The FRC has issued three new standards; FRS 100, FRS 101 and FRS 102. They apply to periods begining on or after 1 January 2015 but can be adopted immediately.
Background to changes in Irish GAAP
The three new standards are FRS 100 ‘Application of Financial Reporting Requirements’, FRS 101 ‘Reduced Disclosure Framework’ and FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
The new framework is mandatory for accounting periods beginning on or after 1 January 2015 and must be applied to such periods, however early adoption is permitted. Current Irish GAAP will be withdrawn at this date and will no longer apply.
FRS 100 is a short 13 page standard which essentially acts as the ‘Road Map’ for entities and provides guidance on the application of the new standards, in other words who does what?
FRS 101 provides guidance on the ‘Reduced Disclosure Framework’ (RDF) which permits qualifying entities to avail of certain disclosure exemptions. The principles for reduced disclosures are based around the relevance of certain disclosures to the readers and cost constraint where the disclosure requirement places undue burden/cost on the preparers of financial statements that are not justified by the benefits to the users of those financial statements.
FRS 102 is a single standard document comprising 226 pages. It is organised into 35 sections and will form the basis of financial reporting for the vast majority of Irish entities. The reduced disclosure framework applies to qualifying entities applying FRS 102.
The FRC in their efforts to ensure and maintain stability will leave FRS 102 intact for 3 years before any proposed update. As UITFs will be abolished any new abstracts will be known as FRC abstracts.
The FRSSE will continue to remain in existence for smaller entities.
The read to full article please click here to download: THE FUTURE OF IRISH GAAP