The future of Irish GAAP

FRS 100, FRS 101 and FRS 102
In late 2012 and early 2013 the Financial Reporting Council (“FRC”) issued three new UK and Republic of Ireland financial reporting standards (“FRS”):

  • FRS 100, “Application of financial reporting requirements”.
  • FRS 101, “Reduced disclosure framework”.
  • FRS 102, “The financial reporting standard applicable in the UK and Republic of Ireland”.

Overhaul
The issue of these three FRSs represent a significant achievement by the FRC in overhauling financial reporting in the Republic of Ireland and the UK. The EU’s IAS Regulation saw listed groups in the EU transition to IFRS in 2005. These three FRSs mean that, ten years on from the introduction of IFRS to the UK and Ireland, a similar financial reporting overhaul will see all other entities transitioning to a new financial reporting framework by financial years commencing on or after 1 January 2015.

FRS 102 - New Irish and UK GAAP
FRS 102 replaces extant Irish and UK GAAP with a single accounting standard – FRS 102. FRS 102 is largely based on the International Accounting Standards Board’s (IASB’s) IFRS for SMEs. However, the FRC has adapted the IFRS for SMEs for use in the UK and Republic of Ireland and introduced a number of accounting options that will be familiar to Irish and UK GAAP users.

FRS 101 – Reduced disclosure framework
The FRC 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 user of full IFRS financial statements.

Early planning
Early planning will be critical to a smooth transition. Management teams need to take time now to understand the potential financial reporting and wider business impact of this impending change on their business. From technical accounting advice and transition management to providing systems advice, secondment support and training workshops we're here to help.

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