Companies Act 2014 section 994

Application of sections 297, 350 and 362 to a DAC

Section 994 deals with how certain rules on group consolidation exemptions, company size classifications, and audit exemption restrictions apply to designated activity companies (DACs).

• The exemption from preparing consolidated (group) financial statements based on group size thresholds (section 297) applies to DACs.
• The rules for qualifying as a small or medium company (section 350) apply to DACs, determining what reporting concessions are available.
• The restrictions on audit exemption for companies falling within certain categories (section 362) apply to DACs.
• A DAC cannot avail of the audit exemption if it falls within any category listed in Schedule 5 — for example, if it is an authorised market operator.