IAASA, Ireland’s accounting enforcer, has published its annual Observations document highlighting key topics to be considered by those preparing, approving and auditing 2016 financial statements.

Despite being aimed mainly at preparers, approvers and auditors, IAASA believes that the document may be helpful to the users of financial statements in helping them to understand the significant judgements made by entities in preparing financial statements.  The document seeks to highlight matters users may wish to be aware of and focus on when reviewing those financial statements. 

IAASA’s 2016 Observations document focuses on some key areas that merit close scrutiny by those preparing, approving and auditing 2016 financial statements in the upcoming reporting season including:

• uncertainties facing entities brought on by low or negative interest rates, low commodity prices, volatility in exchange rates, Brexit and sluggish EU economic growth offset by an improving domestic economy;

• the measurement of fair values and determining discount rates used in measuring pension liabilities; and

• reporting financial performance, including the use of alternative performance measures (APMs or KPIs) and the quality of disclosures. Disclosures should be relevant and tailored to the reporting entity’s specify circumstances rather than being “boiler plate” in nature.

The Observations document can be accessed here.

IAASA has in previous years issued similar Observations documents and these may be accessed here.