Aidan Davitt (Fianna Fail) | Oireachtas source

Fianna Fáil supports the swift introduction into Irish law of the Companies (Amendment) Bill 2017, which will extend the current expiry date of 31 December 2020 to enable qualifying companies, incorporated in Ireland, to prepare and file financial statements using US Generally Accepted Accounting Principles, GAAP, rather than International Financial Reporting Standards, IFRS. The extension is for ten years to December 2030.

In 2009, under a Fianna Fáil-led Government, a temporary exemption was introduced that enabled companies to prepare their financial statements in accordance with US GAAP. This was subsequently referenced under section 279(2) of the Companies Act 2014. The Bill will give long overdue legal certainty and clarity to the companies concerned by strengthening the regulatory competitiveness of Ireland in this area and secure jobs in the medium term. This is more salient than ever with Brexit on the horizon and a more competitive business landscape likely in the US under the new Administration. There was an impending requirement for SEC-listed and Irish incorporated companies to file accounts under both US GAAP and IFRS. However, a previous convergence project between both standards has stalled. Fianna Fáil has pressed for this expiry extension over the past 18 months and on Committee and Report Stages of the Companies (Accounting) Bill 2016 in the Dáil, in order to safeguard 8,000 highly-skilled jobs.Legal certainty was urgently needed by these companies which, in the absence of an extension to the 2020 expiry date, would have had to start making extensive preparations to meet new standards under IFRS guidelines. The deadline for the 2020 expiry date would effectively be 2018. It has been estimated that the cost of introducing and implementing the IFRS requirements would be a minimum of $20 million before the end of each company’s financial year in 2017 due to reallocation and introduction of extra resources and staff training while streamlining the different systems required to meet these compliance obligations.

It was only after Fianna Fáil indicated on Report Stage of the Companies (Accounting) Bill 2016 in the Dáil that we were going to introduce an amendment in the Seanad to extend the current expiry date that the Minister magically at the eleventh hour was able to fast forward legislative proposals at Cabinet last week to show cause on this issue. Therefore, the flagged amendment by Fianna Fáil has expedited the legislative process for this issue and, thankfully, awoken the Government.

We appreciate it coming but it could have happened a bit earlier. That is the general gist of it.