A GUIDE TO THE FINANCIAL REPORTING REQUIREMENTS

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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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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� �A GUIDE TO THE FINANCIAL REPORTING REQUIREMENTSof the EU Transparency Directive and to IAASA’s role under the Directive

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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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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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�0 ��A GUIDE TO THE FINANCIAL REPORTING REQUIREMENTSof the EU Transparency Directive and to IAASA’s role under the Directive

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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.

�� A GUIDE TO THE FINANCIAL REPORTING REQUIREMENTSof the EU Transparency Directive and to IAASA’s role under the Directive

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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

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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 ADMINISTRATIVE SANCTIONS

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;’


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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


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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

TITLE


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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

TITLE


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

SEPTEMBER, 2007

Willow House, Millennium ParkNaas, Co Kildare, Ireland

+353 (0) 45 983 600 +353 (0) 45 983 601 [email protected] www.iaasa.ie

Documents

A GUIDE TO THE FINANCIAL REPORTING REQUIREMENTS