1. The European Perspective Liam McQuaid Managing Partner
International Financial Reporting Standards (IFRS) AGN World Congress - Chicago 19 October 2009
The European Perspective
Liam McQuaid
Managing Partner

2. Introducing Liam McQuaid
Managing Partner - Duignan Carthy O’Neill
Chairman AGN Europe
Director AGN International
Member of ASB CASE Committee
Member of Accounting Committee - Chartered Accountants Ireland

3. Introducing Duignan Carthy O’Neill, Chartered Accountants, Dublin, Ireland
Established over 40 years, Chartered Accountants
Services Include: - Audit & Accounting
- Tax & Liquidations
- Corporate Finance
Partners Extensive Experience &
International Work through AGN
PCAOB Registered to undertake audits in Ireland and U.K. of US Public Company Subsidiaries

4. IFRS – The European Perspective Overview of Issues
IFRS use in European Union
Local European GAAP and IFRS Compared
IFRS for SMEs
AGN European Region IFRS Initiatives
IFRS in Practice
Conclusion

5. IFRS Use in European Union

6. IFRS Use in European Union
IASB - Cannot Impose Use of IFRS
Quoted Companies Must use IFRS
“As applicable in the E.U.”
Private Entities - 4th EU Directive
- Local GAAP
- IFRS permitted in certain countries

7. European Unlisted Companies Use of IFRS

8. European Unlisted Cos. Use of IFRS
IFRS Permitted in Consolidated Statements
Prohibited in Separate Statements
Austria
Sweden X
Belgium
Spain
Czech Republic
France
and Separate Company Statements
Denmark
Netherlands
Greece
Norway
Ireland
Italy
X (exclude small cos)
Luxembourg UK
Germany
X (and local GAAP Statements also required)

9. Local European GAAP and IFRS Compared

10. IFRS/German/ French/ Ireland/UK GAAP Compared
Subject
IFRS
German
French
Ireland/UK
Legal Basis No
Yes
Commercial Code
True and Fair Override
Basis of
Accounting
Revaluations Used
Historic Cost
Specified Balance Sheet
Format
None
Depreciation
PPE
Over Useful
Life
Tax Driven (1)
Over Useful Life
Revenue
Recognition
Substance of
Arrangement
Legal
On Performance of Contractual Obligation
Differences above highlight difficulties in implementing IFRS in Europe
(1) As of 1 January 2010 the link between statutory accounts and tax accounts is not so strong as in the past.

11. IFRS for SMEs

12. IFRS for SMEs Published July 2009
Use by Private Entities if Approved by Local Jurisdiction
(i.e. 95% of all companies UK & Ireland)
Excellent Standard
EU Commission Now Reviewing IFRS for SMEs as Part of EU Directive Project
- Micros (Sales less than €1M)
can be exempt from
EU Directives
Implementation - UK & Ireland Positive
- South Africa Adopted
- Others too early

13. AGN European Region IFRS Initiatives

14. AGN European Region IFRS Initiatives
IFRS Seminar Firms – 25 Participants
(Prague % AGN – Speakers
18 Sept 2009) – Location
– Attendees
- New Attendees (15)
- Free + on Friday + in suitable City
IFRS Helpline Designated member to answer IFRS Queries
Minor Advice - No Fee
Extensive Advice - Fee
IFRS Blog In Progress
IFRS Referrals In Progress
AGN/IFRS
University Prize In Progress

15. IFRS in Practice

16. IFRS in Practice Example of Financials (Curanum) Good Example
Good Fees

17. Conclusion

18. Conclusion Quoted Companies - IFRS Acceptance Obligatory
Private Companies Differences in Local GAAP + IFRS
causes implementation difficulties
- IFRS for SMEs will force debate
- Ireland & UK will most likely adopt
IFRS for SMEs
AGN IFRS Initiatives - Annual Seminar
- Helpline
- Referrals
IFRS in Practice Good Fees

19. Duignan Carthy O’Neill, Chartered Accountants
84 Northumberland Road, Dublin 4, Ireland
Contact: Liam McQuaid
(01)
Web Site: