Chartered accountants back legal changes

The Institute of Chartered Accountants in Ireland (ICAI) said yesterday it will continue to argue for a harmonisation of reporting obligations regarding company accounts.

Currently these operate under criminal, company and taxation law and are posing a considerable challenge to auditors and accountants.

ICAI chief executive Brian Walsh said the institute had worked with the Office of the Director for Corporate Enforcement (ODCE) to develop guidelines for reporting obligations for auditors, which saw reporting increase substantially in the second half of last year.

“We will continue to work with the ODCE and hope to see progress on a number of issues.

“Importantly, we have been arguing for a harmonisation of reporting obligations being faced by accountants and auditors ,” he said.

ICAI said it was also pleased at the recent proactive campaign by the Companies Registration Office to reduce the extent of late filing by companies.

“However, to encourage this process further we would like to see the CRO engage directly with companies’ agents, like accountants and auditors, on the filing issue,” said Mr Walsh.

The Government decision to accept the CLRG recommendation to move towards a single consolidated companies act with two separate parts was also welcomed.

The first will put in a standard regime for ordinary companies. The second part, dealing with larger entities, should provide additional clarity and simplicity to the legislative framework.

There are challenges ahead for Irish companies in the accounting area.

In particular, we are still waiting for a Government decision on the extent to which the newly developing International Accounting Standards will apply in this country.

The EU has made the adoption of IAS mandatory for listed companies by 2005, but the Government needs to decide whether these standards will apply to other companies.

Britain recently decided to allow other kinds of companies use IAS.

A recent business survey by Deloitte and Touche indicated that Irish companies were not prepared for the adoption of IAS.

A Government decision on their application would provide clarity and an impetus for companies to prepare themselves adequately.

Mr Walsh yesterday welcomed the publication of the Companies Report for 2002 by Minister of State Michael Ahern.

“As the report indicates, it has been a busy year in the area of company law development and enforcement. ICAI has been happy to work directly with Government and the various agencies involved,” he said.