Revised accounting standard to bring clarity for Irish companies - Deloitte
A proposed new standard for non-listed Irish and UK entities has been published by the Accounting Standards Boards (ASB) today.
The proposed standard is a comprehensive replacement of current Irish GAAP with a single standard for those currently within its scope, with a very substantial reduction in volume. In addition, the ASB proposes reduced disclosure regimes for qualifying subsidiaries of parents that report under full IFRSs or Irish GAAP. While moving towards international standards (IFRS), the standard proposes retaining many of the accounting options currently available under Irish GAAP. The FRSSE, a framework which may be adopted by smaller Irish entities, would continue to be available.
Glenn Gillard, Accounting Technical Partner at Deloitte, commented: "Today’s announcement represents a pragmatic, common-sense approach towards providing Irish companies with an improved, cohesive financial reporting platform. The new standard may potentially have broader consequences for Irish companies in such areas as tax, banking arrangements, systems and performance management. Deloitte Ireland supports the proposed new regime with any improvement in financial reporting being of even greater importance in today’s markets, both domestic and overseas.”
The main changes from the previous draft standard, published in October 2010, include restricting the requirement to adopt full IFRS to listed Irish companies preparing group accounts and retaining accounting options currently available under Irish GAAP. The proposals are open for comment until 30 April 2012.
“This is a positive step towards a stronger, more cohesive accounting regime and company directors and management should use the time well to become familiar with it and be prepared for its implementation. While proposed mandatory implementation is in 2015, companies may adopt as early as 2013 and companies should start thinking about it now,” said Gillard.
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