (c) the following shall be substituted for paragraphs (d) and (e) of section 1506(1):

• “(d) a declaration by the Supervisory Authority that the assurance report concerned does not meet the requirements of Chapter 4 of Part 28;

• (e) a direction by the Supervisory Authority to the specified person (being any one or more of a statutory auditor or key sustainability partner) prohibiting him or her, for the period specified in the direction (which may be up to and including an indefinite period), from carrying out the assurance of sustainability reporting or signing assurance reports, or both;”;

• (d) any other necessary modifications.]

1647. F1262[Co-operation and mutual recognition of regulatory arrangements between Member States

1647. The requirements of Chapters 17 and 18 of Part 27 shall apply in relation to the carrying out of the assurance of sustainability reporting in the same manner as they apply to the carrying out of statutory audits subject to the following modifications:

• (a) references (howsoever expressed) to the carrying out of statutory audits shall be construed as a reference to the carrying out of the assurance of sustainability reporting;

• (b) references (howsoever expressed) to the audited undertaking shall be construed as a reference to the applicable company the subject of the assurance of sustainability reporting;

• (c) any other necessary modifications.]

1648. F1263[Transfer of assurance working papers etc. to third-country competent authorities

1648. Chapter 19 of Part 27 shall apply to the transfer of working papers or other documents and inspection or investigation reports relating to the assurance of sustainability reporting in the same manner as it applies to audit working papers or other documents and inspection or investigation reports relating to audits subject to the following modifications:

• (a) references to audit working papers shall be construed as references to assurance working papers;

• (b) references to inspection or investigation reports relating to the audits shall be construed as references to inspection or investigation reports relating to the assurance of sustainability reporting;

• (c) references to an audit shall be construed as references to the assurance of sustainability reporting;

• (d) any other necessary modifications.]

SCHEDULE 1 FORM OF CONSTITUTION OF PRIVATE COMPANY LIMITED BY SHARES

Section 19

CONSTITUTION

OF

[name of company as below]

We, the several persons whose names and addresses are subscribed, wish to be formed into a company in pursuance of this constitution, and we agree to take the number of shares in the capital of the company set opposite our respective names.

[image omitted]

As appropriate:

signatures in writing of the above subscribers, attested by witness as provided for below; or

authentication in the manner referred to in section 888.

Dated the _ day of ______ 20 ___

Witness to the above Signatures:

Name: _____________

Address: __________

SCHEDULE 2 REPEALS AND REVOCATIONS

Section 4.

PART 1 ACTS OF THE OIREACHTAS REPEALED

Number and Year	Short title	Extent of Repeal
No. 33 of 1963	Companies Act 1963	The whole Act
No. 31 of 1977	Companies (Amendment) Act 1977	The whole Act
No. 10 of 1982	Companies (Amendment) Act 1982	The whole Act
No. 13 of 1983	Companies (Amendment) Act 1983	The whole Act
No. 25 of 1986	Companies (Amendment) Act 1986	The whole Act
No. 27 of 1988	Bankruptcy Act 1988	Section 51(2)
No. 27 of 1990	Companies (Amendment) Act 1990	The whole Act
No. 33 of 1990	Companies Act 1990	The whole Act
No. 8 of 1999	Companies (Amendment) Act 1999	The whole Act
No. 30 of 1999	Companies (Amendment) (No. 2) Act 1999	The whole Act
No. 28 of 2001	Company Law Enforcement Act 2001	The whole Act
No. 44 of 2003	Companies (Auditing and Accounting) Act 2003	The whole Act
No. 12 of 2005	Investment Funds, Companies and Miscellaneous Provisions Act 2005	Parts 3, 4, 5 and 6
No. 41 of 2006	Investment Funds, Companies and Miscellaneous Provisions Act 2006	Parts 2 and 3
No. 20 of 2009	Companies (Amendment) Act 2009	The whole Act
No. 45 of 2009	Companies (Miscellaneous Provisions) Act 2009	Sections 1 to 4
No. 22 of 2012	Companies (Amendment) Act 2012	The whole Act
No. 46 of 2013	Companies (Miscellaneous Provisions) Act 2013	Sections 2 to 8

PART 2 STATUTORY INSTRUMENTS REVOKED

Number and Year	Citation	Extent of Revocation
S.I. No. 163 of 1973	European Communities (Companies) Regulations 1973	The whole Statutory Instrument
S.I. No. 137 of 1987	European Communities (Mergers and Divisions of Companies) Regulations 1987	The whole Statutory Instrument
S.I. No. 201 of 1992	European Communities (Companies: Group Accounts) Regulations 1992	The whole Statutory Instrument
S.I. No. 395 of 1993	European Communities (Branch Disclosures) Regulations 1993	The whole Statutory Instrument
S.I. No. 275 of 1994	European Communities (Single Member Private Limited Companies) Regulations 1994	The whole Statutory Instrument
S.I. No. 437 of 2001	European Communities (Single-Member Private Limited Companies) Regulations 1994 (Amendment) Regulations 2001	The whole Statutory Instrument
S.I. No. 333 of 2002	European Communities (Corporate Insolvency) Regulations 2002	The whole Statutory Instrument
S.I. No. 765 of 2004	European Communities (Fair Value Accounting) Regulations 2004	The whole Statutory Instrument
S.I. No. 839 of 2004	European Communities (Companies) Regulations 2004	The whole Statutory Instrument
S.I. No. 49 of 2007	European Communities (Companies) (Amendment) Regulations 2007	The whole Statutory Instrument
S.I. No. 450 of 2009	European Communities (Directive 2006/46/EC) Regulations 2009	The whole Statutory Instrument
S.I. No. 83 of 2010	European Communities (Directive 2006/46/EC) (Amendment) Regulations 2010	The whole Statutory Instrument
S.I. No. 306 of 2011	European Communities (Mergers and Divisions of Companies) (Amendment) Regulations 2011	The whole Statutory Instrument
S.I. No. 304 of 2012	European Union (Accounts) Regulations 2012	The whole Statutory Instrument
S.I. No. 308 of 2012	Companies (Amendment) (No. 2) Act 1999 (section 32) Order 2012	The whole Statutory Instrument

F1264[SCHEDULE 3 ACCOUNTING PRINCIPLES, FORM AND CONTENT OF ENTITY FINANCIAL STATEMENTS]

F1264[PART I CONSTRUCTION OF REFERENCES TO PROVISIONS OF SCHEDULES]

F1264[1. (1) Without prejudice to the generality of section 9 of the Interpretation Act 2005 and its application to the body of this Act and to Schedules 1, 2 and 5 to 18—

• (a) a reference in this Schedule to a paragraph or Part is a reference to a paragraph or Part of this Schedule, unless it is indicated that a reference to some other enactment is intended,

• (b) a reference in this Schedule to a section is a reference to the section of the Part in which the reference occurs, unless it is indicated that a reference to some other enactment is intended, and

• (c) a reference in this Schedule to a subparagraph or clause is a reference to the subparagraph or clause of the provision in which the reference occurs, unless it is indicated that a reference to some other enactment is intended.

• (2) Provisions providing for the interpretation of certain expressions appearing in this Schedule are contained in Part VI.]

F1264[PART II GENERAL RULES AND FORMATS]

F1264[SECTION A

GENERAL RULES

• (a) every balance sheet of a company shall show the items listed in either of the balance sheet formats set out in Section B, and

• (b) every profit and loss account of a company shall show the items listed in either of the profit and loss accounts formats so set out,

in either case in the order and under the headings and sub-headings given in the format adopted.

• (2) Notwithstanding subparagraph (1)(a), in preparing the balance sheet of a company, the directors of the company may adapt one of the balance sheet formats in Section B so as to distinguish between current and non-current items in a different way, provided that—

• (a) the information given is at least equivalent to that which would have been required by the use of such format had it not been thus adapted, and

• (b) the presentation of those items is in accordance with generally accepted accounting principles or practice.

• (3) Notwithstanding subparagraph (1)(b), the directors of the company may prepare a statement of the performance of the company instead of a profit and loss account and in doing so may adapt one of the profit and loss account formats in Section B, provided that—

• (a) the information given is at least equivalent to that which would have been required by the use of such format had it not been thus adapted, and

• (b) the presentation of those items is in accordance with generally accepted accounting principles or practice.

• (4) Subparagraph (1) shall not be read as requiring the heading or sub-heading for any item in the balance sheet, or profit and loss account, of a company to be distinguished by any letter or number assigned to that item in the formats set out in Section B.

• (5) So far as is practicable, the following provisions of this section shall apply to the balance sheet and profit and loss account of a company notwithstanding any adaptation pursuant to subparagraphs (2) and (3).

• (2) Where any change is made in the format adopted in preparing a balance sheet or profit and loss account of a company, the reasons for the change, together with full particulars of the change, shall be given in a note to the financial statements in which the new format is first adopted.

• (2) The balance sheet, or profit and loss account, of a company may include an item representing or covering the amount of any asset or liability or income or expenditure not otherwise covered by any of the items listed in the format adopted but the following shall not be treated as assets in the balance sheet of a company—

• (a) preliminary expenses,

• (b) expenses of and commission on any issue of shares or debentures, and

• (c) costs of research.

• (3) The balance sheet, or profit and loss account, of a company may include subtotals where their inclusion facilitates the assessment of the financial position or profit or loss of the company for the financial year concerned.

• (4) Any items to which an Arabic number is assigned in any of the formats set out in Section B may be combined in the financial statements of a company—

• (a) in any case where the individual amounts of such items are not material to assessing the financial position or profit or loss of the company for the financial year concerned, or

• (b) in any case where the combination of such items facilitates that assessment.

• (5) Where items are combined in a company’s financial statements pursuant to subparagraph (4)(b), the individual amounts of any items so combined shall be disclosed in a note to the financial statements.

• (6) In preparing the balance sheet, or profit and loss account, of a company, the directors of the company shall adapt the arrangement and headings and sub-headings otherwise required by paragraph 2 in respect of items to which an Arabic number is assigned in the format adopted, in any case where the special nature of the company’s business requires such adaptation.

• (7) Where an asset or liability relates to more than one of the items listed in either of the balance sheet formats set out in Section B, its relationship to other items shall be disclosed either under the item where it is shown or in the notes to the financial statements.

• (8) The opening balance sheet for each financial year shall correspond to the closing balance sheet for the preceding financial year.

• (2) Corresponding amounts are not required for the movements in fixed assets during the year required by paragraph 46(1) and (3) or the movements in provisions required by paragraph 54(1) and (2).