Ireland

Financial Reporting Framework in Ireland

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:

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.

In September 2011, the European Commission services published a report an update on the extent to which certain options included within the Accounting Directives have been incorporated into the law of the Member States and EEA countries. Please click for access to the report (PDF 816k, link to EC website).

Regular IFRS publications from Deloitte Ireland

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

Related news

  • FEE publishes survey on the accountancy profession in Europe

  • Mar 29, 2012

  • The Federation of European Accountants (Fédération des Experts-comptables Européens, FEE) has released a survey which provides a collection of key features on structure and organisation of the accountancy profession across 30 European countries.

  • UK ASB tentatively revises forthcoming differential reporting framework

  • Jun 28, 2011

  • As part of its ongoing redeliberations, the UK Accounting Standards Board (ASB) has tentatively agreed to a number of amendments to its proposed revised differential reporting framework, to reduce its impacts on certain entities and extend its proposed application date.

  • UK pensions industry disapproves of IFRSs

  • Jun 09, 2011

  • On 29 October 2010, the UK Accounting Standards Board (ASB) published its proposals for the future of financial reporting in the UK and Republic of Ireland.

  • ASB publishes case studies

  • Apr 08, 2011

  • The staff of the UK Accounting Standards Board (ASB) has prepared case studies that are designed to help constituents assess the effect of the proposals for the future of financial reporting in the UK and Republic of Ireland published in October 2010.

  • Irish CAs support IFRS for SMEs in place of FRSs

  • Feb 17, 2010

  • 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:

  • Guidance for auditing first-time adoption of IFRSs

  • May 10, 2005

  • The United Kingdom Auditing Practices Board (APB) has published Draft Bulletin 2005/3 setting out further interim guidance for auditors on first-time application of IFRSs in the United Kingdom and the Republic of Ireland.

  • Ireland extends IFRSs to all companies

  • Mar 15, 2005

  • 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.

  • Ireland will allow all unlisted companies to use IFRSs

  • May 23, 2004

  • The government of the Republic of Ireland has announced that all unlisted entities in Ireland will be permitted to follow International Financial Reporting Standards starting in 2005. Irish listed companies are already required to switch to IFRSs in 2005 under the European Union accounting regulation.

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