Companies Act 2014 section 297

Exemption from consolidation: size of group

Section 297 provides an exemption from the requirement to prepare consolidated (group) financial statements where the group is sufficiently small, subject to certain conditions and exclusions.

• A holding company preparing Companies Act (non-IFRS) group financial statements may claim exemption from consolidation if the group meets at least two of three size tests in both the current and preceding financial year: balance sheet total not exceeding €10 million, turnover not exceeding €20 million, and average employees not exceeding 250.
• Balance sheet total means aggregate gross assets; turnover means the amount shown in the profit and loss account; and average employee numbers are calculated in accordance with section 317 of the Act.
• Where a financial year is shorter or longer than 12 months, the turnover threshold must be adjusted proportionately.
• The exemption is not available if any subsidiary has securities traded on a regulated market in the EEA, or if any subsidiary is a credit institution or an insurance undertaking.