Revenue recently published guidance confirming that following the convergence of UK and Irish GAAP with IFRS, the taxation of provisions and accruals remains unchanged. The guidance replaces the information contained in Tax Briefing 41 to take account of the introduction of current Irish GAAP (FRS 100 to FRS 105) that replaces former Irish GAAP (FRSs, SSAPs, etc.).

This means that former Irish GAAP standards, including FRS 12 Provisions, Contingent Liabilities and Contingent Assets, can no longer be used. The relevant Irish legislation concerning provisions and accruals is section 76A(1) TCA 1997 computation of profits or gains of a company accounting standards and section 81 TCA 1997 general rule as to deductions.