IAASA, Ireland’s accounting enforcer, has today published its annual Observations paper highlighting matters that management, Audit Committees and auditors should consider when preparing, approving and auditing financial statements for 2023 year end dates.
The paper notes that 2023 financial statements will be prepared against continued uncertainty in the economic outlook such as:
- easing growth momentum amid declining inflation and a robust labour market,
- inflation with domestic price increases at their highest level in 38 years,
- that high inflation has led to tighter monetary policies, and
- uncertainty affecting all businesses.
The Observations paper highlights some key areas that warrant scrutiny by those preparing, approving and auditing 2023 financial statements. Areas highlighted in IAASA’s paper which warrant consideration by management, Audit Committees and auditors in the 2023 reporting season are:
- Macro-economic impacts
- Financial instruments – IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial Instruments,
- Fair value measurement and disclosures,
- IFRS 8 Operating Segments,
- Transparency Directive Regulations,
- Alternative performance measures (APMs),
- IAS 36 Impairment of Assets,
- European single electronic format (ESEF), and
- Amendments to IFRSs
The 2023 Observations paper may be accessed here.