Extension of EU accounts rule urged

A NEW EU regulation requiring listed companies to prepare their accounts in accordance with international standards should be extended to all companies, an accountants’ body said yesterday.

In a submission to the Tánaiste and Minister for Enterprise Mary Harney, the Institute of Chartered Accountants in Ireland (ICAI) said the rule that listed firms should comply with International Financial Reporting Standards (IFRS) from 2005 should be extended to all companies, subject to an optional transition period for SMEs to help them deal with both training issues and the workload involved in converting their systems.

Early last year, the EU Industry Council adopted a regulation which requires all listed companies in the EU to prepare their consolidated financial statements in accordance with IFRS.