The UK Accounting Standards Board (ASB)'s January 2012 proposals represent a key milestone in the overhaul of financial reporting in the Republic of Ireland and the UK. The EU's IAS Regulation which saw listed groups in the EU transition to IFRS in 2005 overhauled financial reporting for those entities affected. The ASB's proposals envisage a similar financial reporting overhaul ten years later for all other entities which would see them transition to a new financial reporting framework by financial years commencing on or after 1 January 2015.
The proposals advocate replacing extant Irish and UK GAAP accounting standards with a single accounting standard (The Financial Reporting Standard applicable in the UK and Republic of Ireland), which is largely based on the International Accounting Standards Board (IASB)'s IFRS for SMEs. By adapting the IFRS for SMEs to form the basis for new the UK and Irish GAAP, the UK and Republic of Ireland will operate under one consistent, international accounting framework. IFRS for listed groups and a choice of IFRS or and IFRS based financial reporting framework for all other entities.
The ASB has also introduced a reduced disclosure framework for 'qualifying entities' which recognises that it is cost effective for a group to maintain accounting records using consistent accounting policies, but that the disclosure requirements in IFRS give rise to reporting costs that may not be balanced by benefits to the users of the financial statements.
PwC can help you prepare for IFRS with the following services: