Ireland
Extent of IFRS applicationStatusAdditional Information
IFRS Standards are required for domestic public companies All domestic companies whose securities trade in a regulated market are required to use IFRS Standards as adopted by the EU in their consolidated financial statements.
IFRS Standards are permitted but not required for domestic public companies
IFRS Standards are required or permitted for listings by foreign companies IFRS Standards as adopted by the EU are required in their consolidated financial statements except that a foreign company whose home jurisdiction’s standards are deemed by the EU to be equivalent to IFRS Standards may use its home standards.
The IFRS for SMEs Standard is required or permitted SMEs may use a national standard that is based on the IFRS for SMEs Standard, but with significant modifications. Alternatively they may use IFRS as adopted by the EU.
The IFRS for SMEs Standard is under consideration

Ireland

RELEVANT JURISDICTIONAL AUTHORITY

Organisation

Chartered Accountants Ireland (CAI)

Role of the organisation
The accounting standards set by the UK Financial Reporting Council (FRC) are also applicable in the Republic of Ireland, where they are promulgated for use by the CAI under an administrative arrangement made between the Irish Government, the CAI, and the FRC.

COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS

Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
What is the jurisdiction's status of adoption?
The Republic of Ireland has already adopted IFRS Standards for the consolidated financial statements of all companies whose securities trade in a regulated market.
Additional comments provided on the adoption status?

As a member state of the European Union, the Republic of Ireland is subject to EU 1606/2002 Regulation on the application of international accounting standards (IAS).

The EU IAS Regulation requires application of IFRS Standards as adopted by the EU for the consolidated financial statements of European companies whose securities trade in a regulated securities market starting in 2005. In the Republic of Ireland, this would include the Main Securities market (MSM) of the Irish Stock Exchange. The EU IAS Regulation gives member states the option to require or permit IFRS Standards as adopted by the EU in separate company financial statements (statutory accounts) of such companies and/or in the financial statements of companies whose securities do not trade in a regulated securities market. See the Profile for the European Union for more detailed information about the EU IAS Regulation.

There is one regulated market in the Republic of Ireland – the Main Securities Market (MSM) of the Irish Stock Exchange.

The Republic of Ireland has used the option under the IAS Regulation to permit optional application of IFRS Standards as adopted by the EU for all companies whose securities do not trade in a regulated market, other than companies not trading for gain (S.I. No. 116/2005 — European Communities (International Financial Reporting Standards and Miscellaneous Amendments) Regulations 2005).

Issuers on the Enterprise Securities Market (ESM) (an equity market designed for small to medium sized growth companies that is not a ‘regulated securities market’) that are incorporated in the Republic of Ireland or elsewhere in the European Economic Area (EEA) and that are parent companies are required by ESM rules to apply IFRS Standards as adopted by the EU.

Issuers on the Global Exchange Market (GEM) (a specialist debt market) that are incorporated in the Republic of Ireland or elsewhere in the European Economic Area (EEA) are permitted by GEM rules to apply IFRS Standards as adopted by the EU.

If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
Not applicable.

EXTENT OF IFRS APPLICATION

For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
Yes.
If YES, are IFRS Standards REQUIRED or PERMITTED?
In accordance with the EU Accounting Regulation, IFRS Standards as adopted by the EU are required for the consolidated financial statements of all European companies whose debt or equity securities trade in a regulated market in the Republic of Ireland.
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
The principal securities exchange in the Republic of Ireland (the Main Securities Market of the Irish Stock Exchange) is a regulated market to which the EU IAS Regulation applies. The Republic of Ireland has other public securities markets that are not regulated markets. Domestic companies whose securities do not trade in a regulated market are permitted to use IFRS Standards as adopted by the EU. However, issuers on the ESM that are incorporated in the European Economic Area (EEA) and that are parent companies are required by the ESM Rules to apply IFRS Standards as adopted by the EU.
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
Yes.
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
Permitted.
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
Permitted, other than companies not trading for gain.
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
Not applicable.

For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
Yes.
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?

Required for some and permitted for others. Foreign companies whose securities trade in a regulated market in the Republic of Ireland (and generally in the EU) are required to report under IFRS Standards as adopted by the EU for their consolidated financial statements unless the European Commission has deemed their accounting standards to be equivalent to IFRS Standards, in which case they may use their local standards.

This is detailed on the ‘Financial Reporting’ page of the European Commission’s website.

Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
All.

IFRS ENDORSEMENT

Which IFRS Standards are required or permitted for domestic companies?
IFRS Standards as adopted by the European Union, which are IFRS Standards as issued by the IASB Board with some limited modifications such as the temporary ‘carve-out’ from IAS 39. However, the resulting financial statements of the majority of companies would still be in full compliance with IFRS Standards.
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
IFRS Standards as adopted by the European Union.
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Yes. An entity is permitted to assert compliance with IFRS Standards as adopted by the EU and, additionally, to assert compliance with IFRS Standards, provided compliance with IFRS Standards as adopted by the EU would also result in compliance with IFRS Standards as issued by the IASB Board.
Are IFRS Standards incorporated into law or regulations?
Yes.
If yes, how does that process work?
The process is described in the IFRS jurisdiction profile of the European Union.
If no, how do IFRS Standards become a requirement in the jurisdiction?
Not applicable.
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
Yes.
If yes, what is the process?
The process is described in the IFRS jurisdiction profile of the European Union.
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Not applicable.
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
Yes.
If yes, what are the changes?
Details are given in the IFRS jurisdiction profile of the European Union.
Other comments regarding the use of IFRS Standards in the jurisdiction?
None.

TRANSLATION OF IFRS STANDARDS

Are IFRS Standards translated into the local language?
Not applicable. English is the local language.
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Not applicable.

APPLICATION OF THE IFRS FOR SMEs STANDARD

Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
On 14 March 2013 the Financial Reporting Council issued FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. It is effective for periods beginning after 1 January 2015. FRS 102 is based on the IFRS for SMEs Standard, but with significant modifications described below.
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Not applicable.
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
Yes.
If the jurisdiction has made any modifications, what are those modifications?

In adopting FRS 102, the following modifications were made to the IFRS for SMEs Standard, among others:

  • Added an option to Section 17 to revalue property, plant and equipment and, similarly, to Section 18 to revalue certain intangible assets.
  • Added an option to Section 18 to capitalise development costs when specified criteria are met.
  • Changed the presumption in Section 18 of a ten-year useful life for amortisable intangible assets, including goodwill, when a reliable estimate cannot be made to amortisation over not more than five years.
  • Added an option in Section to capitalise borrowing costs on qualifying assets.
  • Require merger accounting (pooling) for combinations of entities under common control.
  • Non-cash distributions to owners do not have to be measured at fair value.
  • Added an accrual accounting option for government grants.
  • Require a timing difference approach to deferred income taxes, rather than temporary difference approach.
  • Permit historical cost model for all biological assets.
  • Made numerous other changes to permit accounting treatments that exist in FRSs at the transition date that align with EU-adopted IFRS Standards.
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
FRS 102 is available to all entities not required to apply EU adopted IFRS.
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
Under the administrative arrangement with the UK FRC, Irish SMEs can use United Kingdom Financial Reporting Standards, or full IFRS Standards as adopted by the EU. The UK Financial Reporting Standard for Smaller Entities is not used in the Republic of Ireland, where there is no equivalent to the UK small companies regime in Irish company law.
Other comments regarding use of the IFRS for SMEs Standard?

FRS 102 may be found on the UK FRC's website.

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