Audit watchdog to seek details on Irish PLC loans
Ireland's accounting watchdog is to focus on getting listed Irish companies to provide more information about bank loan agreements next year.
The Irish Auditing and Accounting Supervisory Authority (IAASA) has reviewed the annual reports of 27 Irish PLCs to assess how much detail they provide on banking covenants. "Such information is particularly relevant for users of annual accounts in cases where the company is in a vulnerable financial position," said the body.
"The disclosure of such information can assist users of annual accounts assess the creditworthiness and liquidity risk of a company."
All of the country's large quoted companies were included, aside from the banks.
Five of the companies had no bank debt. The remaining 22 companies had a combined total debt of €25.5bn.
There was a wide variance in how covenants were treated in annual reports. For example, eight of the 22 companies did not disclose any description of their covenants set by their lenders.
Two of the companies disclosed the terms of their covenants but not the actual measures achieved.
IAASA said it will continue to focus on this topic in 2019 touching on the rationale for not disclosing a description of the covenants imposed by the company's lender among other things.
Sunday Indo Business