Accounting Standards in Ireland
Accounting Standards in IrelandUpdated on Tuesday 17th May 2016
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Companies established in Ireland are required to perform accounting activities in accordance with the legal requirements set out by the Irish Generally Accepted Accounting Principles (GAAP). It is important to perform the accounting procedure with the assistance of Irish accountants, who are familiar with the latest changes that may appear during the years. Although the general principles under which this procedure is performed remain the same, in a short period of time many provisions can be changed. Our team of Irish solicitors can assist foreign investors with the legal requirements established in this sense.
Accounting procedures for small companies in Ireland
The main statutory body in terms of accounting, the Financial Reporting Council (FRC), has recently modified the accounting standards applicable to small companies. The changes were created to simply the accounting system applicable to small and micro-companies set up in Ireland. The FRC imposed the new regulation as an effect of a European Directive on this matter, referring to an Accounting Directive for such entities; our Irish attorneys can provide more details on this matter.
FRS 105 for small companies in Ireland
The directive refers to the implementation of a new accounting standard, represented by FRS 105 (The Financial Reporting Standard applicable to small companies). The standard is available for companies which are considered micro-enterprises under the provisions of the Companies Act. The number of employees is set out at 10, while the turnover of the company can be of maximum GBP 632,000.
The FRS 105 represents a simple way to conduct accounting activities and it refers to the presentation of the company’s assets and liabilities.
An important aspect related to the FRS 105 is that it has recently been introduced, as it became applicable since the 1st January 2016.
Foreign and local businessmen who need further information on the accounting standards applicable in Ireland can contact our Irish law firm for assistance on the provisions of the law.