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Accounting Standards Board publishes tentative decisions regarding the future of Irish GAAP

17/06/2011

Friday, 17th June, 2011: The Accounting Standards Board (‘ASB’) has today published the outcome of its meeting of 16 June, 2011, at which the following tentative decisions were made:
 
  1. To remove from Financial Reporting Exposure Drafts (FREDs) 43 & 44 the previously proposed requirement for ‘publicly accountable entities’ to prepare their financial statements in accordance with EU-adopted IFRS. As a consequence, under the ASB’s revised proposals the requirement to prepare financial statements in accordance with EU-adopted IFRS will not be extended beyond the current requirements in EU law;
  2. To change the principles for amending the IFRS for SMEs to permit or require accounting options that exist in current UK & Republic of Ireland Financial Reporting Standards at the transition date that align with EU-adopted IFRS; and
  3. To defer the proposed effective date to 1 January, 2014.
 
The ASB deferred a decision on whether to introduce the proposed reduced disclosure framework set out in FRED 43. The ASB requested that its staff undertake further work on the proposals in light of its decision to change the principles for amending the IFRS for SMEs.
 
The ASB agreed to consider at its next meeting:
  1. Any further changes that would be required to FRED 44 given its expanded scope following its decision above; this might include increased disclosures for financial institutions and publically held companies;
  2. The role of Statements of Recommended Practice (SORPs);
  3. Initial findings in relation to the ASB’s proposals and UK company law; and
  4. How its tentative decisions would affect its draft impact assessment.
The tentative decisions outlined above would have significant implications for a number of categories of Irish entities including Credit Unions, certain Irish funds or issuers of debt having listed securities, which, under the ASB’s revised proposals, would be eligible to apply the Financial Reporting Standard for Medium-sized Entities (‘FRSME’) as opposed to full IFRS as was originally proposed.
 
Pursuant to its statutory function of co-operating in the development of accounting standards, IAASA has observer status at ASB meetings.
 
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