Financial Reporting

Financial reporting is the process of producing financial statements which disclose an entity’s profit or loss, assets, liabilities, cashflows and other relevant information in accordance with accounting standards and relevant laws. The financial statements produced during this process can be used by a wide range of stakeholders, including investors, creditors, tax authorities, staff, government bodies and other bodies, and may assist these bodies in their decision making and regulatory activities. The financial statements will also assist the entity in meeting its legal requirements, such as remaining tax compliant and ensuring that its Company filings are up to date. 

Depending on the entity type, financial statements will be drawn up in accordance with a financial reporting framework and relevant laws and regulations that are applicable to the entity. Furthermore, they may be prepared in accordance with a “true and fair” framework which may necessitate some additional disclosures above and beyond those set out in the accounting standards.

Accounting Standards

Irish and UK GAAP

The Financial Reporting Council (FRC) in the UK is the accounting standard setter for both Ireland and the UK.

IFRS

International Financial Reporting Standards (IFRSs) are published by the International Accounting Standards Board (IASB). 

Company Law

Company Law in Ireland and the UK requires directors of companies incorporated in the respective jurisdictions to prepare financial statements/accounts for the company which give a “true and fair view”. 

Statements of recommended practice (SORPs)

SORPs are sector-driven recommendations on financial reporting, auditing practices and actuarial practices for specialised industries, sectors or areas of work, or which supplement FRC standards and other legal and regulatory requirements in the light of special factors prevailing or transactions undertaken in that particular industry, sector or area of work that are not addressed in FRC standards. SORPs also address matters that are addressed in FRC standards, but about which additional guidance is considered necessary. 

Institute publications

The Institute has produced Technical Releases and Technical Alerts on aspects of Financial Reporting.

Other miscellaneous publications and information

A selection of other publications and information that may be of relevance or interest is provided here, including a link to the Institute's 'Financial Reporting implications of Coronavirus' page.

Articles

We have assembled some articles of a financial reporting nature that may be of interest.

Practice Toolkits and courses

These pages are provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.