Legal amendment allows for enhanced transparency – IAASA publishes Policy Paper
IAASA has today published its final Policy Paper on Publication of Financial Reporting Enforcement Findings (‘Policy Paper’). This Policy Paper provides for enhanced transparency by IAASA in publicising its financial reporting enforcement findings consequent to a change in the law.
Regulations amended by the Minister for Jobs Enterprise & Innovation, Richard Bruton TD, on 9 February 2015 allow for greater transparency by IAASA in reporting its financial reporting enforcement findings.
IAASA sought the views of stakeholders and invited interested parties to provide their comments on the proposed Policy Paper which was issued for consultation on 22 May 2015. Comment letters were received from four respondents to that consultation invitation: ACCA Ireland, Bank of Ireland, Grant Thornton and the Irish Debt Securities Association.
The Policy Paper reflects, to the extent deemed appropriate, the comments received from those respondents. The more significant amendments and clarifications included in this Policy Paper are:
- clarification that the Policy applies only to those entities falling within IAASA’s financial statement review remit under the Transparency (Directive 2004/109/EC) Regulations 2007 (as amended);
- a re-wording of certain parts of Section 3 which deals with IAASA’s announcing that an examination is underway prior to IAASA reaching a conclusion on the matter. The revised wording clarifies that such prior announcement is restricted to instances such as:
- thematic examinations where IAASA may announce the subject matter and the issuers selected for inclusion in advance of that examination being undertaken and in advance of any findings being made; and
- the examination of aspects of a specific issuer’s financial report in response to public concerns.
It is IAASA’s intention to periodically review the Policy and may amend the Policy based on experience gained from the publication of its financial reporting enforcement findings and to ensure an appropriate level of transparency with regard to its financial reporting examination activity.