Irish Taxation Institute: Educating, Developing and Representing

Key Features

Certain companies are required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS) with effect from 1 January 2005. From a corporate tax perspective, Section 48 Finance Act 2005 included a definition of Generally Accepted Accounting Practice (GAAP) together with a number of new sections in the TCA. These latter sections effectively required GAAP (IFRS or Irish GAAP) be followed subject to an adjustment required or authorised by law in computing certain profits chargeable to tax. The purpose of the text is to discuss the impact of Finance Act 2005 (as amended by Finance Act 2006) on the tax computations of certain companies. The text will deal with such issues as, inter alia:.

• Revenue guidance issued in connection with Section 48 FA2005
• Relevant case law
• A discussion of the tax implications of various accounting issues to include financial instruments, work in progress, foreign exchange transactions, share based payments etc.
• Transitional arrangements dealing with a change from one accounting framework to either IFRS or Irish GAAP converging to IFRS

• The text aims to present the tax treatment of various issues and to outline their respective accounting treatment which the tax consultant can expect to see in the financial statements going forward. This will be done, where relevant from both an IFRS and Irish GAAP perspective. As such, the text is the first of its kind on the Irish market.

Editors Review

Tom Maguire is an Associate Director in KPMG’s Tax Knowledge Centre. He is an Associate of the Irish Taxation Institute, a Fellow of the Association of Chartered Certified Accountants, and holds an MBA from Trinity College Dublin. He received the 2005 ITI award for “Outstanding Contributions to Seminars” for his work on the Institute’s half-day seminars “IFRS is here, and you need to know!” Tom has lectured for the Institute and written for the Irish Tax Review on various tax topics.