Ireland · The accounting Schedules
Schedule 3: accounting principles, the historical cost rules, value adjustments and fair value
the Companies Act 2014 · Schedule 3
Where the problem is
Goodwill amortisation is the point at which Irish practice diverges most often from group policy. Where, in exceptional circumstances, the useful life of goodwill acquired by a company, or of development costs or other intangibles, cannot be reliably estimated, Schedule 3 paragraph 25(3) sets what must be done. A company that carries goodwill without amortisation because the group does so has not applied the paragraph.
Fair value is permitted rather than assumed, and permission is conditional. Investment property and living animals and plants may be included at fair value provided that all such investment property, and all such living animals and plants, are treated in the way Schedule 3 paragraph 40(2) requires. Applying fair value to part of a class does not satisfy the proviso.
What the Companies Act 2014 requires
Schedule 3 sets the accounting principles and the historical cost rules. Subject to any value adjustment for depreciation or diminution in value made under paragraph 22 or 23, the amount to be included is determined as paragraph 21 provides. Subject to the qualification in paragraph 30(2), the purchase price or production cost of the assets paragraph 30(1) identifies is determined as that paragraph provides.
The alternative accounting rules, the revaluation reserve and fair value accounting are set out in the later paragraphs of the Schedule, including fair value accounting for financial instruments and for the other assets the Schedule names. A company that uses the alternative rules takes on the disclosure that goes with them, so the choice is not cost free.
The tool that solves it
Files 197, 198, 199 and 200 of the IE-COMPANY package cover this situation. File 197 works through the accounting principles, historical cost and value adjustments. File 198 works through purchase price, production cost and the amortisation of intangible assets. File 199 works through the alternative accounting rules, the revaluation reserve and fair value. File 200 works through fair value accounting for financial instruments and other assets.
This situation is covered by these files from the pack IE-COMPANY
- File 197 · Schedule 3: accounting principles, historical cost and value adjustments
- File 198 · Schedule 3: purchase price, production cost and the amortisation of intangible assets
- File 199 · Schedule 3: alternative accounting rules, the revaluation reserve and fair value
- File 200 · Schedule 3: fair value accounting for financial instruments and other assets
Files for this situation
Free · this situation only
The working files named above cover this situation. You take them from your free ComplianceSME account when this situation arises, and you come back to the site for the next situation.
You take the starter pack first: PRINT_ME_FIRST.pdf, the training file T_TRAIN, the four volumes of the reference file T_HELP, and File 1, which builds the ENTITY_PASSPORT.md that the other files require. The situations open in your account once you have taken the starter pack.
Take the files for this situationThe free system
Free · with a free account
The ComplianceSME system for the Companies Act 2014 is free. It needs a free ComplianceSME account and runs inside your own Claude account. It holds 215 working files, the training file, the reference file in four volumes, the regulation analysis, the final review with the gap analysis, and the report assembly. You take the starter pack first, and after that the files for one situation at a time, as each situation arises.
The starter pack holds PRINT_ME_FIRST.pdf, the training file T_TRAIN, the four volumes of the reference file T_HELP, and File 1, which builds the ENTITY_PASSPORT.md that every other working file requires. Print PRINT_ME_FIRST.pdf and read it before any other file.
The system runs in your own Claude account. Upload the files, type START, and the system asks you one question at a time until it has built your documentation, citing the section at every point.
Take the starter packComplianceSME tracks the Companies Act 2014 and issues update files through the membership, so that you are never working from a superseded version. Membership