Ireland

The accounting standards set by the UK Financial Reporting Council (FRC) are also applicable in the Republic of Ireland, where they are promulgated for use by the CAI under an administrative arrangement made between the Irish Government, the CAI, and the FRC.

COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS

Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?

Has the jurisdiction made a public commitment towards IFRS Accounting Standards as that single set of high quality global accounting standards?

The Republic of Ireland has already adopted IFRS Standards for the consolidated financial statements of all companies whose securities trade in a regulated market.

As a member state of the European Union, the Republic of Ireland is subject to EU 1606/2002 Regulation on the application of international accounting standards (IAS). The EU IAS Regulation requires application of IFRS Standards as adopted by the EU for the consolidated financial statements of European companies whose securities trade in a regulated securities market starting in 2005. In the Republic of Ireland, this would include the Main Securities market (MSM) of the Irish Stock Exchange. The EU IAS Regulation gives member states the option to require or permit IFRS Standards as adopted by the EU in separate company financial statements (statutory accounts) of such companies and/or in the financial statements of companies whose securities do not trade in a regulated securities market. See the Profile for the European Union for more detailed information about the EU IAS Regulation. There is one regulated market in the Republic of Ireland – the Main Securities Market (MSM) of the Irish Stock Exchange. The Republic of Ireland has used the option under the IAS Regulation to permit optional application of IFRS Standards as adopted by the EU for all companies whose securities do not trade in a regulated market, other than companies not trading for gain (S.I. No. 116/2005 — European Communities (International Financial Reporting Standards and Miscellaneous Amendments) Regulations 2005). Issuers on the Enterprise Securities Market (ESM) (an equity market designed for small to medium sized growth companies that is not a ‘regulated securities market’) that are incorporated in the Republic of Ireland or elsewhere in the European Economic Area (EEA) and that are parent companies are required by ESM rules to apply IFRS Standards as adopted by the EU. Issuers on the Global Exchange Market (GEM) (a specialist debt market) that are incorporated in the Republic of Ireland or elsewhere in the European Economic Area (EEA) are permitted by GEM rules to apply IFRS Standards as adopted by the EU.

If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Accounting Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Accounting Standards in the jurisdiction.

EXTENT OF IFRS APPLICATION

For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Accounting Standards in their consolidated financial statements?

In accordance with the EU Accounting Regulation, IFRS Standards as adopted by the EU are required for the consolidated financial statements of all European companies whose debt or equity securities trade in a regulated market in the Republic of Ireland.

Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?

The principal securities exchange in the Republic of Ireland (the Main Securities Market of the Irish Stock Exchange) is a regulated market to which the EU IAS Regulation applies. The Republic of Ireland has other public securities markets that are not regulated markets. Domestic companies whose securities do not trade in a regulated market are permitted to use IFRS Standards as adopted by the EU. However, issuers on the ESM that are incorporated in the European Economic Area (EEA) and that are parent companies are required by the ESM Rules to apply IFRS Standards as adopted by the EU.

Are IFRS Accounting Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?

For instance, are IFRS Accounting Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?

For instance, are IFRS Accounting Standards required or permitted for companies whose securities do not trade in a public market?

If the jurisdiction currently does NOT require or permit the use of IFRS Accounting Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Accounting Standards for such companies in the future?

For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Accounting Standards in their consolidated financial statements?

Required for some and permitted for others. Foreign companies whose securities trade in a regulated market in the Republic of Ireland (and generally in the EU) are required to report under IFRS Standards as adopted by the EU for their consolidated financial statements unless the European Commission has deemed their accounting standards to be equivalent to IFRS Standards, in which case they may use their local standards. This is detailed on the ‘Financial Reporting’ page of the European Commission’s website.

Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?

IFRS ENDORSEMENT

IFRS Standards as adopted by the European Union, which are IFRS Standards as issued by the IASB Board with some limited modifications such as the temporary ‘carve-out’ from IAS 39. However, the resulting financial statements of the majority of companies would still be in full compliance with IFRS Standards.

The auditor’s report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:

Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Accounting Standards and the jurisdiction’s GAAP)?

Yes. An entity is permitted to assert compliance with IFRS Standards as adopted by the EU and, additionally, to assert compliance with IFRS Standards, provided compliance with IFRS Standards as adopted by the EU would also result in compliance with IFRS Standards as issued by the IASB Board.