Financial reporting – an improved framework for Irish companies
8 March 2013 - The approval of a new accounting standard (FRS102) by the Financial Reporting Committee (FRC) is a major step forward to a unified and comprehensive financial reporting framework for the majority of Irish companies.
Glenn Gillard, Accounting Technical Partner at Deloitte, commented:
“The new regime is a very positive move for Irish companies. While retaining some of the more valued fundamentals of current GAAP such as presentation and availability of accounting options, it fully replaces the current unwieldy patchwork that is Irish GAAP. The new standard is a single, short and comprehensive standard which will bring about a much-desired simplification overall and have everybody talking basically the same accounting language as it is firmly based on IFRS. This is more good news, following changes made late last year to make available a reduced disclosure framework from 2012 onwards to group companies using IFRS. Irish entities should be mindful that change will affect not only the financial statements but may also impact business areas such as tax, banking arrangements, systems and resources, and performance management.”
The new standard will affect nearly all Irish companies to some degree and businesses need to start thinking about the choices available to them. The standard is mandatory for periods beginning on or after 1 January 2015. This means that some actions will be required well ahead of time with a transition date which could be as early as 1 January 2014. Companies will also have the option to adopt earlier.