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S.I. No. 262/2015 - European Union (Insurance Undertakings: Financial Statements) Regulations 2015

Type Statutory Instrument

Publication 2015-06-23

Last updated 2016-05-03

State In force superseded text

Text As published

Source Irish Statute Book

articles 8

This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.

1 amending act · 2016-05-03, S.I. No. 213/2016 - European Union (Insurance Undertakings: Financial Statements) (Amendm…

Reform history JSON API

(2) Where an undertaking holds 20 per cent or more of the voting rights in another undertaking, it shall be presumed to exercise such an influence over it unless the contrary is shown.

(3) The voting rights in an undertaking means the rights conferred on shareholders in respect of their shares or, in the case of an undertaking not having a share capital, on members, to vote at general meetings of the undertaking on all or substantially all matters.

(4) The provisions of section 7(5) and (6) of the Principal Act with respect to determining whether shares are held in a body corporate and with respect to reckoning the amount of voting rights held apply, with any necessary modifications, in determining for the purpose of this paragraph whether an undertaking holds 20 per cent or more of the voting rights in another undertaking.

25.

(1) The interest of an undertaking consolidated in the group financial statements in an associated undertaking, and the amount of profit or loss attributable to such an interest, shall be shown in the group financial statements by way of the equity method of accounting including dealing with any goodwill arising in accordance with paragraphs 23 to 25 and paragraph 27 of Schedule 1.

(2) Where the associated undertaking is itself a holding undertaking, the net assets and profits or losses to be taken into account are those of the holding and its subsidiary undertakings (after making any consolidation adjustments).

(3) The equity method of accounting need not be applied if the amounts in question are not material for the purpose of giving a true and fair view.

Participating interest

26.

(1) In paragraph 24 and this paragraph “participating interest” means an interest held by one undertaking in the equity shares of another undertaking which it holds on a long term basis for the purpose of securing a contribution to that undertaking’s own activities by the exercise of control or influence arising from or related to that interest.

(2) The reference in subparagraph (1) to an interest in equity shares includes—

(a) an interest which is convertible into an interest in equity shares; and

(b) an option to acquire equity shares or any such interest,

and an interest or option falls within clause (a) or (b) notwithstanding that the equity shares to which it relates are, until the conversion or the exercise of the option, unissued.

(3) The percentage of interest in equity shares held in an undertaking with share capital shall be the percentage that the nominal value of the shares held represents of the nominal value of the allotted share capital of that undertaking.

(4) Where an undertaking holds an interest in equity shares and such an interest represents 20 per cent or more of all such interests in the other undertaking it shall be presumed to hold that interest on the basis and for the purpose mentioned in subparagraph (1) unless the contrary is shown.

(5) For the purpose of this paragraph an interest held on behalf of an undertaking shall be treated as held by it.

(6) For the purpose of this paragraph as it applies in relation to "participating interest" in section 7 of the Principal Act—

(a) there shall be attributed to an undertaking any interests held by any of its subsidiary undertakings, and

(b) the references in subparagraph (1) of this paragraph to the purpose and activities of an undertaking include the purpose and activities of any of its subsidiary undertakings and of the group as a whole.

(7) In the balance sheet and profit and loss formats set out in Part II of Schedule 1, “participating interest” does not include an interest in a group undertaking.

PART IV INFORMATION REQUIRED BY WAY OF NOTES TO GROUP FINANCIAL STATEMENTS

27.

Without prejudice to paragraph 2, the notes to the group financial statements shall, in addition to providing the information required by Schedule 1, also state the information required by paragraphs 28 to 33.

28.

Where sums originally denominated in currencies, other than the currency in which the group financial statements are presented, have been brought into account under any items shown in the balance sheet or profit and loss account, the basis on which those sums have been translated into the currency in which the group financial statements are presented shall be stated.

29.

In respect of the aggregate of the amounts shown in the group balance sheet under the heading “Creditors” there shall be stated the information required by paragraph 77 of Schedule 1 as if references in that paragraph to an undertaking were to the undertaking and its subsidiary undertakings taken as a whole.

30.

In relation to each joint venture proportionately consolidated, there shall be stated the nature of the joint management arrangement and the factors on which the joint management of the undertaking is based.

31.

(1) In relation to the resulting amounts referred to in paragraphs 17(7), (8) and 19(6), there shall be stated in the notes to the group financial statements the methods used in calculating those amounts and the reasons for any significant difference between such amounts for the financial year to which the group financial statements refer and those for the preceding financial year.

(2) In relation to acquisitions taking place in the financial year, there shall be stated in the notes to the group financial statements—

(a) the name and registered office of the acquired undertaking, or where a group was acquired, the name and registered office of the holding undertaking of that group; and

(b) whether the acquisition has been accounted for by the acquisition method or the merger method of accounting.

32.

The information set out in section 314 of the Principal Act shall also be given in respect of each undertaking which has been excluded from the group accounts by virtue of the application of section 303 of the Principal Act.

33.

(1)Paragraph 89 (related party transactions) of Schedule 1 shall, in the case of group financial statements, apply to all transactions entered into by the holding undertaking, or any subsidiary undertaking included in the consolidation, with related parties, being transactions of the kind referred to in that paragraph but not being intra-group transactions.

(2) A word or expression that is used in subparagraph (1) has the same meaning as it has in Directive 2006/46/EC.

Given under my Official Seal,

17 June 2015.

MICHAEL NOONAN,

Minister for Finance.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation)

These Regulations revoke the European Communities (Insurance Undertakings: Accounts) Regulations, 1996 ( S.I. No. 23 of 1996 ) and may be cited as the European Communities (Insurance Undertakings: Financial Statements) Regulations 2015.

These Regulations provide that a similar structure to Part 6 of the Companies Act 2014 will be adopted in respect of accounting requirements for insurance undertakings.

These Regulations require insurance undertakings to prepare and to publish annually accounts (balance sheet, profit and loss account and notes), in accordance with the provisions of these Regulations. They also require (with provision for exceptions) insurance undertakings which have subsidiary undertakings or non-insurance holding companies, the most important of whose subsidiaries are insurance undertakings, to prepare and to publish group accounts in accordance with the provisions of these Regulations.

The Regulations contain provisions governing the preparation of accounts, including group accounts, the content of those accounts, their format and the valuation of items to be included. They specify information to be included in the notes to the accounts.

Footnotes

OJ No. L 374, 31.12.1991, p. 7

__2 OJ No. L 320, 29.11.2008, p. 1

__3 OJ No. L 224, 16.08.2006, p. 1

_______4 OJ L 335, 17.12.2009, p. 1

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