ICAI say that Irish Government and businesses unprepared
The Institue of Chartered Accountants in Ireland (ICAI) have released a paper on the benefits of International financial reporting standards (IFRS), specifically the benefits to Ireland of it, and the consequences of non-adoption.
In September 2003 the European Commission adopted a regulation endorsing certain IFRS, confirming the requirement for their compulsory use from January 1, 2005.
The intention to introduce this requirement was first discussed at EU level in 2000.
The Regulation also allows Member States a number of options regarding unlisted companies).
The ICAI say that the overall aim is to establish IASB standards as the universal, high quality rules for the preparation of corporate financial statements, thereby replacing national generally accepted accounting practice (GAAP) systems
The Institute says that the move to IFRS will have a wide-ranging impact on Irish business, and is not just an accounting issue but that neither Irish business nor the Irish Government appear to be fully prepared for this.
The group reiterated the importance for the Government take a leading role in promoting awareness of the issue, aiding business in their conversion process and easing the statutory accounting burdens on companies.
It also said that annoucing the Government's decision on the EU Regulation options would be a welcome start so that Irish business and its many stakeholders can begin to focus on the real issues and not be just waiting for something to happen.
