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New Financial Reporting Standards Could Improve Outlook for Ireland

New financial reporting standards could make Ireland more attractive for inves

With the exception of Greece, Ireland has been hit perhaps hardest of all the European countries during the most recent wave of economic turmoil. While there is no silver bullet to fix Ireland's - or any country's - economy, new accounting standards might go a long way toward making the Emerald Isle more attractive to investors.

Ireland is gearing up to scrap its current Generally Accepted Accounting Principles in favor of a unified set of accounting standards with the rest of the United Kingdom, The Irish Times recently reported. Among other benefits, the new Financial Reporting Standard 102 should improve transparency and consistency in financial reporting, which can increase investor confidence.

“There has been a global move for consistency in reporting standards for many years and in 2005 all stock exchange listed companies moved to the International Financial Reporting Standard," Irene O'Keeffe, partner with auditing giant PricewaterhouseCoopers, told the source. "The U.K. Accounting Standards Body has been working on bringing financial reporting standards for other companies up to date since then."

The new system will simplify accounting standards across Great Britain, according to the source. The current set of regulations is more than 2,500 pages, while the FRS 102 is just 250 pages in length.

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