- Monitoring whether the accounts of certain classes of companies and other undertakings comply with the Companies Acts;
Co-operating in the development of accounting standards and practice notes;
Assisting the Board of IAASA to discharge its functions as advisor to the Minister on accounting and related matters ;
Liaising with other countries’ financial reporting monitoring bodies and developing contacts with those bodies.
Department of Enterprise Trade and Employment (DETE) and the European Union (EU)
Various laws relating to accounting standards including prescribing which accounting standards should be used by the different categories of companies, the format of those accounts, and other accounting related EU regulations that are transposed into Irish law by the DETE.
(a) there is a high degree of outside interest in the entity from non- management investors or other stakeholders, and those stakeholders depend primarily on external financial reporting as their means of obtaining financial information about the entity; or
(b) the entity has an essential public service responsibility because of the nature of its operations.”
How to put this definition into operation still to be determined.
The financial reporting supervision constituency comprises:
all plcs (whether listed or not);
all subsidiary undertakings of plcs;
all private companies limited by shares that, in both in the relevant financial year and the immediately preceding financial year, satisfy the following criteria:
balance sheet total exceeds €25m; and
turnover exceeds €50m.
all private companies limited by shares which, when aggregated with their subsidiary undertakings, exceed the aforementioned thresholds;
all subsidiary undertakings of the preceding class of private companies; and
certain other undertakings, and where applicable their subsidiary undertakings, that satisfy the aforementioned criteria, including unlimited companies and partnerships whose members having unlimited liability are themselves limited companies.
Requires EU Member States to take appropriate measures to ensure compliance with IFRS (applies to listed entities – consolidated a/c’s only);
Recital no.16 of the Regulation -
“ A proper and rigorous enforcement regime is key to underpinning investors' confidence in financial markets. Member States, by virtue of Article 10 of the Treaty, are required to take appropriate measures to ensure compliance with international accounting standards. The Commission intends to liaise with Member States, notably through the Committee of European Securities Regulators (CESR), to develop a common approach to enforcement .”
Current proposals are for 3 primary “financial statements” -
Financing Cash Flows Equity Non-equity Financing Expenses Financing Equity Financing Liabilities Business Operating Cash Flows Treasury Cash Flows Business Operating Income Treasury Income Business Operating Assets and Liabilities Treasury Assets Statement of Cash Flows Statement of Earnings and Comprehensive Income Statement of Financial Position
Joint IASB/FASB ED issued 30 June 2005 proposing major changes to acquisition accounting. For example e.g.
If acquirer purchases less than 100 % recognise assets and liabilities at the full amount of their fair values and goodwill as the difference between the fair value of the acquiree, as a whole, and the fair value of assets acquired and liabilities assumed.
the acquirer to account for acquisition-related costs incurred in connection with the business combination separately from the business combination (generally as expenses).