Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

The Companies Act refers to balance sheets. However, there is also provision for the move to the term "statement of financial position" as provided for in accounting standards and as used in general in accounting practice. For example, section 274(1) of the Companies Act 2014 provides that:

“balance sheet”, in relation to a company, means a statement of assets, liabilities and financial position drawn up at a particular date showing the assets, liabilities and equity of the company at that date in a manner required by the financial reporting framework adopted by the company, and—

(a) for the avoidance of doubt, where the financial statements are prepared in accordance with IFRS, the expression means the statement of financial position referred to in those standards

In simple terms, the statement of financial position has replaced "balance sheet" in general usage, driven mainly by the adoption of the term in accounting standards. In respect of "profit and loss account", this term continues to be used both in law and in accounting standards. Entities which are not for profit such as charities and many semi-State bodies generally use the term "income and expenditure account" in place of "profit and loss account" in their financial statements. There has been no change in respect of the term "cash flow statements". The Commission for Aviation Regulation, CAR, is currently audited by the Comptroller and Auditor General and these are recommendations coming from him.