A GUIDE TO THE FINANCIALREPORTING REQUIREMENTSof the EU Transparency Directive and to IAASA’s role under the Directive
IRISH AUDITING & ACCOUNTING SUPERVISORY AUTHORITY Údarás Maoirseachta Iniúchta & Cuntasaíochta na hÉireann
A GUIDE TO THE FINANCIAL REPORTING REQUIREMENTSof the EU Transparency Directive and to IAASA’s role under the Directive
MISSION
TO SUPPORT AND ENHANCE PUBLIC CONFIDENCE IN THE ACCOUNTANCY
PROFESSION AND IN FINANCIAL REPORTING THROUGH THE EXERCISE OF EFFECTIVE, INDEPENDENT OVERSIGHT AND THE PROMOTION OF ADHERENCE
TO HIGH STANDARDS
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IRISH AUDITING & ACCOUNTING SUPERVISORY AUTHORITY Údarás Maoirseachta Iniúchta & Cuntasaíochta na hÉireann
A GUIDE TO THE FINANCIAL REPORTING REQUIREMENTSof the EU Transparency Directive and to IAASA’s role under the Directive
Disclaimer 03
PurposeofthisGuide 05
PART I: FINANCIAL REPORTING REQUIREMENTS
OF THE EU TRANSPARENCY DIRECTIVE 07
01 TheEUTransparencyDirective-overview 09
02 TranspositionoftheDirectiveintoIrishlaw 11
03 ScopeoftheDirective 13
04 IssuerswhosehomeMemberStateisIreland 15
05 NumberofissuerslistedontheIrishStockExchange
whosehomeMemberStateisIreland 17
06 Periodicfinancialreportingrequirements
(forissuerswhosehomeMemberStateisIreland) 19
07 ExemptionsfromtheDirective’speriodicfinancialreportingrequirements 23
08 Effectivedateforcommencementoffinancialreportingrequirements 25
PART II: IAASA’S ROLE UNDER THE DIRECTIVE 27
09 ContextforIAASA’sinvolvementwiththeDirective 29
10 IAASA’sstatutoryfunctionsvis à vistheDirective 31
11 IAASA’sstatutorypowersvis à vistheDirective 33
12 Administrativesanctions 39
APPENDICES 43
01 Overviewofconsiderationsaffectingriskassessmentandselection 45
02 Interimmanagementreports 47
03 3rdcountryequivalencedeterminations 49
Glossary 51
CONTENTS
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DISCLAIMER
ThisGuidedoesnotconstitutelegaladviceoralegalinterpretationoftheTransparencyDirectiveorofanyaspectsofthelegislationimplementingtheDirectiveinIreland.ItisprimarilyconcernedwiththefinancialreportingrequirementsoftheDirectiveastransposedintoIrishlawandtheIrishAuditing&AccountingSupervisoryAuthority’sroleunderit.Therefore,thisGuidedoesnotdetailalltherequirementsoftheDirectiveastransposedintoIrishlaw,andisnotintendedasasubstituteforadetailedreviewoftheDirectiveanditsrelatedrequirements,includingthoserelatingtoperiodicfinancialreporting.WhereusersofthisGuideareuncertainregardingtheeffectofanylegalprovision,considerationshouldbegiventoobtainingindependentlegaladvice.
WhileeveryefforthasbeenmadetoensuretheaccuracyoftheinformationcontainedinthisGuide,theIrishAuditing&AccountingSupervisoryAuthorityacceptsnoresponsibilityorliabilityhowsoeverarisingfromanyerrors,inaccuraciesoromissionsoccurring.
TheIrishAuditing&AccountingSupervisoryAuthorityreservestherighttotakeaction,whichmayormaynotbeinaccordancewiththeprovisionsofthisGuide.
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PURPOSE OF THIS GUIDE
ThepurposeofthisGuide,whichisdividedintotwoParts,isto:
PartI:FinancialReportingRequirements
provideabriefoverviewoftheTransparencyDirectiveandthecontextforitsenactmentbytheEU;
provideasummaryofthemeansbywhichtheDirectivehasbeenimplementedinIrishlaw;
setoutthescopeoftheDirective,astransposedintoIrishlaw(i.e.thecategoriesofissuerscomingwithinscope)and,inparticular,toidentifythoseclassesofissuersforwhomIrelandisthe‘homeMemberState’;
provideinformationregardingthevariousperiodicfinancialreportingrequirementsoftheDirective,astransposedintoIrishlaw;
detailtheexemptionsfromtheDirective’speriodicfinancialreportingrequirements,astransposedintoIrishlaw;
setoutwhenissuers’variousperiodicfinancialreportingobligationstakeeffectundertheDirective,astransposedintoIrishlaw;
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PartII:TheIrishAuditing&Accounting SupervisoryAuthority’sRole
setthecontextfortheIrishAuditing&AccountingSupervisoryAuthority’s(IAASA)involvementwiththeDirectiveandprovideinformationregardingIAASA’sfunctionsandpowersundertheDirective,astransposedintoIrishlaw;and
provideanoverviewoftheadministrativesanctionsprocessapplyingtocontraventionsoftheDirective’srequirements,astransposedintoIrishlaw.
Inaddition,Appendix1providesinformationofageneralnatureregardingtheconsiderationsthatIAASAislikelytohaveregardtoinassessingtherisksattachingtoissuers’respectivefinancialreportsandtoselectingfinancialreportsforexamination.
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FINANCIAL REPORTING REQUIREMENTS OF THEEU TRANSPARENCY DIRECTIVE
Part I
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IRISH AUDITING & ACCOUNTING SUPERVISORY AUTHORITY Údarás Maoirseachta Iniúchta & Cuntasaíochta na hÉireann
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EUDirective2004/109/EC1-(theTransparencyDirective)(hereinafterreferredtoas‘theDirective’)wasadoptedbytheEuropeanParliamentandCouncilon15December,2004andcameintoeffectinIrelandfrom13June,2007.TheDirectiveisoneoftheelementsoftheEuropeanCommission’sFinancialServicesActionPlan(FSAP),thepurposeofwhichistocreateasingleEuropeancapitalmarket.TheDirectiveworksalongsideotherpiecesofFSAPlegislation,includingtheMarketAbuseandProspectusDirectives.
01 THE EU TRANSPARENCY DIRECTIVE - OVERVIEW
1 AvailableontheAuthority’swebsite(http://www.iaasa.ie).2 ‘EU’shouldbereadasincludingallEEAStatesi.e.EUMemberStatesandNorway,
IcelandandLiechtenstein.Similarly,‘MemberState’throughoutthisGuidemeansaMemberStateoftheEUoranEEAState.
TheDirectiveisconcernedwiththeharmonisationofinformationrequirementsapplyingtoentitieswhosesecuritieshavebeenadmittedtotradingonaregulatedmarketsituated,oroperating,withintheEU2.Specifically,theDirectiveseekstoenhancetransparencyinEUcapitalmarketsthroughacommonframeworkwhichrequires:
theproductionofperiodicfinancialreports;
shareholderstodisclosemajorshareholdings;
thedisseminationofregulatedinformation;and
theprovisionofcentralmechanismsforsharingregulatedinformation.
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TheDirectivehasbeentransposedintoIrishlawthroughacombinationofprimarylegislation(theInvestmentFunds,CompaniesandMiscellaneousProvisionsAct,2006)1(‘the2006Act’)andsecondarylegislation(theTransparency(Directive2004/109/EC)Regulations,20071(‘theRegulations’)).
2.1 InvestmentFunds,Companiesand MiscellaneousProvisionsAct,20063
Theprincipalprovisionsofthe2006Actofrelevanceinthiscontextare:
section20(1),whichconfersupontheMinisterforEnterprise,Trade&Employment(‘theMinister’)4thepowertomakeRegulationsforthepurposeofgivingeffecttotheDirective;
section20(2),whichpermitstheMinister,inmakingRegulations,to:
createoffences;and
createcivilliabilityinrespectofcontraventionsoftheRegulationssoastoenableanypersonsufferinglosstorecovercompensationforthatloss5;
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section21,whichprovidesthatapersonguiltyofanoffencecreatedbyRegulationsshallbeliable,onconvictiononindictment,toafinenotexceeding€1,000,000orimprisonmentforatermnotexceeding5years;and
section22,whichprovidesthatthecentralcompetentadministrativeauthorityforDirectivepurposes(i.e.theCentralBankandFinancialServicesAuthorityofIreland)(‘theBank’)6maymakeRulesforspecifiedpurposes.
2.2 Transparency(Directive2004/109/EC) Regulations,2007
TheRegulations,whicharemadeundertheauthoritygrantedbysection20(1)asdetailedabove,containthedetailedprovisionsfortransposingtheDirective,relevantaspectsofwhicharesetoutinthisGuide.
2.3 Otherrequirements Inadditiontotheaforementionedpiecesoflegislation,
partiesaffectedbytheDirectiveanditsrequirementsshouldalsohaveregardto:
(i) CommissionDirective2007/14/ECof8March,2007(‘theImplementingDirective’)1&7;and
(ii) InterimTransparencyRulesissuedbytheFinancialRegulator(‘theTransparencyRules’)8.
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02 TRANSPOSITION OF THE DIRECTIVE INTO IRISH LAW
3 Otherrelevantprovisionsofthe2006Act,i.e.thoserelatingtoIAASA’sfunctionsandpowers,aresetoutinsections10&11ofthisGuide.
4 TheGovernmenthasdelegatedallMinisterialfunctionsprovidedforbytheCompanies(AuditingandAccounting)Act,2003totheMinisterforTrade&Commerce.ThisdelegationwaseffectedbytheEnterprise,TradeandEmployment(DelegationofMinisterialFunctions)(No.2)Order2007(StatutoryInstrumentNo.560of2007).
5 CivilliabilitymayonlybecreatedinrespectofcontraventionsofRegulationsthatinvolveeither(i)anuntrueormisleadingstatement;or(ii)theomissionfromastatementofanymatterrequiredtobeincludedthereinbeing,ineithercase,astatement(i)thatiscontainedinapublicationmadeinpurportedcompliancewithaprovisionoftransparencylaw;and(ii)inrespectofwhichapersonsufferslossbyreasonofthepersonacquiring,
orcontractingtoacquire,securities(oraninterestinthem)inrelianceonthatpublicationatatimewhen,andincircumstancesinwhich,itwasreasonableforthatpersontorelyonthatpublication;andthefollowingconditionisfulfilledinrespectofthatpublication,i.e.thepersondischargingresponsibilitieswithintheissuerinrelationtothepublication(i)knewthestatementconcernedtobeuntrueormisleadingorwasrecklessastowhetheriswasuntrueormisleading;or(ii)knewtheomissionconcernedtobedishonestconcealmentofamaterialfact(Sections20(3)and(4)refer).
6 TheBankisdesignatedasthecentralcompetentadministrativeauthoritybyRegulation36(1).Section33C(1)oftheCentralBankAct1942,asamendedbySection34ofthe2006Act,providesthattheIrishFinancialServicesRegulatoryAuthority(“theFinancialRegulator”)isresponsibleforperformingthefunctionsoftheBankundertheTransparencyRegulations.TheFinancialRegulatorisaconstituentpartoftheBank.
7 RelevantaspectsoftheImplementingDirectivearereflectedintheRegulations.8 Madeundertheauthoritygrantedbysection22ofthe2006Act.
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2.4 RespectiveresponsibilitiesofvariousauthoritiesundertheRegulations
TheBankisthecentralcompetentadministrativeauthorityfortheimplementationoftheRegulations.IthaschosentodelegatecertainofitsfunctionstotheIrishStockExchange(ISE),includingthemonitoringofissuersforcompliancewiththeirgeneralobligationsundertheRegulationsandtheTransparencyRules.
UndertheRegulations,IAASAisthedesignatedcompetentauthorityforexaminingwhethertheannualandhalf-yearlyfinancialreportsofcertainentitieshavebeendrawnupinaccordancewiththerelevantreportingframework.Moreover,IAASAhasbeenconferredwithpowerstotakeappropriatemeasuresincasesofsuspectedinfringements9.
9 SeePartIIofthisGuideforfurtherdetails.
WhereabreachoftheRegulationswouldconstituteacriminaloffenceandsuchabreachissuspected,theinvestigationofsuchasuspectedbreachisamatterfortheDirectorofCorporateEnforcement,whosestatutoryfunctionsincludetheenforcementofcriminalbreachesoftheCompaniesActs.Section31oftheCompanies(AuditingandAccounting)Act,2003(‘the2003Act’)providesamechanismwherebyIAASAcanshareinformationwiththeDirectorofCorporateEnforcement.
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fromtherequirementsoftheDirectiveastheISEhasnotdesignatedtheIEXasaRegulatedMarket.Notwithstandingtheforegoing,section24ofthe2006ActprovidesthattheMinistermayprovidethatoneormoreprovisionsoftransparency(regulatedmarkets)lawthatapplyinrelationtoaregulatedmarketmaybeappliedtoamarketotherthanaregulatedmarket.
3.3 IssuersoutsideoftheDirective’sscope TheDirectivedoesnotapplytounitsissuedbyopen-
endedinvestmentfundsor,asnotedabove,toissuerswhosesecuritieshavebeenadmittedtotradingonanunregulatedmarket.Inaddition,certainclassesofissuersareexemptedfromcertainaspectsoftheDirective.FurtherdetailsregardingexemptionsinrespectoftheperiodicfinancialreportingrequirementsoftheDirectivearegiveninsection7ofthisGuide.
3.1 Scope TheDirectiveappliestoentitieswhosesecuritiesare
admittedtotradingonaregulatedmarket,situated,oroperating,withintheEU(hereinafterreferredtoas‘issuers’).‘Securities’inthecontextoftheDirectiveincludes:
shares;
bondsorotherformsofsecuritiseddebt;
derivativesecurities;and
unitsissuedbyclosed-endinvestmentfunds.
3.2 ‘RegulatedMarket’ Theterm‘RegulatedMarket’referstoamarketas
definedbyArticle4(1),point14,ofDirective2004/39/EC(MarketsinFinancialInstrumentsDirective(‘MiFID’)),i.e.‘A multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments - in the system and in accordance with its nondiscretionary rules - in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title III’.
InanIrishcontext,thevastmajority10ofsecuritiestradingontheOfficialListoftheISEaretradedontheExchange’sregulatedmarket.SecuritieslistedontheIrishEnterpriseExchange(‘IEX’)areexempt
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03 SCOPE OF THE DIRECTIVE
10 WhiletheAlternativeSecuritiesMarket(‘ASM’)ispartoftheOfficialListoftheIrishStockExchange,securitieslistedontheASMarenottradedonaregulatedmarket,asdefinedbytheDirective.
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Theconceptof‘homeMemberState’isrelevantforthepurposesofidentifying:
theMemberStatetowhosetransparencylawanissuerissubject;and
thecompetentauthority(ies)responsiblefortheongoingsupervisionofissuers’adherencetotheDirective’srequirements.
HomeMemberStateisdefinedintheRegulationsas:
‘(a) in the case of an issuer of debt securities the denomination per unit of which is less than €1,000 or an issuer of shares:
(i) if the issuer is incorporated or formed in a Member State, the Member State in which it has its registered office,
(ii) if the issuer is incorporated or formed in a state or territory which is not a Member State, the Member State in which it is required to file the annual information with the competent authority in accordance with Article 10 of Directive 2003/71/EC12 of the European Parliament and of the Council of 4 November 2003, and
(b) in the case of an issuer of debt securities not falling within paragraph (a), the Member State chosen by the issuer from among the Member State in which the issuer has its registered office and those Member States which have admitted its securities to trading on a regulated market on their territory’13.
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Inotherwords,IrelandishomeMemberStateforthefollowing:
(i) issuersofsharesthatareincorporatedorformedinaMemberStateandwhichhavetheirregisteredofficeinIreland;
(ii) issuersofshares-thatareincorporatedorformedinastateorterritorywhichisnotaMemberState-thatarerequiredtofileanannualinformationdocumentwiththeBankinaccordancewithArticle10oftheProspectusDirective;
(iii) issuersofdebtsecurities-thedenominationperunitofwhichislessthan€1,000-thatareincorporatedorformedinaMemberStateandwhichhavetheirregisteredofficeinIreland;
(iv) issuersofdebtsecurities-thedenominationperunitofwhichislessthan€1,000andthatareincorporatedorformedinastateorterritorywhichisnotaMemberState-thatarerequiredtofileanannualinformationdocumentwiththeBankinaccordancewithArticle10oftheProspectusDirective;and
(v) issuersofdebtsecurities-thedenominationperunitofwhichis€1,000orgreater-whohavechosenIrelandastheirhomeMemberStatefromamongtheMemberStateinwhichtheyhavetheirregisteredoffice(whereapplicable)andthoseMemberStateswhichhaveadmittedtheirsecuritiestotradingonaregulatedmarketontheirterritory14.
04 ISSUERS WHOSE HOME MEMBER STATE IS IRELAND11
11 Referencesto‘Ireland’inthisGuiderefertotheRepublicofIreland12 TheProspectusDirective13 Regulation2
14 Regulation35(andArticle2oftheImplementingDirective)requiresthatsuchissuersdisclosethatchoiceinaccordancewithPart7oftheRegulations-‘DisseminationofInformation’.
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OnthebasisofdataprovidedbytheISE,thefollowingisthenumberofissuerslistedontheOfficialListoftheISEasatthedateofthepublicationofthisGuide,whosehomeMemberStateisIreland.AsatthedateofpublicationofthisGuide,accuratedataisnotavailableregardingthenumberofissuerswhosehomeMemberStateisIrelandbutwhosesecuritieshavebeenadmittedtotradingonanEUregulatedmarketotherthantheISE.EuropeansecuritiesregulatorsareseekingtoestablishsuchdatainrespectofeachMemberState.
Table�: NumberofissuerslistedontheISE whosehomeMemberStateisIreland
05 NUMBER OF ISSUERS LISTED ON THE IRISH STOCK EXCHANGE WHOSE HOME MEMBER STATE IS IRELAND
Equityissuers 36
Closedendedfunds 74
Debtissuers 225
Total ���
Category of issuer No. of Issuers
Source:ISE
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TheDirective’sfinancialreportingrequirementsregardingthepublication,timing,content,andapplicablefinancialreportingframeworkofissuers’financialreports,asprovidedforbytheRegulationsandtheTransparencyRules,aredetailedhereunder.
6.1 Annual financial reports15 Issuersarerequiredtomaketheirannualfinancial
reportspublicnolaterthanfourmonthsaftertheendoftheirfinancialyearsandtoensurethatthosefinancialreportsremainpubliclyavailableforatleastfiveyearsthereafter.Anissuer’sannualfinancialreportshallcomprise,ataminimum:
auditedfinancialstatements;
amanagementreport;and
statementsmadebypersonsresponsiblewithintheissuertotheeffectthat,tothebestoftheirknowledge,thefinancialstatements,preparedinaccordancewithapplicableaccountingstandards,giveatrueandfairviewoftheprofit/lossandassets,liabilitiesandfinancialpositionoftheissuerandtheundertakingsincludedintheconsolidationtakenasawhole,andthatthemanagementreportincludesafairreviewofthedevelopmentandperformanceofthebusinessandpositionoftheissuerandtheundertakingsincludedintheconsolidationtakenasawhole,togetherwithastatementoftheprincipalrisksanduncertaintiesthattheyface.
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AccordingtoRegulation4(4),whereanissuerisrequiredtoprepareconsolidatedfinancialstatements:
theauditedfinancialstatementsmustbepreparedinaccordancewiththeIASRegulation16;and
theparententity’sfinancialstatementsmustbepreparedinaccordancewiththenationallawoftheMemberStateinwhichtheparentisincorporated.
Ifanissuerisnotrequiredtoprepareconsolidatedfinancialstatements,theauditedfinancialstatementsmustbepreparedinaccordancewiththenationallawoftheMemberStateinwhichtheissuerisincorporated17.
Regulation5(2)requiresthattheauditreport,signedbythepersonorpersonsresponsibleforauditingthefinancialstatements,shouldbedisclosedinfulltothepublictogetherwiththeannualfinancialreport.
TheTransparencyRules15outlinethemoredetailedrequirementsregardingthecontentofthereviewtobeincludedinissuers’annualmanagementreports,includingtherequirementthatreportsbeabalancedandcomprehensiveanalysis-usingkeyperformanceindicators-ofthedevelopmentandperformanceduringtheyearandpositionofthebusinessatyearend,consistentwiththeissuer’ssizeandcomplexity.InaccordancewiththeTransparencyRules,reviewsshouldalsoincludereferenceto:
importanteventsafterthebalancesheetdate;
likelyfuturedevelopments;
researchanddevelopmentactivity;
certaininformationconcerningacquisitionsofownshares;
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06PERIODIC FINANCIAL REPORTING REQUIREMENTS (FOR ISSUERS WHOSE HOME MEMBER STATE IS IRELAND)
15 Article4oftheDirective,Regulations4,5andRule6.1oftheTransparencyRules16 EURegulation(EC)No.1606/2002,whichwasimplementedinIrishlawbyS.I.116of2005-EuropeanCommunities(InternationalFinancialReportingStandardsandMiscellaneousAmendments)Regulations,2005(acopyofwhichcanbeaccessedontheAuthority’swebsiteathttp//www.iaasa.ie).
17 Regulation4(4)(b)
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existenceofanybranches;and
whereanissuerusesfinancialinstruments,informationaboutfinancialriskmanagementobjectivesandpoliciesandissuers’exposuretocertainrisks.
6.2 Half-yearly financial reports18
Issuersofsharesordebtsecurities19arerequiredtomakepublichalf-yearlyfinancialreports(coveringthefirstsixmonthsoftheirfinancialyears)assoonaspossibleaftertheendoftherelevantperiod,butnotlaterthantwomonthsthereafter20.Similartotherequirementregardingannualfinancialreports,issuersarealsorequiredtoensurethatthesehalf-yearlyfinancialreportsremainpubliclyavailableforatleastfiveyearsafterpublication.
Half-yearlyfinancialreportsshallcomprise,ataminimum:
acondensedsetoffinancialstatements;
aninterimmanagementreport21;and
statementsmadebypersonsresponsiblewithintheissuertotheeffectthat,tothebestoftheirknowledge,thecondensedfinancialstatements,preparedinaccordancewithapplicableaccountingstandards,giveatrueandfairviewoftheprofit/lossandassets,liabilitiesandfinancialpositionoftheissuer,ortheundertakingsincludedintheconsolidationasawhole,andthattheinterimmanagementreportincludesafairreviewof:
importanteventsthathaveoccurredduringthefirstsixmonthsoftheyear;
theimpactofthoseeventsonthecondensedfinancialstatements;
adescriptionoftheprincipalrisksanduncertaintiesfortheremainingsixmonthsofthefinancialyear;and
forissuersofshares,detailsofmaterialrelatedpartytransactions.
Whereahalf-yearlyfinancialreportisaudited,orreviewedinaccordancewithAuditingPracticeBoard(APB)standardsorguidance22,theauditreportor
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reviewreportmustbereproducedinfull.Whereahalf-yearlyfinancialreporthasnotbeenauditedorreviewed,anissuermustmakeastatementtothiseffectinitshalf-yearlyreport23.
6.2.1 Requirementsregardingthecontentofcondensed financial statements
Forallissuersproducinghalf-yearlyfinancialreports,TransparencyRule6.2requiresthattheaccountingpoliciesandpresentationappliedareconsistentwiththoseappliedinthelatestpublishedannualfinancialstatementsunless:
‘(1) the accounting policies and presentation are to be changed in the subsequent annual financial statements, in which case the new accounting policies and presentation should be followed and the changes and the reasons for the changes shall be disclosed in the half-yearly report; or
(2) the Financial Regulator otherwise agrees.’
Whereanissuerisrequiredtoproduceconsolidatedfinancialstatements,thecondensedsetoffinancialstatementsmustbepreparedinaccordancewiththeIASRegulation.Wheretheissuerisnotrequiredtoprepareconsolidatedfinancialstatements,thecondensedsetoffinancialstatementsmustatleastinclude:
acondensedbalancesheet;
acondensedprofitandlossaccount;and
explanatorynotes24.
TheRegulationsfurtheroutlinecertainrequirementsthatapplytoissuersthatarenotrequiredtoprepareconsolidatedfinancialstatements25,viz:
‘In preparing the condensed balance sheet and the condensed profit and loss account an issuer shall follow the same principles for recognition and measuring as when preparing annual financial reports;
The condensed balance sheet and condensed profit and loss account shall show each of the headings and subtotals included in the most recent annual financial statements of the issuer. Additional line items shall be included if, as a result of their omission, the half-yearly financial statements would
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18 Article5oftheDirective,Regulations6to8,Rule6.2and6.3oftheTransparencyRulesandArticles3and4oftheImplementingDirectiverefer.
19 Seesection7.2ofthisGuidefordetailsofexemptionsavailabletocertaindebtissuersfromhalf-yearlyreportingrequirements.
20 Whereanissuerchangesitsaccountingreferencedatesothattheaccountingperiodisextendedtomorethan14months,TransparencyRule6.3requirestheissuertoprepareandpublishasecondinterimreport.
21 SeeAppendix2fordetailsofwhatshouldbecontainedintheInterimManagementReport(Regulations8(2)and8(3)),includingdetailsrelatingtoRelatedPartyDisclosures(Regulation8(3)).
22 TherelevantAPBdocumentisentitled‘International Standard on Review Engagements (UK and Ireland) 2410: Review of Interim Financial Information performed by the Independent Auditor of the Entity’.
23 Regulation8(4)24 Regulation7(2)25 Regulation7(3)andArticle3oftheImplementingDirective
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give a misleading view of the assets, liabilities, financial position and profit or loss of the issuer;
The half-yearly financial information shall include comparative information presented as follows:
(i) balance sheet as at the end of the first 6 months of the current financial year and comparative balance sheet as at the end of the immediate preceding financial year; and
(ii) profit and loss account for the first 6 months of the current financial year with, from 2 years after 29th March 2007, comparative information for the comparable period for the preceding financial year.
The explanatory notes shall include the following:
(i) sufficient information to ensure the comparability of the condensed half-yearly financial statements with the annual financial statements; and
(ii) sufficient information and explanations to ensure users’ proper understanding of any material changes in amounts and of any developments in the half-year period concerned, which are reflected in the balance sheet and the profit and loss account.’
6.2.2 ‘Trueandfairview’inthecontextofcondensed financial statements
Regulation8(5)(d)providesthatapersonmakingaresponsibilitystatementshallberegardedassatisfyingtherequirementtoconfirmthat,tothebestoftheirknowledge,thecondensedfinancialstatements,whichhavebeenpreparedinaccordancewiththeapplicablesetofaccountingstandards,giveatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossbyincludingastatementtotheeffectthatthecondensedsetoffinancialstatementshavebeenpreparedinaccordancewith:
(i) theinternationalaccountingstandardapplicabletointerimfinancialreporting,currentlyIAS34‘Interim Financial Reporting’;or
(ii) forIrishissuers26notusingIFRS,pronouncementsonhalfyearlyreportsasissuedbytheAccountingStandardsBoard(ASB),currentlyaStatemententitled‘Half-Yearly Financial Reports’;or
(iii) forallotherissuersnotusingIFRS,anationalaccountingstandardrelatingtointerimreporting,
providedalwaysthatapersonmakingsuchastatementhasreasonablegroundstobesatisfiedthatthecondensedsetoffinancialstatementspreparedinaccordancewithsuchastandardisnotmisleading.
Inthecontextoftheforegoing,itshouldbenotedthat,inaccordancewiththeprovisionsofRegulation8(5)(e),theapplicationof‘trueandfair’assetoutaboveregardingcondensedfinancialstatementshasnoeffectontheinterpretationofthetrueandfairviewforannualfinancialstatements.
6.3 InterimManagementStatements27
Issuerswhosesharesareadmittedtotradingonaregulatedmarketarerequiredtoproduceinterimmanagementstatements:
duringthefirstsixmonthperiodofthefinancialyear;and
duringthesecondsixmonthperiodofthefinancialyear.
Interimmanagementstatementsshallcontainanexplanationofmaterialeventsandtransactionsthathavetakenplaceduringtherelevantperiodandtheimpactofsuchmaterialeventsandtransactionsonthefinancialpositionoftheissueranditscontrolledundertakings,andageneraldescriptionofthefinancialpositionandperformanceoftheissueranditscontrolledundertakingsduringtherelevantperiod.
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26 ‘Irishissuers’inthiscontextreferstoissuersincorporatedintheStateaspubliclimitedcompanies(withinthemeaningoftheCompanies(Amendment)Act,1983)(Regulation8(5)(f)).
27 Article6oftheDirectiveandRegulation9
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Article8oftheDirectiveprovidesanumberofexemptionsfromtheDirective’speriodicfinancialreportingrequirements.Theprincipaloftheseexemptions,asimplementedbytheRegulations,areasfollows:
7.1 Exemption from all periodic financial reportingrequirements
Thefollowingclassesofissuersareexemptfromalloftheperiodicfinancialreportingrequirementsoutlinedinsections6.1to6.3(i.e.annualfinancialreports,half-yearlyfinancialreportsandinterimmanagementstatements):
issuersthatissueexclusivelydebtsecuritiesadmittedtotradingonaregulatedmarket,thedenominationperunitofwhichisatleast€50,000,oranequivalentamountifdenominatedinacurrencyotherthanEuro(commonlyreferredtoaswholesaledebtissuers)28;and
aState,regionalorlocalauthorityofaState,apublicinternationalbodyofwhichatleastoneMemberStateisamember,theEuropeanCentralBankandMemberStates’nationalcentralbankswhetherornottheyissuesharesorothersecurities29.
7.2 Exemptionfromrequirementstoproducehalf-yearly financial reports
Thefollowingareexemptfromthehalf-yearlyfinancialreportingrequirementsoftheDirective,asoutlinedinsection6.2:
issuersofdebtsecuritieswhichwereadmittedtotradingonaregulatedmarketinaMemberStatebefore1January,2005,providedthat
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07 EXEMPTIONS FROM THE DIRECTIVE’S PERIODIC FINANCIAL REPORTING REQUIREMENTS
thehomeMemberStatehasallowedsuchissuerstobenefitfromtheprovisionsofArticle27ofDirective2001/34/EC(‘theConsolidatedAdmissionsandReportingDirective’).Thisexemptionhaseffectfor10yearsfrom1January,200530;
issuersalreadyexistingatthedateoftheentryintoforceoftheProspectusDirective(i.e.31July,2005)andwhichexclusivelyissuedebtsecuritiesunconditionallyandirrevocablyguaranteedbytheStateorbyoneofitsregionalorlocalauthorities31;
creditinstitutionswhosesharesarenotadmittedtotradingonaregulatedmarketandwhohave,inacontinuousorrepeatedmanner,onlyissueddebtsecuritiesprovidedthat:
thetotalnominalamountofallsuchdebtsecuritiesremainsbelow€100,000,000;and
thecreditinstitutionhasnotpublishedaprospectusinaccordancewiththeProspectusDirective32.
Itshouldbenotedthattheaforementionedclassesofissuersarenot,however,exemptfromtheannualfinancialreportingrequirementsasdetailedatsection6.1.
7.3 Exemption from periodic financial reporting requirementsthroughequivalence33
7.3.1 Equivalence-overview Anissuer:
whoseregisteredofficeisinanonMemberState(i.e.a3rdcountry);and
whosehomeMemberStateisIreland,
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28 Regulation10(2)(a)29 Regulation10(1)30 Regulation79(2)31 Regulation10(2)(c)
32 Regulation10(2)(b)33 Article23oftheDirective,Regulation11,Rule11.1oftheTransparencyRulesandArticles13to18oftheImplementingDirective
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andwhowouldotherwisebesubjecttotheperiodicfinancialreportingrequirementsoftheDirective,maybeexemptedbytheBankfromhavingtocomplywiththoserequirementsprovidedthat:
thelawofthe3rdcountryinquestionlaysdownequivalentrequirements;or
suchanissuercomplieswiththerequirementsofthelawofa3rdcountrythattheBankconsidersasbeingequivalenttothoselaiddownbytheDirective.
Appendix3setsoutfurtherdetailregardingthoseprovisionsoftheRegulationsdealingwiththecriterianecessaryforanequivalencedetermination.
7.3.2 Effectona3rdcountryissuerofanequivalencedeterminationbytheBank
WhereanissuerisgrantedanexemptionfromthefinancialreportingrequirementsoftheDirectivebytheBankonthebasisofanequivalencedetermination,theissuerisneverthelessrequiredtodisseminateitsannualandhalf-yearlyfinancialreportsandinterimmanagementstatementsandtofilethesewiththeBank.
7.3.3 Equivalence-transitionalprovisions Bywayoftransitionalprovisions,theEuropean
CommissionadoptedtwomeasuresinDecember,200634,theeffectofwhichistoallowatwo-yeartransitionalperiod(i.e.untilJanuary,2009)duringwhichtime3rdcountryissuersmaycontinuetopreparetheirannualconsolidatedfinancialstatementsandhalf-yearlyconsolidatedfinancialstatementsforDirectivepurposesinaccordancewith3rdcountryGAAPprovidedthatoneofthefollowingapply:
thenotestothefinancialstatementscontainanexplicitandunreservedstatementofcompliancewithIFRSinaccordancewithIAS1PresentationofFinancialStatements;
thefinancialstatementsarepreparedinaccordancewithCanadian,JapaneseorUSGAAP;or
thefinancialstatementsarepreparedusinga3rdcountryGAAPinrelationtowhichthefollowingconditionsaremet:
the3rdcountrystandardsettingauthorityresponsibleforsettingthat
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GAAPhasmadeapubliccommitmenttoconvergeitsstandardswithIFRS;and
thatstandardsettingauthorityhasestablishedaworkprogrammewhichdemonstratesprogresstowardsconvergencewithIFRSbefore31December2008;and
theissuerprovidessatisfactoryevidencetotheBankdemonstratingthattheconditionsabovehavebeenmet.
Afurthertransitionalprovisionisprovidedforanissuerofdebtsecuritiesthatisincorporatedina3rdcountry,whosehomeMemberStateisIreland,andwhosedebtsecuritieswereadmittedtotradinginaMemberStatepriorto1January200535.SuchanissuerneednotdrawupitsannualfinancialstatementsinaccordancewithRegulation4(4)(asdescribedinsection6.1),oritsmanagementreportinaccordancewithRegulation5(3)36,providedthat:
theannualfinancialstatementsgiveatrueandfairviewoftheassetsandliabilities,financialpositionandresults;
the3rdcountryhasnotmademandatorytheapplicationofIAS/IFRS;and
theEUCommissionhasnottakenanydecision,inaccordancewiththeprovisionsoftheDirective,astowhetherthereisanequivalencebetweenIAS/IFRSandtheaccountingstandardslaiddowninthe3rdcountryortheaccountingstandardsofanother3rdcountrythatsuchanissuerhaselectedtocomplywith.
7.3.4 Maintenanceoflistof3rdcountriesdeterminedtobeequivalent
TheBankwillmaintainapublishedlistof3rdcountriesthathavebeendeterminedasbeingequivalent37.
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34 CommissionRegulation1787/2006of4December,2006amendingCommissionRegulation809/2004onprospectusesandCommissionDecision2006/891/ECof4December2006ontheusebythirdcountryissuersofsecuritiesofinformationpreparedunderinternationallyacceptedaccountingstandards(’theTransparencyDecision’).
35 Regulation79(5)36 Regulation5(3)requiresthatthemanagementreportisdrawnupinaccordancewithArticle36ofthe7thCouncilDirective83/349/EEC(wheretheissuerisrequiredtoprepareconsolidatedaccounts)andArticle46ofthe4thCouncilDirective78/660/EEC(wheretheissuerisnotrequiredtoprepareconsolidatedaccounts).
37 Guidance11.0.1oftheTransparencyRules
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Forissuerswhosefinancialyearcommencesonorafter20January,2007,theDirective’sfinancialreportingrequirementstakeeffectimmediately.Accordingly,suchissuersarerequiredtopreparetheirfirstsetofhalf-yearlyfinancialreportstotheperiodended6monthsfollowingthecommencementoftheirfinancialyear38.
Inthecaseofthoseissuerswhosefinancialyearcommencedpriorto20January,2007,theDirective’sfinancialreportingrequirementstakeeffectfromthecommencementoftheirnextfinancialyear.
Asaconsequenceoftheforegoing,issuerswhosefinancialyearcommencesonorafter20January,2007willberequiredtocomplywiththenewreportingrequirementsearlierthanthosewhosefinancialyearcommencedpriorto20January,2007.
Thefollowingtableillustrates,bywayofexample,theapplicationofthehalf-yearlyandannualfinancialreportingrequirementstoissuerswhosefinancialyearcommencesbeforeandafter20January,2007respectively.ItshouldbenotedthatthetableacrossdoesnotconsidereffectivedatesofthefinancialreportingrequirementsrelatingtoInterimManagementStatements,asthelatterdonotcomewithinIAASA’sremit(asexplainedfurtherinsection10.2ofthisGuide).
08 EFFECTIVE DATE FOR COMMENCEMENT OF FINANCIAL REPORTING REQUIREMENTS
38Regulation79
First application ofhalf-yearly reportingrequirement
Issuer whoseFinancial Year
begins on 1January, 2007
Issuer whoseFinancial Year
begins on 1March, 2007
First application ofannual reportingrequirement
6monthsto30June,2008
Yearending31December,
2008
6monthsto31August,2007
Yearending29February,
2008
Table�:Effective dates of financial reporting requirements
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Part IIIAASA’S ROLE UNDER THE DIRECTIVE
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09
AsalludedtoearlierinthisGuide,theBankisthecentralcompetentadministrativeauthorityforthepurposesoftheDirectiveinIreland.However,theDirectiveprovidesthatMemberStatesmaydesignateanothercompetentauthorityotherthantheircentralcompetentadministrativeauthorityforthepurposesofexaminingfinancialinformationpublishedpursuanttotheDirective’srequirements39.Inthatcontext,havingregardtoIAASA’sfinancialreportingsupervisionfunctionsundersection26ofthe2003ActandhavingconsultedwithIAASA,theMinistertookthedecisionthatIAASAshouldbedesignatedasanindependentcompetentauthorityforthepurposesofArticle24(4)(h)40oftheDirective.TheMinister’sdecisioninthisregardwasgiveneffecttobyRegulation36(2).
39 RecitalNo.28oftheDirectivestatesthat:‘A single competent authority should be designated in each Member State to assume final responsibility for supervising compliance with the provisions adopted pursuant to this Directive, as well as for international co-operation…Member States may, however, designate another competent authority for examining that information referred to in this Directive is drawn up in accordance with the relevant reporting framework and taking appropriate measures in case of discovered infringements; such an authority need not be of an administrative nature.’
CONTEXT FOR IAASA’s INVOLVEMENT WITH THE DIRECTIVE
40 Article24(4)(h)oftheDirectiveprovidesthat‘Each competent authority shall have all the powers necessary for the performance of its functions. It shall at least be empowered to…examine that information referred to in this Directive is drawn up in accordance with the relevant reporting framework and take appropriate measures in case of discovered infringements.’
FurtherinformationregardingIAASAanditsotheractivitiescanbeaccessedatwww.iaasa.ie.
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IAASA’sstatutoryfunctionsvis à vistheDirectivestemfromtwosources,viz:
the2003Act(asamended);and
theRegulations.
10.1 Statutoryfunctions-relevantprovisionsofthe2003Act(asamendedbythe2006Act)
IAASA’sprincipalstatutoryfunctionsaresetoutinsection9ofthe2003Act41.Section16ofthe2006Actamendssection9ofthe2003Actbyinsertinganewfunction,viz:
‘(ma) to perform the functions conferred on it by transparency…law [i.e.theRegulations]…in respect of the matters referred to in Article 24(4)(h)40 of the Transparency Directive…’
10.2 Statutoryfunctions-relevantprovisionsoftheRegulations
Furthertotheforegoing,Regulation36(2)providesthat‘IAASA is designated as the competent authority for the purposes of subparagraph (h) of Article 24(4) of the Directive and shall be responsible for carrying out the obligations provided for in that subparagraph and for ensuring that the provisions adopted pursuant to the Directive in respect thereof are applied’.
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Regulation42(2)providesthat‘IAASA shall examine information drawn up pursuant to Regulations 4 to 8[i.e.annualandhalf-yearlyfinancialreports] by issuers whose home member State is the State for the purpose of considering whether such information is in accordance with the relevant reporting framework’.
Inthecontextoftheforegoing,itshouldbenotedthatIAASAdoesnothavearoleinreviewingissuers’InterimManagementStatements42.Responsibilityformonitoringissuers’compliancewiththeInterimManagementStatementprovisionsoftheRegulations(i.e.preparationandfilingofsame)resideswiththeBank.
10 IAASA’s STATUTORY FUNCTIONS VIS À VIS THE DIRECTIVE
41 Thetextofthe2003ActcanbeaccessedontheAuthority’swebsiteathttp://www.iaasa.ie/legislation/index.htm
42 DuetothefactthatitisnotmandatoryforInterimManagementStatementstocontainaccountingstatementsdrawnupinaccordancewitharelevantreportingframework
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11 IAASA’s STATUTORY POWERS VIS À VIS THE DIRECTIVE
IAASA’sstatutorypowersvis à vis theDirectivestemfromtwosources,viz:
the2003Act(asamended);and
theRegulations.
11.1 Statutorypowers-relevantprovisionsofthe2003Act(asamended)
IAASA’sgeneralstatutorypowersaresetoutinsection10ofthe2003Act.Ofparticularrelevancearethefollowingprovisions:
IAASAhasthepowertodoanythingthatappearstoittoberequisite,advantageousorincidentalto,ortofacilitate,theperformanceofitsfunctionsandthatisnotinconsistentwithanyenactment43;
apowerconferredbysection10(1)ofthe2003Actisnottobeconsideredtobelimitedmerelybyimplicationfromanotherprovision,whetherofthe2003ActoranyotherAct,thatconfersapoweronIAASA44;and
IAASAmayadoptRulesandissueGuidelinesconcerninganymatterthatrelatestoitsfunctionsorpowers45.
Section17ofthe2006Actamendssection10ofthe2003Actinthefollowingways:
byamendingsubsection(4),therebyprovidingthatIAASAmayapplytotheHighCourt(‘theCourt’)foranorderundersection29(7)(ofthe2003Act)compellingapersononwhomarelevantobligationorobligationsisorareimposedtocomplywiththatobligationorthoseobligationsif,intheAuthority’sopinion,thatpersonmayfailorhasfailedtocomplywiththeobligationorobligations;
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byinsertinganewsubsection(5),whichprovidesthat‘In subsection (4), the reference to a relevant obligation or obligations that is or are imposed on a person is a reference to an obligation or obligations that is or are imposed on a person by:
(a) provisions of transparency…law [i.e.theRegulations]…that implement Article 24(4)(h) of the Transparency…Directive, or
(b) rules adopted by the Supervisory Authority [i.e.IAASA] under subsection (3) concerning matters that relate to its functions under section 9(2)(ma)[ofthe2003Act]46’.
Section18ofthe2006Actamendssection29ofthe2003Act,therebyprovidingthat,onapplicationbyIAASAforanorderseekingcompulsiontocomplywithanobligationorobligationsundersection10(4)ofthe2003Act,theCourtmaymakeanyorderorgiveanydirectionitthinksfit.
11.2 Statutorypowers-relevantprovisionsoftheRegulations
IAASA’spowersaresetoutinPart9oftheRegulations.
11.2.1Generalpowersandlimitationsthereon(Regulation42)
Regulation42(1)providesthat‘IAASA shall have all the powers necessary for the performance of its functions under Regulation 36(2)47.Regulation42(3)providesthat‘The powers provided for in this Part in respect of IAASA shall not be exercised in a manner or for a purpose inconsistent with the Directive or[theRegulations]’.
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43 Section10(1)Companies(AuditingandAccounting)Act,200344 Section10(2)Companies(AuditingandAccounting)Act,200345 Section10(3)Companies(AuditingandAccounting)Act,2003
46 IAASAhasnot,atthetimeofpublicationofthisGuide,issuedanysuchRules.47 DesignationofIAASAasacompetentauthority.
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11.2.2Powertorequirethesupplyofdocuments,informationandexplanations(Regulation43)
InaccordancewithRegulation43(1)(a),IAASAhasthepowertorequireanyofthefollowingpersonsto:
produceanydocumentinhisorherpossessionorcontrol;and
makecopiesofsuchdocuments;and
provideanyinformationorexplanationsthatitmayreasonablyrequireforthepurposeofexaminingandreviewinginformationpublishedpursuanttoRegulations4to848:
(i) anissuer;
(ii) anydirector,manager,officeroremployeeofanissuer;
(ii) anypersonswhocontrol,orarecontrolledby,apersonreferredtoat(i)or(ii);
(iv) anypersondischargingmanagerialresponsibilitiesoftheissuer;
(v) anauditorofanissuer;and
(vi) anypersonwhofellwithinanyof(i)to(v)atatimewhenthedocumentorinformationrequiredbyIAASAwaspreparedorcameintoexistence.
InaccordancewithRegulation43(1)(b),IAASAmaycertifytotheCourttherefusalorfailureofanypersonreferredtoin(i)to(v)abovetocomplywitharequirementmadebyIAASAunderRegulation43(1)(a).
Itshouldbenotedthat,withregardto(v)above,thedisclosuretoIAASAbyanauditorofanyinformation,document,factordecisiononfootofarequirementmadebyIAASAunderRegulation43(1)(a)shallnotberegardedasconstitutingabreachofanyrestrictionondisclosureofinformationimposedbycontractoranylaw,regulationoradministrativeprovisionandshallnotinvolvetheauditorinliabilityofanykind49.
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InaccordancewiththeprovisionsofRegulation59,nothingintheRegulationsshallcompelthedisclosurebyanypersonofanyinformationwhichheorshewould,intheopinionoftheCourt,beentitledtorefusetoproduceonthegroundsoflegalprofessionalprivilegeorauthorisethetakingpossessionofanydocumentcontainingsuchinformationwhichisinhisorherpossession.
11.2.3Powerrelatingtotheissueofnoticesanddirectionstoissuers(Regulation44)
WhereitappearstoIAASAthatthereis,ormaybe,afailurebyanissuerwhosehomeMemberStateisIrelandtoensurethatapublishedannualorhalf-yearlyfinancialreportcomplieswiththerelevantreportingframework,IAASAmaygivenoticetotheissuerandthedirectorsofsuchissuerspecifying:
themattersinrespectofwhichitappearstoIAASAthattheinformationfailstocomplywiththerelevantreportingframework;and
aperiodofnotlessthan30dayswithinwhichtheissuershalleither:
provideIAASAwithawrittenexplanationoftheinformation;or
preparerevisedinformation;
that,intheabsenceofwrittenexplanationortheissuanceofrevisedinformation,IAASAmay:
giveadirectionrequiringtheissuertorevisetheinformationinaccordancewithitsinstructions,asspecifiedinthedirection;
seekanorderofconfirmationfromtheCourtofitsdirection;and
recoveritscostsfromtheissuer;
that,intheeventthatIAASAseeksanorderoftheCourttoenforceitsdirection,IAASAmaypublishnoticeofsuchapplicationinsuchmannerasitseesfit.
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48 Financialreportingrequirementswithregardtoannualandhalf-yearlyfinancialreportsrespectively.
49 Regulation43(2)
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11.2.4 Powersconsequentuponissuer’sresponseunderRegulation44-issueofdirections(Regulations45&46)
If,atorbeforetheendoftheperiodspecifiedinthenoticereferredtointheprecedingsection,orsuchlongerperiodasIAASAmaypermit,theissuerpreparesrevisedinformation,IAASAmay,havingregardtothecircumstancesofthematter,requiretheissuertopaysomeorallofthecostswhichIAASAhasincurredinexaminingtheinformationpublishedbytheissuerandinperformingitsfunctionsundertheRegulations.
If,attheendoftheperiodspecifiedinthenotice,orsuchlongerperiodasIAASAmaypermit:
theissuerhasnotrevisedtheinformation;and
IAASA,havingconsideredanyexplanations,informationordocumentsprovided,remainsoftheopinionthattheinformationdoesnotcomplywiththerelevantreportingframework,
IAASAmaygiveadirectiontotheissuerrequiringtheissueroritsdirectorsorbothtodooneormoreofthefollowing:
(i) revisetheannualorhalf-yearlyfinancialreport,asapplicable,inaccordancewithinstructionsofIAASAasspecifiedinthedirection;
(ii) publishtherevisedinformationinthesamemannerasrequiredbyRegulations4to8andtomakeanyconsequentialamendmentstotheannualorhalf-yearlyfinancialreportspublishedinaccordancewithinstructionsofIAASAasspecifiedinthedirection;
(iii) publishnoticeofthedirectiongivenbyIAASAinaformat,andcontainingsuchinformation,asisspecifiedbyIAASAinthedirection;
(iv) paycostsspecifiedinthedirection,beingcostsincurredbyIAASAinexaminingandreviewingthefinancialreports.
Adirectionreferredtoaboveshallbeinwritingandshallspecifythedatefromwhichitshallhaveeffectandtheperiodforwhichitshallhaveeffect(whichshallnotexceed12months).
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InaccordancewithRegulation46,anissueroritsdirectors,orboth,mayapplytotheCourtforanordersettingasideorvaryingadirectionmadebyIAASAunderRegulation45andtheCourtmay,ifitconsidersitappropriatetodoso,grantsuchanorder.Suchanapplicationmustbemadewithin30daysafterthenotificationofthedirection,orwithinsuchextendedperiodastheCourtallows.
11.2.5 PowertoseekenforcementofadirectionunderRegulation4550(Regulation47)
IAASAmayapplytotheCourt(inasummarymanner)seekinganordertoenforceadirectionmadeunderRegulation45which,initsopinion,hasnotbeencompliedwith.Onhearingtheapplication,theCourtmay,asitthinksfit,makeorrefuseanorderprovidingsuchrelief.
11.2.6 PowersoftheCourtonapplicationbyIAASAforanorderofenforcement(Regulation49)
If,havingheardanapplicationforanorderofenforcementfromIAASA,theCourtissatisfiedthatanissuer’sannualorhalf-yearlyfinancialreportdoesnotcomplywiththerelevantreportingframework,theCourtmaymakeadeclarationtothateffectandmay,byorder,dooneormoreofthefollowing:
(i) requiretheissueroritsdirectors,orboth,torevisethefinancialreportatissuesothatitcomplieswiththerelevantreportingframework;
(ii) givedirectionsrespectingoneormoreofthefollowing:
theauditingoftherevisedfinancialstatements;
therevisionofanymattercontainedinanyannualorhalf-yearlyfinancialreportasappropriate;
thestepstobetakentobringtheCourtordertotheattentionofpersonslikelytorelyontheinformationthatwasthesubjectofthedeclaration;
suchothermattersastheCourtthinksfit;
(iii) requiretheissuerordirectors,orboth,topaythecostsincurredbyIAASAinperformingitsfunctions.
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50 AnapplicationmadeunderRegulation47(2)shallbebymotionandtheCourt,whenconsideringthemotion,maymakesuchinterimorinterlocutoryorderasitconsidersappropriate.
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Forthepurposesofmakingsuchanorder,theCourtmay:
haveregardtotheextenttowhichanyorallofthedirectorswhoapprovedtheannualorhalf-yearlyfinancialreportthatwasthesubjectofthedirectionknew,oroughttohaveknown,thatitdidnotcomplywiththerelevantreportingframework;and
exemptoneormoredirectorsfromanyorderororderthepaymentofdifferentamountsbydifferentdirectors.
11.2.7 Publicationofcourtproceedings (Regulation50)
AttheconclusionofCourtproceedings,IAASAshalldisseminateinsuchmannerasitthinksfit:
acopyofthecourtorder,or
noticethattheapplicationhasfailedorbeenwithdrawn.
11.2.8 Provisions in relation to revised financial reports(Regulation51)
TheRegulationsreferredtoin11.2.3to11.2.7above(withtheexceptionofRegulation46)applyequallytorevisedannualandhalf-yearlyfinancialreports.Therefore,referencestorevisedfinancialreportsinthoseRegulationsaretobeconstruedasreferencestofurtherrevisedreports.Similarly,anyprovisionoftheRegulationsortheCompaniesActsregardingthepreparation,auditing,circulationanddisclosureofannualfinancialstatementsapplieswiththenecessarychangestotherevisedfinancialreport.
11.2.9 Powertoappoint,andpowersof,an authorised officer (Regulations 53 and 54)
TheRegulationsgivepowertoIAASA’sChiefExecutivetoappointoneormoreauthorisedofficersforthepurposesoftheRegulations(and,equally,torevokeanysuchauthorisation(s)).Anauthorisedofficer,whomaybeappointedforaspecifiedorunspecifiedperiod,isempoweredtodoalloranyofthefollowing:
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atallreasonabletimesenteranypremises51atwhichtherearereasonablegroundstobelievethatthereareanyrelevantrecords52;
searchandinspectthepremisesandanyrelevantrecordsonthepremises;
secureforlaterinspectionthepremisesoranypartofthepremisesinwhichrelevantrecordsarekeptorinwhichtheofficerhasreasonablegroundsforbelievingtherelevantrecordsarekept;
requireanypersontowhomtheRegulationsapplytoproducetotheofficerrelevantrecords,andiftheinformationisinanon-legibleform,toreproduceitinalegibleformortogivetotheofficersuchinformationastheofficerreasonablyrequiresinrelationtoentriesintherelevantrecords;
inspectandtakecopiesofrelevantrecordsinspectedorproduced;
removeandretainanyoftherelevantrecordsforsuchperiodasmaybereasonabletofacilitatefurtherexamination;
requireapersontogivetotheofficerinformation(includinginformationbywayofawrittenreport)thattheofficerreasonablyrequiresinrelationtoactivitiescoveredbytheRegulationsandtoproducetotheofficeranyrelevantrecordsthatthepersonhasorhasaccessto;
requireapersonbywhomoronwhosebehalfdataequipmentisorhasbeenused,oranypersonwhohaschargeof,orisotherwiseconcernedwiththeoperationof,thedataequipmentoranyassociatedapparatusormaterial,togivetheofficerallreasonableassistanceinrelationthereto;and
requireapersontoexplainentriesinanyrelevantrecords53.
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51 InaccordancewithRegulation54(2),anauthorisedofficershallnot,exceptwiththeconsentoftheoccupier,enteraprivatedwelling(otherthanapartofadwellingusedasaplaceofwork)unlesstheofficerhasobtainedawarrantfromajudgeoftheDistrictCourt.
52 RelevantrecordsaredefinedbyRegulation38asbeing‘records relating to the activities of persons to whom these Regulations apply’.
53 Regulation54(1)
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Therequirementtoproduceanyrelevantinformationtoanauthorisedofficerextendstoaliquidatororreceiverof,oranypersonwhoisorhasbeenanofficeroremployeeoragentof,apersontowhomtheRegulationsapply,andanyotherpersonwhoappearstohavetherelevantinformationintheirpossessionorhastheabilitytoprovideinformationorassistance,asthecasemaybe54.
AnauthorisedofficermaybeaccompaniedbyamemberofAnGardaSíochánaorbyanotherauthorisedofficerwhenexercisingtheirpowers55.
11.2.10Warranttoenterpremises(Regulation55) Whereanauthorisedofficerispreventedfromentering
anypremises,orbelievesthattherearerelevantrecordsinaprivatedwelling,theauthorisedofficerortheChiefExecutivemayapplytotheDistrictCourtforawarrantauthorisingtheentrybytheauthorisedofficerintothepremises.
11.2.11Co-operationwithothercompetentauthorities(Regulations57,58and75)
AsenvisagedbyArticle25oftheDirective,andtransposedviaRegulation75,IAASAshallco-operatewiththecompetentauthoritiesofotherMemberStatesforthepurposeoftheperformancebyeachoftheirfunctionsandtheexerciseoftheirpowers,andshallrenderassistancetocompetentauthoritiesofotherMemberStatesintheperformanceoftheirfunctions.Accordingly,asrequiredbyArticle26oftheDirective,incircumstanceswhereIrelandisahostMemberState56andIAASAfinds,orhasgroundsforsuspecting,thattherehasbeenacontraventionoftransparency(regulatedmarkets)lawbyanissuer,Regulation57providesthatitshallreferthosefindings,orthefactofthosegrounds’existence,tothecompetentauthorityofthehomeMemberStateofthatissuer.Where,despitethemeasurestakenbythecompetentauthorityinthehomeMemberState,thecontraventionpersists,IAASA(or,whereapplicable,theBank)afterinformingthehomeMemberState’scompetentauthority,shalltakeallappropriatemeasureswithinitspowerundertheRegulationsinordertoprotectinvestors57.
IAASAmayconcludeco-operationagreementswiththecompetentauthoritiesorbodiesof3rdcountriesprovidingfortheexchangeofinformationsoastoallowthecarryingoutofanyofthetasksassignedbytheDirectiveinaccordancewithArticle24oftheDirective58.
11.3 Otherstatutoryprovisionsofrelevance-chargesonissuers(Regulation78(2))
IAASAmayimposechargesonissuers,withtheconsentoftheMinister,forthepurposeofdefrayingtheexpensesincurredinperformingitsfunctionsundertheRegulations.
54 Regulation54(4)55 Regulation54(5)56 Regulation2definesahostmemberstateas‘a Member State in which securities are
admitted to trading on a regulated market, if different from the home Member State’.
57 Regulation5858 Article25oftheDirectiveandRegulation75
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12.1 Contextforadministrativesanctions Article28oftheDirectiverequiresMemberStatestoput
inplaceappropriateadministrativemeasureswhichmaybeimposedinrespectofbreachesoftheDirective’srequirements.Part10oftheRegulations(Regulations60to74inclusive),detailstheadministrativesanctionsprocess,whichissummarisedbelow59.
Itshouldalsobenotedthatsection22(6)ofthe2006ActprovidesthatthoseprovisionsoftheRegulationsconcerningtheimpositionofadministrativesanctionsinrelationtothecontraventionoftransparency(regulatedmarkets)law,applytorulesadoptedbyIAASAundersection10(3)ofthe2003ActconcerningitsfunctionsundertheDirective.
12.2 IAASA’spowertorequesttheappointmentofanassessor(Regulation61)
InaccordancewiththeprovisionsofRegulation61(1)(b),whereIAASAhasreasontosuspectthataprescribedcontravention60isbeingcommittedorhasbeencommitted,andrequeststheBanktodoso,theBankshallappointanassessor(or,iftheBankthinksfit,morethanoneassessor).
12.3 Purposeofanassessment(Regulation61)
Thepurposeofanassessmentconductedbyanassessor(orassessors)is:
todeterminewhetherornottheassesseeiscommitting,orhascommitted,thecontravention;and
iftheassessorfindsthattheassesseeiscommitting,orhascommitted,thecontravention,todeterminethesanction,orsanctions,ifany,whichtheassessorconsidersareappropriatetobeimposedontheassesseeinrespectofthecontravention.
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12.4 Notification of the assessment(Regulation61)
Assoonaspracticableafterhis/her/theirappointment,theassessor(s)shallgivenoticeoftheirappointmenttotheassessee.Thenoticeshallcontain:
astatementthattheassessorhasbeenappointedbytheBankattherequestofIAASA;
astatementinsummaryformofthegroundsforconductingtheassessment;
astatementthat,withinareasonabletimespecifiedbytheassessor,theassesseemay:
makesubmissionsinwritingtotheassessor;and
requesttheassessortobepermittedtomakeoralsubmissionsaboutthematterstowhichthenoticerelates;and
astatementthattheassessorshallconducttheassessmentevenifnosubmissionsaremade.
12.5 Conductoftheassessment(Regulations61and63)
Theassessorshall:
consideranysubmissionsmadebytheassessee;and
conductsuchinvestigationsrelatingtotheassessmentastheassessorconsidersappropriatebeforeissuinganassessment.
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59 ReferenceshouldalsobemadetotheFinancialRegulator’spublication‘Outline of Administrative Sanctions Procedure’athttp://www.financialregulator.ie/data/pub_files/OutlineOfAdministrativeSanctionsProcedure-October2005.pdf.
60 Theterm‘prescribed contravention’isdefinedinRegulation60as‘a contravention of -
(a) these Regulations,
(b) any obligation imposed by the Bank pursuant to a power exercised under these Regulations, or
(c) any other provision of transparency (regulated markets) law;’
IRISH AUDITING & ACCOUNTING SUPERVISORY AUTHORITY Údarás Maoirseachta Iniúchta & Cuntasaíochta na hÉireann
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Anassessormay,bynoticegiveninoroutsidetheState,requirewitnessesto:
appearbeforehimtogiveevidence(andmayadministeroathsforthatpurpose);
producedocumentswhichareintheperson’scustodyorcontrol;and
fortheforegoingpurposes,attendbeforehimfromdaytoday.
Whereapersonfailstocomplywithanoticegivenbytheassessororotherwisethreatens,insultsorobstructstheassessor,theassessormayapplytotheCourtforanorderrequiringcomplianceand/oradiscontinuationoftheinappropriatebehaviour,andtheCourtmaygranttheorderandmakesuchotherordersasitconsidersappropriatetoensuretheco-operationofthepersonconcerned.
12.6 Notification of outcome of assessment to assessee(Regulations61and65)
Havingconsideredanysubmissionsmadebytheassesseeandconductedsuchinvestigationsass/heconsidersappropriate,anassessorshallissuetheassessmenttotheBank,whichtheBankshallimmediatelytransmittoIAASA.Suchassessmentshall,however,constituteadecisionoftheBankasopposedtoadecisionofIAASA.
Wheretheassessordecidesthattheassesseeiscommittingorhascommittedaprescribedcontravention,theassessmentistermedan‘adverseassessment’.Theassesseewill,undersuchcircumstances,beissuedwithacopyoftheadverseassessment.Theassesseewillfurtherbeadvisedoftheirrightofappealagainsttheadverseassessment.
Whereanassessmentresultsinanadverseassessment,theassessorshallensurethattheassessmentincludesstatementsdetailing:
thegroundsfortheadverseassessment;
asummaryoftheevidenceuponwhichthedecisionisbased;and
anysanctionswhichtheassessorconsidersappropriate.
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Wheretheassessorfindsthattheassesseeisneithercommittingnorhascommittedaprescribedcontravention,theBankshallissuetheassesseewithastatementtothateffectandshalladviseIAASAaccordingly.
12.7 Sanctionsthatmaybeimposed(Regulation67)
Inthecaseofanadverseassessment,theBankmayimposeontheassesseesuchofthefollowingsanctionsasarespecifiedsanctions61:
apublicorprivatecautionorreprimand;
adirectiontopayamonetarypenaltynotexceeding€2,500,00062;
adirectiondisqualifyingtheassesseefrombeingconcernedinthemanagementof,orhavingaqualifyingholdingin,anyregulatedfinancialserviceproviderforaperiodoftime;
adirectiontoceasethecontravention(ifthecontraventioniscontinuing);
adirectiontopayallorpartofthecostsoftheBankininvestigatingandholdingtheassessment63.
WhereanassessorwasappointedatIAASA’srequest,theBankshallconsultwithIAASAbeforeimposinganysanction64.
12.8 Appealagainstadverseassessment (Regulation66)
AnassesseemayappealtotheCourtagainstanadverseassessmentwithin28daysoftheissueofacopyoftheassessment,orsuchfurtherperiodastheCourtallows.Havingadjudicatedontheappeal,theCourtmaymakeanordereither:
confirming,varyingorsettingasidetheadverseassessment,whetherinwholeorinpart;oralternatively,
remittingthecasetobedecidedagainbytheBankinaccordancewiththeCourt’sdirections.
SuchdeterminationmaybeappealedtotheSupremeCourtonaquestionoflaw.
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61 ‘Specified sanctions’arethesanctionsreferredtointheassessor’sassessment,whichtheassessorconsidersareappropriatetobeimposedontheassesseeinrespectofthecontravention(Regulation60(1)).
62 Regulation72(2)providesthatthismonetarypenaltyshallnotbeimposedwhere‘(a) the assessee has been found guilty or not guilty of having committed an offence under a provision of these Regulations, and (b) all or some of the acts constituting that offence also constitute the prescribed contravention.’
63 Regulation67(1)64 Regulation67(2)
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12.9 Enforcementofadverseassessment (Regulation70)
IAASAmayrequesttheBanktomakeanapplicationtotheHighCourtforanorderconfirmingtheadverseassessment,includingthespecifiedsanctions.Insuchcircumstances,theCourtcan:
makeanorderconfirming,varyingorsettingasidetheadverseassessment;or
remitthecasetobedecidedagainbytheBank,
buttheCourtshallnothearsuchanapplicationunless:
theassesseeappearsasrespondent;or
theCourtissatisfiedthatacopyoftheapplicationwasservedontheassessee.
Asabove,thedeterminationoftheCourtmaybeappealedtotheSupremeCourtonaquestionoflaw.
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12.10 Publication of certain specified sanctions (Regulation71)
Article28oftheDirectiveprovidesthatMemberStatesshallprovidethateverymeasuretaken,orpenaltyimposed,maybedisclosedtothepublic.Accordingly,unless,intheviewoftheBank,adisclosurewouldseriouslyjeopardisethefinancialmarkets,orcausedisproportionatedamagetothepartiesconcerned,theBankshallpubliclydiscloseanydirectionimposedasasanction,asdescribedinsection12.7above.
12.11Powertoresolvesuspectedcontraventions(Regulation74)
TheRegulationsprovidethat,whereIAASAhasreasontosuspectthatapersoniscommittingorhascommittedaprescribedcontravention,itmayenterintoawrittenagreementwiththatpersontoresolvethematter.Suchanagreement:
mayincludetheimpositionofsanctions;
isbindingonbothIAASAandthepersonconcerned;and
maybeenforcedinacourtofcompetentjurisdiction.
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APPENDICES
IRISH AUDITING & ACCOUNTING SUPERVISORY AUTHORITY Údarás Maoirseachta Iniúchta & Cuntasaíochta na hÉireann
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Inthecontextofthedischargeofitsfinancialreportingreviewremit,IAASAhasundertakentoapplyCESR65Standardsonenforcementoffinancialreportingandrelatedguidelines.CESRStandardsrequire,inter alia,thatselectionmethodologiesmustincluderisk-basedmethodologies.Itisnot,forexample,permittedunderCESRStandardstoadoptselectionmethodologiesbasedpurelyoncyclesorrandomselections.
Asaconsequenceoftheforegoing,IAASAhasresolvedtoadoptamixedmodel,wherebyselectionsofissuers’financialreportsforreviewwillbebasedonriskassessments,supplementedbycyclicaland/orrandomselections(therebyensuringthatentitiesthatmightnotbeselectedasaconsequenceofarisk-basedapproachneverthelessstandtobeselectedforreview).IAASAhasfurtherdecidedthatarisk-basedapproachshouldhaveregard,inter alia,to:
theriskofmaterialmisstatementinissuers’financialreports;and
thepotentialimpactofsuchamisstatementontheusersoffinancialreports.
Inthatcontext,thereare,inIAASA’sassessment,numerousriskfactors,orcombinationsthereof,thatmightusefullybeconsideredinassessingtherelativeriskofanincidenceofmaterialmisstatementinanissuers’financialreports.Theseinclude,amongstothers:
financialstructureandbusiness/economictrends;
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APPENDIX 01
financialpositionandratios;
industryspecificissues;
auditqualificationsandrelatedissues;
corporategovernanceandcontrolenvironmentissues;
incidenceofrelatedpartytransactions;
incidenceofbusinesscombinationsand/ordisposals;
administrative,courtand/orregulatoryactions;and
thirdpartysignals(e.g.complaintsreceivedbyIAASA,pressreportage etc.)
Inassessingthepotentialimpactofamaterialmisstatementontheusersoffinancialreports,thefollowingareamongthefactorsthatmightusefullybeconsidered:
sharetradingactivityandvolatilityinstockprice;
marketcapitalisation;
numberandnatureofinvestors;
natureofsecuritiestraded;and
publicprofile.
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65 CommitteeofEuropeanSecuritiesRegulators
OVERVIEW OF CONSIDERATIONS AFFECTING RISK ASSESSMENT AND SELECTION
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Regulations�(�)and(�)-detailrequiredininterimmanagementreports,includingdisclosuresrequiredinrelationtorelatedparties’transactions
‘[8](2) The interim management report shall include at least:
(a) an indication of important events that have occurred during the first 6 months of the financial year, and their impact on the condensed set of financial statements, and
(b) a description of the principal risks and uncertainties for the remaining 6 months of the financial year.
[8](3) (a) In addition to the requirement contained in the preceding paragraph, an issuer of shares shall disclose in the interim management report the following information, as a minimum:
(i) related parties’ transactions that have taken place in the first 6 months of the current financial year and that have materially affected the financial position or the performance of the enterprise during that period; and
(ii) any changes in the related parties’ transactions described in the last annual report that could have a material effect on the financial position or performance of the enterprise in the first 6 months of the current financial year.
(b) If an issuer of shares is not required to prepare consolidated accounts, it shall disclose, as a minimum, any transactions which have been entered into with related parties by the issuer, including the amount of such transactions, the nature of the related party relationship and other information about the transactions necessary for an understanding of the financial position of the issuer, if such transactions are material and have not been concluded under normal market conditions.
(c) In relation to transactions referred to in subparagraph (b), information about such transactions may be aggregated according to their nature except where separate information is necessary for an understanding of the effects of related party transactions on the financial position of the issuer.’
APPENDIX 02
INTERIM MANAGEMENT REPORTS
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DetailedprovisionsofRegulation��regardingthecriteriafor�rdcountryequivalencedeterminationsin respect of periodic financial reporting requirements.
1. A3rdcountryshallbedeemedtolaydownrequirementsequivalenttothoseofRegulation4(3)(b)(i.e.requirementtoincludeamanagementreportintheannualfinancialreport)where,underthelawofthatcountry,theannualmanagementreportisrequiredtoincludeatleastthefollowinginformation:
afairreviewofthedevelopmentandperformanceoftheissuer’sbusinessandofitsposition,togetherwithadescriptionoftheprincipalrisksanduncertaintiesthatitfaces,suchthatthereviewpresentsabalancedandcomprehensiveanalysis66ofthedevelopmentandperformanceoftheissuer’sbusinessandofitsposition,consistentwiththesizeandcomplexityofthebusiness;
anindicationofanyimportanteventsthathaveoccurredsincetheendofthefinancialyear;
indicationsoftheissuer’slikelyfuturedevelopment67.
2. A3rdcountryshallbedeemedtolaydownrequirementsequivalenttothoseofRegulations8(2)and8(3)(i.e.requiredminimumcontentofinterimmanagementreportsandrelatedpartydisclosuresrespectively)where,underthelawofthatcountry,acondensedsetoffinancialstatementsisrequiredinadditiontotheinterimmanagementreport,andtheinterimmanagementreportisrequiredtoincludeatleastthefollowinginformation:
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areviewoftheperiodcovered;
indicationsoftheissuer’slikelyfuturedevelopmentfortheremainingsixmonthsofthefinancialyear;
forissuersofshares,andifalreadynotdisclosedonanongoingbasis,majorrelatedpartiestransactions68.
3. A3rdcountryshallbedeemedtolaydownrequirementsequivalenttothoseofRegulations5(3)and8(5)(i.e.basisofpreparationofmanagementreports;andresponsibilitystatementsinthecontextofhalf-yearlyfinancialreportsrespectively)where,underthelawofthatcountry,apersonorpersonswithintheissuerareresponsiblefortheannualandhalf-yearlyfinancialinformation,andinparticularthefollowing:
thecomplianceofthefinancialstatementswiththeapplicablereportingframeworkorsetofaccountingstandards;and
thefairnessofthemanagementreviewincludedinthemanagementreport69.
4. A3rdcountryshallbedeemedtolaydownrequirementsequivalenttothoseofRegulation9(i.e.interimmanagementstatements)where,underthelawofthatcountry,anissuerisrequiredtopublishquarterlyfinancialreports70.
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APPENDIX 03
3rd COUNTRY EQUIVALENCE DETERMINATIONS
66 InaccordancewithRegulation11(3),thisanalysisshalltotheextentnecessaryforanunderstandingoftheissuer’sdevelopment,performanceandposition,includebothfinancialand,whereappropriate,non-financialkeyperformanceindicatorsrelevanttotheparticularbusiness.
67 Regulation11(2)68 Regulation11(4)69 Regulation11(5)70 Regulation11(6)
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5. A3rdcountryshallbedeemedtolaydownrequirementsequivalenttothoseofRegulation4(4)(a)(i.e.requirementthatwhererequiredtoprepareconsolidatedfinancialstatements,thoseauditedconsolidatedfinancialstatementscompriseconsolidatedfinancialstatementspreparedinaccordancewiththeIASRegulationandfinancialstatementsoftheparentcompanypreparedinaccordancewiththenationallawoftheMemberStateinwhichtheparentcompanyisincorporated)where,underthelawofthatcountry,theprovisionofindividualaccountsbytheparentcompanyisnotrequiredbuttheissuerwhoseregisteredofficeisinthat3rdcountryisrequired,inpreparingconsolidatedfinancialstatements,toincludethefollowinginformation:
(i) forissuersofshares,dividendscomputationandabilitytopaydividends;
(ii) forallissuers,whereapplicable,minimumcapitalandequityrequirementsandliquidityissues71.
Forthepurposesofequivalence,theissuermustalsobeabletoprovidetheBankwithadditionalauditeddisclosuresgivinginformationontheindividualfinancialstatementsoftheissuerasastandalone,relevanttotheelementsofinformationreferredtoin(i)and(ii)above72.
71 Regulation11(7)72 Regulation11(8)73 Regulation11(9)
6. A3rdcountryshallbedeemedtolaydownrequirementsequivalenttothoseofRegulation4(4)(b)(i.e.therequirementthatwhereanissuerisnotrequiredtopreparedconsolidatedfinancialstatements,theauditedfinancialstatementsshallcomprisefinancialstatementspreparedinaccordancewiththenationallawoftheMemberStateinwhichtheissuerisincorporated)where,underthelawofa3rdcountry,anissuerwhoseregisteredofficeisinthat3rdcountryisnotrequiredtoprepareconsolidatedfinancialstatementsbutisrequiredtoprepareitsindividualfinancialstatementsinaccordancewith:
internationalaccountingstandards,asendorsedbytheEUpursuanttotheIASRegulation;or
3rdcountrynationalaccountingstandardsequivalenttothosestandards73.
Forthepurposeofequivalence,ifthefinancialinformationisnotinlinewiththeaforementionedstandards,itmustbepresentedintheformofrestatedfinancialstatements.Inaddition,theindividualfinancialstatementsmustbeauditedindependently.
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The�00�Act Companies(AuditingandAccounting)Act,2003
The�00�Act InvestmentFunds,CompaniesandMiscellaneousProvisionsAct,2006
Adverse Anassessmentinwhichtheassessment assessorhasdecidedthat
theassesseeiscommittingorhascommittedaprescribedcontravention.
APB AuditingPracticesBoard
ASB AccountingStandardsBoard
TheBank CentralBankandFinancialServicesAuthorityofIreland
CESR CommitteeofEuropeanSecuritiesRegulators
TheConsolidated Directive2001/34/ECoftheAdmissions& EuropeanParliamentandoftheReportingDirective Council
TheCourt TheHighCourt
TheDirective Directive2004/109/ECofthe(Transparency EuropeanParliamentandoftheDirective) Council
EECS EuropeanEnforcerCo-ordinationSessions
TheFinancial TheIrishFinancialServicesRegulator RegulatoryAuthority
FSAP FinancialServicesActionPlan
GAAP GenerallyAcceptedAccountingPrinciples
IAASA IrishAuditingandAccountingSupervisoryAuthority
IASRegulation Regulation(EC)No.1606/2002oftheEuropeanParliamentandoftheCouncil,asimplementedinIrelandbyStatutoryInstrument116of2005.
IFRS InternationalFinancialReportingStandards
Implementing CommissionDirectiveDirective 2007/14/EC
Irishissuer IssuersincorporatedintheStateaspubliclimitedcompanies(withinthemeaningoftheCompanies(Amendment)Act,1983)
Issuers Entitieswhosesecuritiesareadmittedtotradingonaregulatedmarket,situated,oroperating,withintheEU/EEA
MemberState AMemberStateoftheEuropeanUnionoranEEAState
MiFID Directive2004/39/ECoftheEuropeanParliamentandoftheCouncil(MarketsinFinancialInstrumentsDirective)
Minister MinisterforEnterprise,Trade&Employment
GLOSSARY OFTERMS
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Prescribed Acontraventionof-contravention (a) the[Transparency(Directive
2004/109/EC)]Regulations,
(b)anyobligationimposed bytheBankpursuant toapowerexercisedunder theRegulations, or
(c)anyotherprovision oftransparency (regulatedmarkets)law.
Prospectus Directive2003/71/ECoftheDirective EuropeanParliamentandofthe
Council
RegulatedMarket AmarketasdefinedbyArticle4(1),point14,ofDirective2004/39/EC(‘MiFID’)
TheRegulations Transparency(Directive2004/109/EC)Regulations2007
Relevantrecords RecordsrelatingtotheactivitiesofpersonstowhomtheRegulationsapply.
S.I.��� StatutoryInstrumentNo.116of2005:EuropeanCommunities(InternationalFinancialReportingStandardsandMiscellaneousAmendments)Regulations,2005
Specified sanction Thesanctionsreferredtointheassessor’sassessment,whichtheassessorconsidersareappropriatetobeimposedontheassesseeinrespectofthecontravention.
TheTransparency CommissionDecisionDecision 2006/891/EC
Transparency InterimTransparencyRulesofRules theFinancialRegulator
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IRISH AUDITING & ACCOUNTING SUPERVISORY AUTHORITY Údarás Maoirseachta Iniúchta & Cuntasaíochta na hÉireann
IRISH AUDITING & ACCOUNTING SUPERVISORY AUTHORITY
SEPTEMBER, 2007
Willow House, Millennium ParkNaas, Co Kildare, Ireland
+353 (0) 45 983 600 +353 (0) 45 983 601 [email protected] www.iaasa.ie