Financial Services Regulation

Dáil Éireann Debate, Tuesday - 18 February 2014

Tuesday, 18 February 2014

Ceisteanna (337)

Pearse Doherty

Ceist:

337. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation his views on whether an accounting policy (details supplied) may be interpreted by banks as an opportunity to delay the recognition of losses; and his further views on whether this is not in accordance with, IAS 8.10 which states that management must observe prudence when making a subjective judgement on the determination of whether a loss event has or has not occurred. [7785/14]

Freagraí scríofa

Minister for Jobs, Enterprise and Innovation

The “accounting policy” referred to in the Deputy’s question is in fact an extract from my reply of 28 January 2014 to question 328. Whether the matter to which it refers might be interpreted by banks in the manner suggested is a matter of conjecture.

International Financial Reporting Standards and International Accounting Standards, when adopted for use within the EEA in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards, constitute Union law with direct application to the entities that apply them. The interpretation of law is ultimately a matter for the Courts.