Accounting watchdog warns companies on regulatory investigation disclosures

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Disclosure required when the possibility of financial impact from such investigations is ‘other than remote’

The Irish Auditing and Accounting Supervisory Authority has told firms they need to disclose if they are subject to a regulatory investigation if it could lead to a fine or other financial settlement. Photograph: iStock

The authority said that a contingent liability stemming from a regulatory investigation should be disclosed in financial statements when the possibility of financial impact is “other than remote”. “It is Iaasa’s expectation that information which is sufficiently significant to warrant inclusion in, for example, a press release, is likely also relevant for disclosure in the management report.”

The sustainability reporting obligations are being phased in to include other Irish large companies from next year, and small-and medium-sized businesses with listed bonds or equities between 2026 and 2028.

 

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