Financial reporting brief July 2009 - special update
Companies (Amendment) Act 2009
The July 2009 regular edition of Financial Reporting Brief highlighted that the Companies (Amendment) Act 2009 was due to reach the statute book shortly after we went to press. In the event the Act was signed into law on July 12 and has immediate effect.
The Act changes company law for all companies in three areas:
- Director’s loans
- Directors not resident in Ireland
- Powers of the Office of Director of Corporate Enforcement (ODCE).
It also includes additional provisions in respect of directors’ loans in a licensed bank or the holding company of a licensed bank.
For an overview of the key provisions, please see the summary below.
IFRS for SMEs
Since we reported on the anticipated new standard for Small and Medium Sized Enterprises in the July Financial Reporting Brief, the IASB have published the final document. The IFRS for SME project is a major development in the implementation of IFRS globally for all entities, not just limited companies. IFRS for SMEs recognises that users of financial statements of SMEs do not require the same level of sophistication as that demanded of listed entities.
Accordingly, IFRS for SMEs when compared with full IFRS has:
- Recognition and measurement simplifications
- Simpler accounting policy options
- Exclusion of certain topics including hyper-inflation, equity-settled share-based payment, agriculture, interim financial reporting, lessor accounting for finance leases, earnings per share, segment reporting and insurance
- Decisions on which entities are required or permitted to use IFRS for SMEs rest with legislative and regulatory authorities and standard-setters in individual jurisdictions.
The Accounting Standards Board, which publishes the accounting standards forming generally accepted accounting practice in both the UK and Ireland, with the addition of company law requirements, is expected to propose a three tier reporting structure when it issues its consultation paper on the matter later this month:
- Full IFRS for entities which are deemed to have public accountability (Tier 1)
- IFRS for SMEs for the middle tier (Tier 2)
- The Accounting Standards Board's Financial Reporting Standard for Small Entities (FRSSE) for the smallest tier (Tier 3)
Find out more, download the full report below.