Call for collaboration on accounting system changes

PROPOSED changes to accounting practices should benefit companies but further collaboration is needed before they are made law, according to financial advisers Deloitte.

The Accounting Standards Board for Ireland and Britain (the ASB) has proposed the abolishment of the widely-used GAAP accounting standard, used by most firms across Ireland and Britain, in favour of the wider International Financial Reporting Standards (IFRS) international standard, by 2012.

While some Irish companies do use the IFRS system, the only ones obliged to are those publicly quoted. The new proposals have been met with a broad welcome and a move would be in line with the policy of the Institute of Chartered Accountants in Ireland.