1606/2002/CE Regulation: Impacts declared by Irish companies

Abstract

The application of Regulation EC 1606/2002 required the adoption of international accounting standards from the year 2005 for listed European companies. Implementations of this law, however supplemented by domestic law, important and innovative objectives are distinguished, such as increased transparency and comparability of financial statements at the international level, improving the functioning of the stock market to ensure the preparation of financial information in a common base, the reinforcement of the freedom of circulation of capitals in the market, increasing the confidence in financial markets and investor protection.
The study covers the analysis of financial statements of non-financial firms of ISEQ-20, elaborated under the two standards, the Irish and the IASB, reported to the same day, examining whether the implementation of new standards resulted in significant impacts, identifying them and explaining them in light of both standards. We’ll accentuate the differences that the quantitative analysis will evidence, complemented by qualitative information.