Irish firms can prepare all accounts to new IAS norms

All companies are free from next year to prepare their accounts according to new international standards that will allow for easier international comparison, it was announced yesterday.

Mr Michael Ahern, Minister of State at the Department of Enterprise, Trade and Employment, said non-traded companies that wish to may immediately move to adopting the new International Accounting Standards (IAS). Those who are not in a position to do so can continue to prepare their accounts according to existing standards.

Subsidiaries of plcs may also adopt the new standards. Publicly traded companies will be obliged under EU rules to prepare consolidated accounts according to the new standards.

The new regime for all company types comes into effect from January 1st, 2005. The Institute of Chartered Accountants in Ireland (ICAI) and the Institute of Certified Public Accountants in Ireland (CPA) have welcomed the announcement.

"The Minister's announcement today moves the spotlight to the Revenue Commissioners who need to set out clearly how they intend dealing with accounts prepared in IAS," said ICAI president, Mr Terence O'Rourke.

The CPA said that without the decision, all Irish non-plcs - including the subsidiary companies of plcs - would not have been allowed prepare their financial statements in accordance with IAS, necessitating two sets of accounts for plc subsidiaries.

Mr Eamonn Siggins, chief executive of the CPA, said the decision would "facilitate transparency and comparability in financial statements and help restore public confidence in the global accounting regime".

However, he said he was disappointed the Minister had not announced a complete move to IAS. Having two sets of standards in operation will create difficulties for Irish business, he said.

All companies within a group must use the same standards.