Over the years, Ireland has grown to be one of the best investment destinations in the world. This is credited to its business-friendly laws and low corporate tax rates.
It is important note that although Ireland highly promotes investments from around the world—it's quite stern when it comes to it’s accounting laws and regulations. Failure to comply can lead to termination of the business, imprisonment, lawsuits among other undesirable repercussions.
Listed below are some of the non-negotiable accounting laws and regulations you should know as an investor.
Ireland does not impose fixed dates for its tax year. Every Irish company has a different tax year period. This is because each company’s tax year starts from the date when the company was started to the date which is not more than eighteen months from the commencement date. After the first year, the default financial year would be twelve months. The directors are allowed to set up a grace period of up to seven days.
All business entities in Ireland are required to comply with International Financial Reporting Standards (IFRS). The only exception goes for companies whose residential country’s jurisdiction standards are approved by the European Union to be parallel to the IFRS Standards.
Irish Accounting Regulatory Bodies
There is only one Accounting regulation body in Ireland, the Irish Auditing and Accounting Supervisory Authority (IAASA). IAASA was formed pursuant to the provisions stated in the Companies Act of 2003.
Companies in Ireland are required to follow a standard way of information disclosure. Thus the classification and presentation of information and methods of evaluation for the annual accounts of certain business entities should be standard. This includes balance sheets, profit and loss accounts and notes to the accounts.
It is mandatory for every company in Ireland to prepare an annual financial statement which complies with the International Financial Reporting Standards (IFRS). Unlimited companies, dormant companies, and companies limited by guarantee can be exempted from the audit if their size qualifies them. There are no obligations for Irish companies to use a company calendar but it is essential that the company owners get approval for their financial statements within nine months of the commencement of the company. Soon after approval, companies with unlimited status will be all set, they are not obliged to file their accounts. However, companies with limited liability status are obliged to file their financial statements with the Companies Office, where they are available to the public.
Professional Accountancy Bodies
- Institute of Chartered Accountants in Ireland. , Publishes the journal Accountancy Ireland
- Association of Chartered Certified Accountants
- Institute of Accounting Technicians in Ireland
- Institute of Certified Public Accountants in Ireland
Auditing and Certification
The registration and approval of accountants are done by the Recognised Accountancy Bodies (RABs). However, these bodies should conduct their duties in compliance with the Irish Auditing and Accounting Supervisory Authority (IAASA). This is the board that oversees all Irish statutory auditors and audit entities.
As a savvy investor, you would certainly want to stay au courant with accounting news. The most popular and reliable news platforms in Ireland are:
- EIN News
- International Accounting Standards Board
Ireland is quite a friendly country and if you comply with all the business laws and regulations, you can be sure you will succeed. For more details and assistance, you can contact our expert consultants. Our highly experienced and well-informed team is ready to answer all your questions and give you all the help you might need.