Deloitte launches ‘Choosing Your GAAP’ guide

Deloitte, the business advisory firm, has today launched its ‘Choosing your GAAP’ guide. The guide is an overall summary of some of the more significant accounting changes that will arise from the transition from Irish GAAP to IFRS for SMEs together with the associated tax consequences. It also raises questions as to whether moving to a new accounting regime will impact on other areas of the business including systems, internal reporting and banking covenants among others.

The guide is in response to the recent proposals published by the Accounting Standards Board (ASB), which recommended abolishing standards set by the Board for Ireland and the UK and adopting international accounting standards. The ASB’s “Policy Proposal: The Future of UK GAAP”, proposes that from 2012 almost everyone preparing statutory accounts in Ireland and the UK use International Financial Reporting Standards (IFRS) of one sort or another.

Under the new proposals, publicly accountable entities such as listed companies and banks would use the current full suite of IFRS without any amendment. Everyone else, other than very small companies, will use a scaled down version of IFRS known as IFRS for SMEs which was published on 9 July 2009.

Glenn Gillard, Accounting Technical Partner at Deloitte, commented: “Transition to IFRS for SMEs will be a significant change for many private companies in Ireland and the scale of potential change should not be underestimated. It calls for early consideration and planning by those responsible for managing these companies. We believe that this guide will be a useful reference point for companies as they engage in this planning process.”

The guide was launched today at the Deloitte Annual Financial Reporting Seminar, held in the Shelbourne Hotel. The seminar addressed how finance directors and their teams can tackle the significant challenge of implementing the wave of new and amended standards at a time when difficult economic conditions are also raising accounting questions for many organisations. The keynote speaker at the event was Stig Enevoldsen, Chairman of the European Financial Reporting Advisory Group (EFRAG), and a partner in Deloitte Denmark. A key function of EFRAG is to make its recommendations to the European Commission on whether standards and interpretations issued by the International Accounting Standards Board (IASB) are suitable to be endorsed for use by listed companies registered in EU member states. Stig was joined by a panel of accounting experts from the Irish firm.

Ends

Deloitte Profile

Deloitte’s 1,100 people in Dublin, Cork and Limerick provide audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in 145 locations, Deloitte brings world class capabilities and deep local expertise to help clients succeed wherever they operate.

Deloitte's 165,000 professionals are committed to becoming the standard of excellence.

Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from diversity. They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility, building public trust, and making a positive impact in their communities.

Legal

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its Member Firms.

These materials and the information contained herein are provided by Deloitte & Touche and are intended to provide general information on a particular subject or subjects and are not an exhaustive treatment of such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. These materials and the information contained therein are provided as is, and Deloitte & Touche makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, Deloitte & Touche does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality. Deloitte & Touche expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.

Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk of loss resulting from the use thereof. Deloitte & Touche will not be liable for any special, indirect, incidental, consequential or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence) or otherwise, relating to the use of these materials or the information contained therein.

Last Updated: