Sunday 22 September 2019

Accounts transparency rules made 'no impact'

The introduction of IFRS 15 has made little difference to reporting practices, according to the Irish Auditing and Accounting Supervisory Authority. (Stock image)
The introduction of IFRS 15 has made little difference to reporting practices, according to the Irish Auditing and Accounting Supervisory Authority. (Stock image)

Michael Cogley

Changes to accounting practices aimed at improving transparency in company accounts has had little impact in the way most firms present their books, new research has found.

Since the start of 2018, companies have been obliged to include the nature, the amount, the timing, and the uncertainty of revenues.

According to a desktop study of this year's interim results by the Irish Auditing and Accounting Supervisory Authority (IAASA), the introduction of IFRS 15 has made little difference to reporting practices.

IAASA found that 15 of 20 companies evaluated said the change had made "no material impact" to the way their accounts were produced. Around a third did not explain the timing of their revenue.

Almost half of businesses covered by the study said that revenue was recognised once the obligation was passed to the customer, but did not provide criteria as to when that happens.

Sunday Independent

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