• National Professional Organisation Website: Institute of Certified Public Accountants in Ireland
• National Professional Organisation Website: Ireland - Institute of Chartered Accountants in Ireland
• Response to IFAC Member Body Survey on Standard Setting and Regulation

Update for August 2010
Update for February 2010
Update for November 2009
Update for March 2005

Adoption of IFRSs in Europe Effective in 2005

In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to:

• Require or permit IFRSs for unlisted companies.
• Require or permit IFRSs in parent company (unconsolidated) financial statements.
• Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007.
• Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007.

The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) – Iceland, Liechtenstein, and Norway.

Ireland is an EU Member State. Consequently, Irish companies listed in an EU/EEA securities market follow IFRSs since 2005. In July 2010, the European Commission published the results of a survey of the 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to download:

• Table on Use of IFRS Options in 30 EU Member and EEA States (PDF 64k)

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'):

• "in accordance with International Financial Reporting Standards as adopted by the EU" or
• "in accordance with IFRSs as adopted by the EU".

Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case.

Deloitte Ireland publishes quartely Financial reporting briefs and monthly Audit articles. Click here to access these Deloitte publications: Audit hot topics.

Irish edition of IFRS for SMEs in your pocket

Deloitte (Ireland) has published an Irish edition of IFRS for SMES in your pocket (PDF 276k). This publication provides a section-by-section guide on the IFRS for SMEs, providing key comparisons with the full IFRS standards and highlighting particular conversion issues for entities moving from Irish GAAP. Irish GAAP is developed by the Accounting Standards Board (ASB), which is currently considering proposals to replace Irish GAAP with the IFRS for SMEs for many non-publicly accountable entities.

Irish CAs support IFRS for SMEs in place of FRSs

Chartered Accountants Ireland has announced its support for changes in accounting standards proposed by the Accounting Standards Board (ASB) that would see Irish and UK GAAP replaced by a three-tiered approach, whereby companies would apply one of the following:

• EU-endorsed IFRSs - for 'publicly accountable' entities
• IFRS for SMEs - for non-publicly accountable entities
• Financial Reporting Standard for Smaller Entities (FRSSE) – optional for 'small' entities as defined in the Companies Acts

Moving to the IFRS for SMEs in Ireland

Since 2005, listed groups in Ireland have been required to prepare their consolidated financial statements using IFRSs. Almost all other groups have a choice. They can use IFRSs, Irish GAAP as developed by the Accounting Standards Board (ASB), and if they are small they have a further option of using the Financial Reporting Standard for Smaller Entities (FRSSE). But from 2012, the options are expected to change. Irish GAAP is expected to be replaced with the IFRS for Small and Medium-sized Entities. Deloitte (Ireland) has published Choosing Your GAAP: Planning for the Proposed Removal of Irish GAAP (PDF 4,132k) explaining the ASB's plan. The publication examines the choices, explains the key areas of accounting and tax impact, and provides guidance on planning for the change. The entities directly affected by these plans include: Companies which are listed and have not adopted IFRS in their individual financial statements Subsidiares in listed groups that have not adopted IFRS throughout the group All public limited companies that are not publicly accountable All private groups and companies Where consolidated accounts are prepared using IFRS, company law allows a choice of using Irish GAAP or IFRS for the company's individual financial statements. Deloitte research shows that many listed companies still use Irish GAAP in their parent company only accounts and thus use Irish GAAP for their Irish subsidiaries. Many others use IFRS for the parent company only accounts but continue to use Irish GAAP for subsidiaries.

Ireland Extends IFRSs to All Companies

The Irish government has passed legislation that permits all companies in Ireland to use IFRSs in both their consolidated financial statements and their separate company financial statements. Click to download Statutory Instrument No. 116 (PDF 997k), which is the enabling legislation.