In answer to the first part of the Deputy’s question, the accounting rules, including those related to declarations and payments of distributions that banks, in common with all companies, are governed by the Companies Act 2014. It is the responsibility of the Directors of the respective banks to ensure these rules have been properly applied.
The International Financial Reporting Standards (IFRSs) are issued by the International Accounting Standards Board (IASB). EU-endorsed IFRS form part of European law by virtue of the EU’s promotion of convergence of accounting standards at global level to ensure consistency and comparability in financial reporting across the EU. The IASB occasionally issues interpretations on IFRSs, as required.
In addition, to provide assurance that Directors of banks have applied the relevant accounting rules they are subject to an annual independent external audit review.? ?
Nothing has been brought to my attention to date to suggest that these rules have not been correctly applied by the banks. As the Deputy may be aware, as Minister for Finance, I have no role in the commercial decisions made by any bank in the State. This includes banks in which the State has a shareholding. The independence of banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally.
The requirement for Banks to prepare financial statements is laid out in the Companies Acts. The Director of Corporate Enforcement has widespread powers and functions in relation to potential breaches of the Companies Acts.?
Should the Deputy have concerns in this regard, she may wish to refer such concerns to the Irish Auditing and Accounting Supervisory Authority (IAASA) or the Department of Enterprise, Trade and Employment as the Companies Acts come under its remit.
