Revenue eBrief No. 135/19
Tax and Duty Manual Schedule 17A – Accounting Standards – has been updated to include a reference to the Finance Act 2017 amendment which inserted Section 76A(4) TCA 1997.
Schedule 17A is now effectively obsolete as companies are no longer permitted to use former ‘Generally Accepted Accounting Practices (GAAP) and therefore will no longer have transitional adjustments (except to the extent that companies are still ‘spreading’ the ‘transitional adjustments’).
However, Section 76A(4) TCA 1997 extends the principles enacted in Schedule 17A to changes of accounting framework involving a change from ‘International Financial Reporting Standards’ (IFRS) to current GAAP or vice versa.
The terms ‘spreading’ and ‘transitional arrangements’ are also explained in the guidance.