News

This page highlights current news items or the latest changes to our site.

FRC consults on accounting standards for small entities

Monday, 1st September 2014: The UK Financial Reporting Council (FRC) has today issued a Consultation Document Accounting Standards for Small Entities - Implementation of the EU Accounting Directive to coincide with the publication of the UK Department of Business, Innovation and Skills (BIS) consultation document UK Implementation of the EU Accounting Directive.  The public consultation undertaken by the Department of Jobs, Enterprise and Innovation closed on 31 March 2014.

The FRC proposes:

a) to issue a new accounting standard for micro-entities. The Financial Reporting Standard for Micro-entities (FRSME) will make financial statements for these entities simpler;

b) the introduction of a new section into FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for small entities. The underlying accounting by small entities will in future be consistent with the standard for financial reporting used by other unlisted companies, subsidiaries of listed companies and public benefit entities such as charities; however, the presentation and disclosure requirements for small entities may be more straightforward; and

 

c) as a result, the FRC’s existing Financial Reporting Standard for Smaller Entities (FRSSE) be withdrawn.

Pursuant to its statutory mandate to cooperate in the development of accounting standards, IAASA has observer status at meetings of the Accounting Council of the FRC.

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FRC issues amendments to FRS 101 and FRS 102

Wednesday, 23rd July 2014: The UK Financial Reporting Council (FRC) has today issued amendments to new UK and Irish GAAP to improve the accounting for certain financial transactions, which will also improve ease of use of the Standards and reduce the cost of compliance. The amendments to FRS 102:

  1. relate to financial instruments:

    updating the requirements on hedge accounting, making hedge accounting more readily available to entities where it is consistent with their risk management processes;

    relaxing the conditions for regarding financial instruments as ‘basic’, with the effect that more financial instruments will be measured by reference to cost rather than fair value;

  2. make transition to FRS 102 less costly; and
  3. are effective from the same date as FRS 102, 1 January 2015.

Pursuant to its statutory mandate to cooperate in the development of accounting standards, IAASA has observer status at meetings of the Accounting Council of the FRC.

The amendments may be accessed via the FRC website here.

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Comment letter from European audit regulators relating to IAASB’s exposure draft

Tuesday, 22nd July, 2014: The European Audit Inspection Group (‘EAIG’) has submitted a joint comment letter to the International Auditing and Assurance Standards Board (‘IAASB’) regarding the re-exposure of the proposed International Standard on Auditing (‘ISA’) 720 (Revised): The Auditor’s Responsibilities Relating to Other Information. The comment letter has been signed by 21 EAIG members, including IAASA.

The EAIG’s primary purpose is to create awareness of significant issues and promote cooperation and consistency amongst European audit regulators on inspections. The group shares inspection practices and findings and facilitates discussions on topics related to audit inspections with third parties, such as the standard setters and the audit profession.

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ESMA publishes accounting enforcement guidelines

Thursday, 10th July, 2014: The European Securities and Markets Authority (ESMA) has published its final Guidelines on the enforcement of financial information published by listed entities in the European Union (EU). The aim of the guidelines is to strengthen and promote greater supervisory convergence in existing enforcement practices amongst EU accounting enforcers.

The Guidelines set out the principles to be followed by accounting enforcers throughout the enforcement process by defining the objectives, the characteristics of the enforcers, and some common elements in the enforcement process. They will strengthen the development of coordinated views on accounting matters prior to national enforcement actions, the identification of common enforcement priorities and common responses to the accounting standard setter to ensure consistent application of the financial reporting framework. The guidelines will apply to all national competent authorities and any other bodies in the EU undertaking enforcement responsibilities under the Transparency Directive.

A copy of the associated press release can be accessed here.

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IAASA publishes its eighth Annual Report

Tuesday, 1st July, 2014: IAASA’s eighth Annual Report has been laid before the Houses of the Oireachtas, and is now available for download here.

The Report provides a detailed analysis of the Authority’s activities during 2013 in its principal functional areas, together with reviews by the Chairperson and Chief Executive respectively of the challenges faced during the year, the achievements, and a vision for future years.  The associated press release can be accessed here.

Statistical data for the year has been published separately in IAASA’s 2013 Profile of the Profession.

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Irish Auditing & Accounting
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Ireland

Phone: +353 (0) 45 983 600
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Email: info@iaasa.ie