Accountants face a year of change in 2005, the Institute of Chartered Accountants in Ireland said yesterday.

Institute president Mr Terence O'Rourke said the introduction of international financial reporting standards (IFRS) and of international standards on auditing (ISAs) were two of the most important developments since the codification of accounting standards.

He pointed out that IFRS is mandatory for the consolidated accounts of listed companies since January 1st.

"This means that these companies will be producing their accounts for the 2005 financial year using IFRS."

The Irish and British governments are also allowing other companies to opt in to use IFRS. "We expect to see a significant move to the new standards over the next few years and believe that the Government should move to co-ordinate a full changeover so that everybody is using a single set of standards."

Mr O'Rourke said the introduction of new standards would take time to bed down.

He said the international standards on auditing would also apply to the audit of financial statements for periods beginning after December 15th, 2004.

"They will figure prominently in audit planning work done this year," he said.