An EU regulation requiring listed companies to prepare financial statements in accordance with International Financial Reporting Standards (IFRS) should be extended to all companies, subject to certain transitional arrangements, according to the country’s largest accountancy body, the Institute of Chartered Accountants in Ireland (ICAI).
In a submission to the Tanaiste and Minister for Enterprise, Trade and Employment, the ICAI argue that the regulation, which will require all listed companies in the EU to prepare their consolidated financial statements in accordance with IFRS from 2005, should apply to all companies subject to an optional two or three year transitional period for some of the companies that would not otherwise have been directly affected by the Directive.
Under the Regulation, member states have an option to extend this requirement and either permit or require other companies to also adopt IFRS in the preparation of their financial statements.
During the transitional period, non-listed companies would have the option of preparing their financial statements under either IFRS or under the current UK/Ireland Accounting Standards board (ASB) standards. |
