Basis of Preparation

Each set of Companies Act financial statements must include a statement as to whether they have been prepared in accordance with applicable accounting standards and identify the standards in question and note any material departure from those standards, the effect of that departure and the reasons for it, if applicable (Section 291(7)). An illustration is outlined below:

Illustrated disclosure of basis of preparation statement where financial statements are prepared under Irish GAAP:
The financial statements have been prepared in accordance with accounting standards generally accepted in Ireland and the Irish statute comprising the Companies Act 2014. Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are those promulgated by the Institute of Chartered Accountants in Ireland and issued by the Financial Reporting Council.

Illustrated disclosure of basis of preparation statement where financial statements are prepared under Financial Reporting Standard for Smaller Entities (FRSSE):
The financial statements have been prepared in accordance with accounting standards generally accepted in Ireland and the Irish statute comprising the Companies Act 2014 and the Financial Reporting Standard for Smaller Entities (effective April 2008). Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are those promulgated by the Institute of Chartered Accountants in Ireland and issued by the Financial Reporting Council.