Different Sources of Regulation for Financial Statements in Ireland
Outline the different sources of regulation of financial statements in Ireland.
When accountants are preparing a set of financial statements accountants must comply with the relevant accounting rules.
The regulatory framework provides a set of rules and regulations to ensure fair play.’ The principal aim of the regulatory frame work is to ensure that the financial statements present a true and fair view of the financial performance and position of the organization’.
The three sources of rules which accountants must be familiar with (aka the regulatory framework which applies to financial reporting by companies ) …show more content…
In Ireland there are two types of accounting standards - SSAP's and FRS's. 1. SSAP's
SSAP's were developed by an umbrella organization (ASC) consisting of representatives of the six professional accountancy bodies. These bodies then created the requirement for their members to follow the SSAP's. These SSAP's were developed between 1970 and 1990. 'It is believed that seeing as the professional accounting bodies represented the views of the profession that these SSAP's would ensure that treatment of items resulted in a true a fair view in the accounts'
SORP's were introduced by the ASC in 1983 in relation to recommended treatment of certain items but they are not mandatory and relate to issues that