Changing your GAAP
Planning your conversion to the new Irish reporting regime
A high level summary of the main features of the standards, addressing some of the more frequent questions that may arise.
The wait is over; the Irish financial reporting landscape is changing. With little time to go until companies are preparing financial statements under a new GAAP for the first time in years, if your business is not already planning for the conversion process, that planning needs to start now. Under the new regime all entities and groups that are not already required to use IFRSs will be affected by the new Irish financial reporting standards to some degree.
The full panoply of International Financial Reporting Standards (IFRSs) covers over 3,000 pages. Currently Irish GAAP is just short of 2,500 pages. The main new Irish financial reporting standard, FRS 102, comes in at under 360 and offers a comprehensive and compact replacement for old Irish GAAP. What’s more, the new IFRS reduced disclosure framework available under FRS 101 has already proven popular for entities within IFRS groups.
These developments have far reaching implications for nearly all Irish reporters who will need to consider how the change will impact their financial statements and the wider business considerations of change, including tax, distributable profits, banking arrangements, systems and performance management. Done correctly and at the right time, these changes could streamline group accounting and tax processes for the long term.
The new Irish reporting standards are effective for periods beginning on or after 1 January 2015, meaning that for most, the date of transition – also known as the ‘opening balance sheet date’ – has passed. Many Irish entities may already have chosen their new financial reporting framework, but for those who have not, the time to do so is now. This guide provides a route map through the practical issues of who can and should do what, and when, and runs through some of the questions that are arising in practice.