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Ongoing Financial Reporting and Reform
From Department of Public Expenditure, NDP Delivery and Reform
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The modernisation of public Financial Reporting and Accounting is a major reform project currently underway by the Department of Public Expenditure, National Development Plan Delivery and Reform. The background to this reform project stems from an OECD report assessing the central Government Accounting Framework.
The OECD Report Financial Reporting in Ireland (2019) builds upon earlier recommendations from the International Monetary Fund in 2013 and 2017. It identifies a road map for the implementation of financial reporting reforms including a move to accrual accounting.
The purpose of the OECD review and proposed reforms is to bring our financial reporting in line with best practice and International Accounting Standards.
A new Irish Central Government Accounting Framework is being developed and will form the basis for future financial reporting in government departments and offices.
The new overarching Irish Central Government Accounting Framework consists of the following 3 areas:
The Conceptual Framework establishes the underlying concepts that are to be applied in developing Central Government Accounting Standards (CGASs) and that are applicable to the preparation and presentation of general purpose financial statements (Financial Statements) for Irish Central Government Departments and Offices.
The framework sets out the objectives and the high level accounting principles for general purpose financial reporting in Ireland. It is based on the International Public Sector Accounting Standards (IPSAS) framework which has been adapted to meet the needs of financial reporting in the Irish setting.
As part of the Financial Reporting and Accounting Reforms, a set of Central Government Accounting Standards (CGAS) are being developed, based on the International Public Sector Accounting Standards (IPSAS) and adapted to the Irish context.
The IPSAS based standards to be used in the central government and offices, will be reviewed and adapted to meet the needs of the Irish Financial Reporting Framework. These standards will then be translated into policy documents, which will form the basis for the development of the Central Government Accounting Manual.
The first nine priority CGAS, which relate primarily to the Statement of Financial Position have been published and are available here.
The next phase of work will focus on presentation of financial statements, introduction of statements of revenue and expenditure and cash flows with supporting standards on revenue and notes to the financial statements.
As part of the Financial Reporting and Accounting Reform in Ireland, a Central Government Accounting Manual (CGAM) is being developed to provide guidance to preparers of Financial Statements within Central Government Departments and Offices on the implementation of the CGAS being introduced.
The manual will contain guidance on policy and worked examples around different accounting areas based on the relevant CGAS. Currently, it is being presented separately in relation to each CGAS introduced.
The CGAM supporting the published CGAS is available here.
An oversight group, the Standing Advisory Group (SAG), has been formed to provide advice to the Department of Public Expenditure, National Development Plan Delivery and Reform on the financial reporting and accounting reforms that are currently underway. The Group consists of professionals from the private, academic and government sectors.
The SAG provides independent expert advice on the accounting and financial reporting reforms, and on the application of financial reporting standards and principles across central Government Departments and Offices.
The Group have an important role in the provision of advice and guidance, as the detailed accounting policies are being developed, especially in any instance where Ireland might consider adaptions to the international standards, for example, to reflect our own constitutional and legal context.