Poll: Should businesses be made to disclose more financial details?
A new bill could see Irish unlimited companies forced to file public accounts.
IT HAS EMERGED that a new bill in the works could force Irish companies to disclose more financial information for public scrutiny.
If it is signed into effect, the Companies Accounting Bill 2016 will supersede existing regulation from the EU and force Irish companies to change the manner in which they file accounts.
In Ireland, businesses are able to register as unlimited companies and keep their financial records private, unlike limited companies that are are required to publish annual public accounts.
Although there are disadvantages to choosing an unlimited structure for a company, such as leaving the owner liable to pay outstanding debts if the business goes belly up, it does allow a company to shield financial details from its competition and the public.
Under the new rules, if there are any limited companies in a group’s ownership structure, an unlimited company will have to file public accounts. If the new bill is passed, multinationals channeling funds through Ireland could also be forced to reveal details about their financial dealings.
Many businesses would argue they are entitled to a certain level of privacy and any changes made to account filing regulations would harm their commercial competitiveness.
So with all that in mind, we’re asking readers: Do you think businesses should be made to disclose more financial details?
