Statutory Rule 1997 No. 500

Companies (1986 Order) (Audit Exemption) (Amendment) Regulations (Northern Ireland) 1997

---

© Crown Copyright 1997

Statutory Rules of Northern Ireland printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Government Printer for Northern Ireland.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Rules of Northern Ireland does not extend to the Government Printer for Northern Ireland imprints which should be removed from any copies of the Statutory Rule which are issued or made available to the public. This includes reproduction of the Statutory Rule on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Rule which is published by the Government Printer for Northern Ireland has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the Companies (1986 Order) (Audit Exemption) (Amendment) Regulations (Northern Ireland) 1997, ISBN 0337927340. The print version may be purchased by clicking here. Braille copies of this Statutory Rule can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1997 No. 500

COMPANIES

Companies (1986 Order) (Audit Exemption) (Amendment) Regulations (Northern Ireland) 1997

The Department of Economic Development, in exercise of the powers conferred on it by Article 265 of the Companies (Northern Ireland) Order 1986^[1] and of every other power enabling it in that behalf, hereby makes the following Regulations:

Citation, commencement and interpretation
    1.—(1)  These Regulations may be cited as the Companies (1986 Order) (Audit Exemption) (Amendment) Regulations (Northern Ireland) 1997 and shall come into operation on 22nd December 1997.

    (2)  These Regulations apply to the annual accounts of any company for any financial year ending on or after 22nd February 1998.

    (3)  In these Regulations, "the 1986 Order" means the Companies (Northern Ireland) Order 1986.

Amendment of Article 257A
    2.—(1)  Article 257A of the 1986 Order (exemptions from audit for certain categories of small company)^[2] is amended as follows.

    (2)  In paragraph (2), for the words "a company", substitute the words "a company which is a charity and".

    (3)  In paragraph (3)(b) for "£90,000" substitute "£350,000".

    (4)  After paragraph (3) insert the following paragraph—
"  (3A)  In relation to any company which is a charity, paragraph (3)(b) shall have effect with the substitution—
(a) for the reference to turnover of a reference to gross income, and

(b) for the reference to £350,000 of a reference to £90,000." .



    (5)  In paragraph (4)—
 (a) for the words "a company" substitute the words "a company which is a charity", and
 (b) in paragraph (b)—
 (i) for the word "turnover" substitute the words "gross income", and
 (ii) for "£350,000" substitute "£250,000".

    (6)  Paragraph (5) is hereby repealed.

    (7)  After paragraph (6) insert the following paragraph—
"  (6A)  A company is entitled to the exemption conferred by paragraph (1) or (2) notwithstanding that it falls within sub-paragraph (a) or (b) of Article 258(1)." .

Amendment of Article 257B
    3.—(1)  Article 257B of the 1986 Order (cases where exemption from audit not available)^[3] is amended as follows.

    (2)  In paragraph (1), for "paragraph (1A)" substitute "paragraphs (1A) to (1C)".

    (3)  After paragraph (1A) insert the following paragraphs—
"(1B) A company which, apart from this paragraph, would fall within paragraph (1)(f) by virtue of its being a parent company or a subsidiary undertaking for any period within a financial year, shall not be treated as so falling if throughout that period it was a member of a group meeting the conditions set out in paragraph (1C).

    (1C)  The conditions referred to in paragraph (1B) are—
(a) that the group qualifies as a small group, in relation to the financial year within which the period falls, for the purposes of Article 257 and is not, and was not at any time within that year, an ineligible group within the meaning of Article 256(2).

(b) that the group's aggregate turnover in that year (calculated in accordance with Article 257) is not more than £350,000 net (or £420,000 gross), and

(c) that the group's aggregate balance sheet total for that year (calculated in accordance with Article 257) is not more than £1·4 million net (or £1·68 million gross)." .

Amendment of Article 257D
    4.    In Article 257D of the 1986 Order (definition of reporting accountant)^[4] in sub-paragraph (d) of paragraph (3), for "the Chartered Association of Certified Accountants," substitute "the Association of Chartered Certified Accountants,".

Sealed with the Official Seal of the Department of Economic Development on


A. L. Brown

Assistant Secretary

17th November 1997.

    1.    These Regulations further amend provisions in Part VIII of the Companies (Northern Ireland) Order 1986 ("the 1986 Order") concerning the exemption of certain small companies from the requirement to have their annual accounts audited. The amendments apply to annual accounts for financial years ending on or after 22nd February 1998.

    2.    Regulation 2(3) increases the turnover limit in Article 257A(3)(b) of the 1986 Order which a small company other than a small charitable company must not exceed in respect of a financial year if it is to be exempt from audit from £90,000 to £350,000 (for small charitable companies the gross income limit will remain at £90,000 —see regulation 2(4)). As a consequence of this increase, the requirement that small companies falling within Article 257A(2) obtain a report from a reporting accountant is repealed except in the case of small charitable companies.

    3.    Regulation 2(7) inserts a new paragraph (6A) into Article 257A of the 1986 Order to make clear that companies which are dormant and which fall within sub-paragraph (a) or (b) of Article 258(1) of the 1986 Order may claim exemption from audit under either Article 257A or Article 258.

    4.    Regulation 3(2) and (3) amends Article 257B of the 1986 Order. The amendments enable a company which would otherwise be disqualified from claiming exemption from audit under Article 257A for a financial year because it was a parent company or subsidiary undertaking for any period in that year, to claim the exemption, provided that the group of which it was a member was a small group satisfying the conditions specified in new Article 257B(1C).

    5.    Regulation 4 amends Article 257D(3)(d) of the 1986 Order as a consequence of the Chartered Association of Certified Accountants having changed its name to the Association of Chartered Certified Accountants.

[1] S.I. 1986/1032 (N.I. 6); Article 265 was inserted into the 1986 Order by Article 22 of the Companies (Northern Ireland) Order 1990 (S.I. 1990/593 (N.I. 5)) in place of an existing Article of that number back

[2] Article 257A was inserted into the 1986 Order by regulation 2 of S.R. 1995 No. 128 back

[3] Article 257B was inserted into the 1986 Order by regulation 2 of S.R. 1995 No. 128, and amended by regulation 9 of S.R. 1997 No. 314 back

[4] Article 257D was inserted into the 1986 Order by regulation 2 of S.R. 1995 No. 128 back