Enterprise Ireland
Annual Report and Accounts
2007

Financial Statements - Accounting Policies

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For the Year Ended 31 December 2007

The basis of accounting and significant accounting policies adopted by Enterprise Ireland are as follows:

(a) Basis of Accounting

The financial statements have been prepared under the historical cost convention and in the form approved by the Minister for Enterprise, Trade and Employment with the concurrence of the Minister for Finance under the Industrial Development (Enterprise Ireland) Act, 1998.

The financial statements have been prepared on an accruals basis, except as stated below and in accordance with Generally Accepted Accounting Practice. Financial Reporting Standards recommended by the recognised accountancy bodies are adopted as they become applicable.

Income Recognition

The following income categories are on a cash basis:

(b) Superannuation

Legislation requires Forfás to prepare and administer pension schemes for the granting of pension entitlements to its staff including staff seconded to Enterprise Ireland. Forfás is responsible for Pension reporting requirements including those set out under FRS17.

In 2006 Enterprise Ireland introduced a Voluntary Leaving Programme. The lump sums paid under this scheme (superannuation and severance) are funded from own resources and are accounted for in the Income and Expenditure Account in the period in which they arise. 

(c) Leases

Rentals under operating leases are dealt with in the financial statements as they fall due.

(d) Foreign Currencies

The financial statements are expressed in euro.

Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the Balance Sheet date. Transactions in foreign currencies are translated at the exchange rates ruling at the dates of the underlying transactions. The resulting profits or losses are dealt with in the Income and Expenditure Account.

 

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