Outline the different sources of regulation of financial statements in Ireland.
When accountants are preparing a set of financial statements accountants must comply with the relevant accounting rules.
The regulatory framework provides a set of rules and regulations to ensure fair play.’ The principal aim of the regulatory frame work is to ensure that the financial statements present a true and fair view of the financial performance and position of the organization’.
The three sources of rules which accountants must be familiar with (aka the regulatory framework which applies to financial reporting by companies ) : * Legislation/Law : Via the government through companies legislation * Accounting standards: Via accounting standard setting bodies through accounting standards. Group accounts are also subject to IAS's. * Stock exchange rules : Publically listed companies are governed by rules issued by the Stock Exchange.
Legislation
‘Companies acts are acts of the Oireachtas which specify the legal requirements for companies including regulations for accounting and reporting’.
The various companies acts which have been in force in Ireland since 1963 are | * The Companies Act 1963 was the principal act in ireland. | * The Companies Amendment Act 1977 was issued to facilitate changes in Stock exchange procedures. | * The Companies Amendment Act 1982 was issued to deal with sundry miscellaneous changes to the principal act | * The Companies Amendment Act 1983 was issued to implement the EC Second directive dealing with maintenance of capital and provision of certain rights to shareholders. | * The Companies Amendment Act 1986 was issued to implement EC Fourth Directive harmonizing financial reporting in member states | * The Companies Amendment Act 1990 was issued to deal with
References: : Jones, 2006, Accounting second edition, Sussex, John Wiley and Sons Ltd Brennan, Peirce, 1996, Irish company accounts – regulation and reporting, Dublin, Oak Tree Press Melville, 2008, International financial reporting a practical guide, Essex, FT Prentice Hall IASB, 2011, IASB IAS’s (online) Available at http://www.valuebasedmanagement.net/organizations_iasb.html [Accessed on September 2011] Tyrell, 2006, Accounting for Senior Cycle, Edco, Dublin Roberts, Weetman,Gordon, 2005, International Financial Reporting – A comparative approach, Essex, FT Prentice Hall Lewis, Pendrill, 2004, Advanced Financial reporting, Essex, FT Prentice Hall. Black, 2003, Students guide to financial reporting standards 9th edition, Essex, FT Prentice Hall Deloitte, what is the ISAB(online) [Accessed on September 2011] Department of Jobs, enterprise and employment, 2011, Companies Acts 1963 – 2009 ( online) PricewaterhouseCoopers, 2009, Simplified IFRS represents the end of Irish GAAP as we know it (online) Available online http://www.accountingnet.ie/financial_reporting/Simplified_IFRS_represents_the_end_of_Irish_GAAP_as_we_know_ PricewaterhouseCoopers, 2011, The Future of Irish GAAP, Good news from the ASB[pdf], (online) Available online http://download.pwc.com/ie/pubs/2011_the_future_of_irish_gaap_good_news_from_the_a5b_by_fion Elliot, Elliot, 2011, Financial Accounting and Reporting, Essex. FT Prentice Hall Alfredson, Leo, Picker, Pacter, Radford, 2005, applying international accounting standards, Milton, John Wiley and Sons Australia Ltd Dr Tommaso Padoa-Schioppa, IASC Foundation, 2006, Future of IASB Funding [pdf] (online) Available online http://www.iasb.org/NR/rdonlyres/F9AA7025-226A-4FD9-8A6B-0896B93FDF8C/0/SchioppaMarch2006.pdf [Accessed on September 2011] IASB, 2008, Due process handbook for the IASB [pdf] (online) IFRS, 2011 , About the IFRS foundation and the IASB, (online) Available online http://www.ifrs.org/The+organisation/IASCF+and+IASB.htm [Accessed on September 2011] Buck, 2005, Brussels seeks a greater role in IASB decisions (online) Seanad Eireann, 1985, Companies amendment bill 1985, Second stage, (online) Available online http://debates.oireachtas.ie/seanad/1986/06/18/00008.asp [Accessed September 2011] Deloitte, 2011, Accounting standards updates by jurisdiction (online) O’Keefe, Hackett, 2010, Are you ready for the end of Irish GAAP?, (online) Available online http://www.charteredaccountants.ie/Members/Technical1/Finance-Leaders-Articles/Are-you-Ready-for-the-End-of-Irish-GAAP---Irene-OKeefe-FCA-and-Fiona-Hackett-FCA/ [Accessed September 2011] Tutor2you, 2011, Study notes business finance and accounting, (online) Times 100, 2011, Accounting Concepts, (online) Available online http://www.thetimes100.co.uk/theory/theory--accounting-concepts--294.php [Accessed September 2011] CPA, 2011, CPA Code of Ethics [pdf] (online) Unknown – This information was taken from a book called advanced financial reporting, however the book has been taken from the library without me being able to obtain the authors name Grant Thorton, 2011, IFRS’s for SME’s in Ireland [pdf] (online)