Technical Hub

IAASA has published its 2024 quality assurance review reports in respect of seven firms that perform statutory audits of public-interest entities (PIEs) in Ireland. The reports summarise IAASA’s inspection of each firm’s internal system of quality management. The reports include any findings and recommendations made by IAASA to the firms regarding these systems. The reports also summarise the results arising from IAASA’s inspection of a sample of audits of public-interest entities performed by each firm, including the grades assigned to the audits inspected and any key recommendations made to the firm.

Technical Alert 02/2025 – Illustrative Management Representation Letter in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive This Technical Alert provides an illustrative example of a management representation letter that may be used by the assurance provider when conducting a limited assurance engagement required under the Corporate Sustainability Reporting Directive (“CSRD”) as transposed in Ireland into Part 28 of the Companies Act 2014. The International Standard on Assurance Engagements (Ireland) 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information – Assurance of Sustainability Reporting in Ireland (ISAE (Ireland) 3000) as issued by the Irish Auditing and Accounting Supervisory Authority is the applicable assurance standard to be used for CSRD sustainability reporting in Ireland. ISAE (Ireland) 3000 paragraph 56-57 provides that: “56. The practitioner shall request from the appropriate party(ies) a written representation: That it has provided the practitioner with all information of which the appropriate party(ies) is aware that is relevant to the engagement. Confirming the measurement or evaluation of the underlying subject matter against the applicable criteria, including that all relevant matters are reflected in the subject matter information. 57. If, in addition to required representations, the practitioner determines that it is necessary to obtain one or more written representations to support other evidence relevant to the subject matter information, the practitioner shall request such other written representations.”   Click here  to access the TA.  Click ISAE (Ireland) 3000 to access the standard.

Welcome to the latest edition of Technical Roundup. In developments since the last edition, the European Commission has released its eagerly anticipated ‘Omnibus’ proposal. Meanwhile, the International Accounting Standards Board (IASB) has published amendments to its 'IFRS for SMEs' standard. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has issued updated “Guidance on the Going Concern Basis of Accounting and Related Reporting”. The guidance brings together various company law requirements, listing rules, codes and standards and serves as a practical guide to assist companies prepare high-quality going concern disclosures. The International Accounting Standards Board (IASB) has issued its February 2025 update and podcast. The IASB has issued a major update to the IFRS for SMEs Accounting Standard. The standard is either required or permitted in 85 jurisdictions. Included in the updated standard (amongst other things) is a revised model for revenue recognition. The update is effective for annual periods beginning on or after 1 January 2027. The UK Endorsement board is seeking comments and views in relation to the IFRS Foundation’s Proposed Amendments to the Due Process Handbook. Comments are welcomed by 11 March 2025. EFRAG (the European Financial Reporting Advisory Group) is also seeking comments to contribute towards its response to the same project, with comments welcomed by 24 March 2025. EFRAG has published a summary report on its recent event “Financial Reporting: What’s Ahead for 2025”. EFRAG has published its Feedback Statement on the IASB's Exposure Draft on Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures. It has also issued a Feedback Statement on the IASB ED Climate-related and Other Uncertainties in the Financial Statements - Proposed illustrative examples. EFRAG are still accepting comments on its Draft Endorsement Advice for IFRS 18 - Presentation and Disclosure in Financial Statements. Accountancy Europe and IFAC, in a joint statement, have outlined ways in which they will work together to support their members and strengthen the profession. Sustainability Omnibus proposals In its release of the eagerly awaited “Omnibus” proposals on 26 February, the European Commission (EC) has proposed some significant changes to its Sustainability Reporting Regulatory framework. These proposals, if approved, will simplify the sustainability reporting rules that many Irish companies have been preparing for in recent years. The proposals will also remove many companies from a mandatory sustainability reporting regime. The proposals will now enter trialogue negotiations between the European Parliament and the European Council where amendments may be made prior to its introduction. Chartered Accountants Ireland will continue to engage with the relevant bodies, and we will update members on any significant developments. To read more about the proposals, see our recent news item. The Omnibus proposals have attracted a lot of attention since they have been published. Readers may be interested in reading the following. Accountancy Europe’s March 2025 Sustainability Update addresses some of the key changes proposed. The Global Reporting Initiative (GRI) has labelled the decision “a backward step for EU sustainability” and has questioned how this will achieve a climate-neutral EU which is one of the key goals set out in the European Green Deal. The European Funds and Asset Management Association have published this infographic outlining some of the proposals expected from the European Commission in 2025. An IFRS Sustainability Stakeholder event took place on 25 February – Disclosure about transition plans.  The recordings of the various sessions are available to view online. The International Sustainability Standards Board (ISSB) has published the recording of its seventh 'Perspectives on sustainability disclosure' webinar Using the GHG Protocol for climate-related disclosures. Episode 8 ‘The future of integrated reporting and integrated thinking’ will be held on March 20th. The ISSB has issued its February 2025 update and podcast. The GRI has published a series of five case studies of companies reflecting on their journey towards compliance with GRI 101: Biodiversity 2024. Accountancy Europe recently held an online discussion with SMEs and discussed some of their sustainability reporting issues. Legislation 2025 Readers are reminded that new UK company size thresholds for micro, small and medium companies will come into force from 6 April 2025. The Professional Accountancy team has added a new UK company thresholds page to the Technical Hub where you can read more about the changes and access a chart showing the pre and post 6 April 2025 thresholds . Other news The Competition and Consumer Protection Commission (CCPC) has published its Annual Mergers and Acquisitions Report 2024, providing details of the mergers and acquisitions notified to, and reviewed by the CCPC, throughout the year. The professional services sector (including legal, accountancy, consultancy, engineering, and veterinary) was the most prominent sector, with 13 merger notifications received. In February 2025 the Central Bank of Ireland (CBI ) published its 2025 Regulatory & Supervisory Outlook report. CBI states that the report sets out the Central Bank’s perspective on the key trends and risks that are shaping the financial sector operating landscape, and its consequent regulatory and supervisory priorities for the next two years. Artificial Intelligence is spotlighted again this year with the Central Bank expecting to be designated as a “Market Surveillance Authority” by the Government as part of a multi-lateral system of AI supervision in Ireland and the EU. Another spotlight is Geopolitical Risks: and the report outlines a Framework for Navigating Heightened Uncertainty. Other topics which may be of interest include the piece on credit unions including Credit Union Sector Key Risks Overview. The Global Reporting Initiative (GRI) has launched a consultation on a revised version of ‘GRI 404: Training and Education 2016' and a new standard titled ‘Working Parents and Caregivers’. The consultation is open until 29 April 2025. Enterprise Ireland recently launched its new five-year strategy, Delivering for Ireland, Leading Globally (2025-2029) which sets out targets to increase jobs and to increase exports, focussing on strengthening skills and talent, funding ambition and embracing sustainability. In episode 12 of its podcast series “The Fast Future”, IFAC look at ways in which SMEs can embrace technology. The Charities Commission for Northern Ireland has released a short video outlining what it means to be a charity trustee. Charities representative body, the Wheel, is encouraging its members to support an initiative being undertaken by the Government’s Anti-Money Laundering Steering Committee, which is aimed at helping to assess the AML risk to the non-profit sector.  Artificial Intelligence (AI) - updates The Irish AI Advisory Council was established in January 2024 to provide independent expert advice to government on artificial intelligence policy. In February 2025 it released its latest report  “Ireland’s AI Advisory Council Recommendations --Helping to Shape Ireland’s AI Future”. One of the areas the report covers is AI Literacy and education. AI literacy is something which readers may be aware Article 4 of the AI Act requires providers and deployers of AI systems to ensure a sufficient level of. The report also calls for government guidelines for use of generative AI and a system to access AI tools. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.