Technical Hub

Welcome to this week’s Technical Roundup.  In developments this week, the Financial Reporting Council has concluded its annual review of FRS 101- 2021/22 cycle. No amendments have been made to FRS 101 as a result of this review and the European Securities and Markets Authority has published the 26th Extract from its database of enforcement decisions taken by EU accounting enforcers. The Extract of enforcement decisions aims to provide issuers and users of financial statements with relevant information on the appropriate application of the International Financial Reporting Standards (IFRS). Read more on these and other developments that may be of interest to members below. Auditing We have published a new Technical Alert and a webpage on the new quality management standards,  these give a brief outline of the scope of the new quality management standards to help firms understand and apply these standards and to direct members to additional sources of information and guidance on the implementation of the revised standards.  The FRC has released 29 updated ISAs (UK), amended to include conforming amendments arising from the revision of ISA (UK) 315 (Revised July 2020) Identifying and Assessing the Risks of Material Misstatement. ISQC (UK) 1 has also been updated. A link to the updated ISAs can be viewed here. Financial Reporting The Financial Reporting Council (FRC) has concluded its annual review of FRS 101- 2021/22 cycle. No amendments have been made to FRS 101 as a result of this review. The FRC has issued FRED 80 Draft amendments to FRS 100 Application of Financial Reporting Requirements Application Guidance The Interpretation of Equivalence. FRED 80 proposes to update the Application Guidance to FRS 100 to reflect changes to company law and decisions on equivalence further to the UK’s exit from the European Union. Comments on FRED 80 are requested by 26 August 2022. Reminder - FRC will be holding a series of roundtables on the periodic review of UK and Irish accounting standards. These will take place in May and June and if you would like to attend you may register for this on the FRC’s website. The European Securities and Markets Authority (ESMA) has published the 26th Extract from its database of enforcement decisions taken by EU accounting enforcers. The Extract of enforcement decisions aims to provide issuers and users of financial statements with relevant information on the appropriate application of the International Financial Reporting Standards (IFRS). As part of its due process in the standard-setting process for sustainability reporting in the EU, the European Financial Reporting Advisory Group (EFRAG) is inviting preparers to participate in its Use Test Focus Group to test the proposed requirements in its exposure drafts for draft ESRS. The focus group is invited to complete a questionnaire on the operational and other challenges when reporting under the draft ESRS. EFRAG has published its Final Letter on the IFRS Interpretations Committee's (IFRS IC's) Tentative Agenda Decision in the final phase of implementing IFRS 17 Insurance Contracts. EFRAG has held educational sessions on the European Sustainability Reporting Standards (ESRS). The UK Endorsement Board has marked one year since receiving delegated powers from the Business Secretary on 22 May 2021. Other Areas of Interest The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published a study looking at the potential reasons behind the relatively lower ongoing costs, and better performance, of environmental, social and governance (ESG) funds compared to other funds, between April 2019 and September 2021 This week marks the 4th anniversary of the entry into application of the GDPR. The European Data Protection Board remarks that much has happened in the last 4 years and, more than ever, strong and swift enforcement is crucial for ensuring a consistent interpretation of the GDPR. The Irish Commissioner for Data Protection, Helen Dixon also marks 4 years since the GDPR came into application and says, "There's a lot more to do, but we're off to a good start". The Department of Public Expenditure and Reform has convened a summer event for dialogue among policymakers and thought leaders, the wider community of academics, experts from within public financial management, economics, public sector innovation and disciplines beyond on the theme of Artificial Intelligence (AI) and the Future of Digital Governance. It will consider how AI impacts the manner in which the Civil and Public Service works, as well as effects on citizens and the wider community. The event is a virtual one to be held on June 9th at 3pm online and you can read the details of how to register here. Dept of Enterprise Trade and Employment recently reminded businesses that if they have questions on what supports are available for their  business, from Brexit to working safely and more they should contact DETE  Enterprise Information Centre on +353 1 631 2002 or email them at infobusinesssupport@enterprise.gov.ie for information. On 3 June next, the OECD is launching its report “The Culture Fix: Creative People, Places and Industries”. The report outlines international trends with new data, addresses issues in cultural and creative sectors in terms of employment, business development, cultural participation and funding. It also provides analysis of how the sectors contribute to economic growth and inclusion, taking into account the impact of the COVID-19 related crisis on jobs and firms. Finally, it offers recommendations on how to capitalise on the role of cultural and creative sectors in national and local recovery strategies. The report will be launched online at 11 am on 3 June and you can find details on how to register for the webinar here. The Minister for Finance this week signed the order commencing the Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022. This requires certain entities to now be regulated by the Central Bank of Ireland,  for example providers of PCPs (Personal Contract Plans) and providers of indirect credit to consumers, such as the providers of ‘Buy Now Pay Later’ type credit. You can read more details in the Dept. of Finance’s press release here. InterTradeIreland recently published its latest Business Monitor for Q1 2022.Intertrade Ireland commented that the figures highlight the resilience of businesses across the island of Ireland, with sales remaining stable or improving for three quarters of companies (74 per cent). It also referenced however the impact of rising costs which have increased sharply with energy bills now the number one concern facing SMEs.You can read more details here and access the business monitor infographic  here. UK authorities, the FCA and the Bank of England with the endorsement of HM Treasury have recently published a discussion paper on Money Market Fund (MMF) reform. There is concern amongst authorities about underlying vulnerabilities within MMFs and threats to financial stability. The discussion paper seeks views to inform the development of MMF reform proposals. You can read more here and read the discussion paper here. Feedback is invited on the reform options by 23 July 2022. The FCA writes also that it is  doing what it can now to deal with MMF resilience and is issuing new non-handbook guidance on the UK MMF Regulation. The chair of the FCA recently delivered a speech at the Centre for Commercial Law Studies, Queen Mary University of London. He spoke on a number of issues and readers may find his remarks on cryptocurrency and its regulation of interest. He spoke about the recent UK Government announcement that it will consult on a world-leading regime for the crypto-market. He also questioned how the FCA will raise the money to pay for the very significant costs of this additional regulation and the realism required about how far many crypto firms will have to improve before they can be authorised. You can read his speech here. For further technical information and updates please visit the Technical Hub on the Institute website.   

The FRC has issued FRED 80 Draft amendments to FRS 100 Application of Financial Reporting Requirements Application Guidance The Interpretation of Equivalence. This Financial Reporting Exposure Draft proposes to update the Application Guidance to FRS 100 to reflect changes to company law and decisions on equivalence further to the UK’s exit from the European Union. The objective of FRS 100 is to set out the applicable financial reporting framework for entities preparing financial statements in accordance with legislation, regulations or accounting standards applicable in the United Kingdom and Republic of Ireland.   Comments on FRED 80 are requested by 26 August 2022.

The FRC has released 29 updated ISAs (UK), amended to include conforming amendments arising from the revision of ISA (UK) 315 (Revised July 2020) Identifying and Assessing the Risks of Material Misstatement. The revised ISAs (UK) are: 200, 210, 220, 230, 240, 250A, 260, 265, 300, 320, 330, 402, 450, 500, 501, 505, 520, 530, 540, 550, 570, 580, 600, 610, 620, 700, 701, 720. ISQC (UK) 1 has also been updated. A link to the updated ISAs can be viewed here.

Welcome to this week’s Technical Roundup. In developments this week, the International Accounting Standards Board has issued the latest edition of its newsletter 'Investor Update', which profiles recently introduced IFRS Standards and other changes that are in the pipeline as well as how those changes may affect companies and performance and the European Securities and Markets Authority has released a public statement on the implications of Russia’s invasion of Ukraine on half-yearly financial reports. Read more on these and other developments that may be of interest to members below. Auditing The International Auditing and Assurance Standards Board has released non-authoritative guidance, The Fraud Lens – Interactions Between ISA 240 and Other ISAs. The guidance illustrates the relationship and linkages between International Standard on Auditing (ISA) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements and other ISAs when planning and performing an audit engagement and reporting thereon. The Irish Auditing and Accounting Supervisory Authority (IAASA) has published its 2021 Annual Audit Programme and Activity Report which summarises the activities performed during 2021 to oversee the audit profession in Ireland. Financial Reporting Chartered Accountants Ireland are looking forward to welcoming members of the Financial Reporting Council (FRC) to Chartered Accountants House on 16 June for a free in-person event.  This event will include addresses from members of the Accounting and Reporting Policy team as well as the FRC Lab and will provide attendees with an update on topical financial reporting issues in 2022 and the FRC Lab’s recent and current projects. Members who wish to attend can sign up here. The IASB has issued the latest edition of its newsletter 'Investor Update', which profiles recently introduced IFRS Standards and other changes that are in the pipeline as well as how those changes may affect companies and performance. ESMA has issued a Public Statement on the transparency of disclosures on the adoption of IFRS 17 Insurance Contracts. The European Financial Reporting Advisory Group (EFRAG) is holding a series of educational sessions jointly for the EFRAG Sustainability Reporting Board (SRB) and the EFRAG Sustainability Reporting TEG (SR TEG) on the draft ESRS Exposure Drafts (EDs) issued for public consultation on 29 April. Recordings of previous sessions and registration for upcoming sessions are available on EFRAG’s website. In its recent announcement, the International Sustainability Standards Board have outlined the necessary steps required to establish a comprehensive global baseline of sustainability disclosures. In IFAC’s recent podcast called The Fast Future with IFAC, some issues relevant to small & medium practices worldwide were discussed including technology, cybersecurity & workplace culture. The UK Endorsement Board (UKEB) has announced that it has approved the adoption of the International Accounting Standards Board’s (IASB) IFRS 17 Insurance Contracts for use by UK companies. The FRC has published a thematic review of discount rates. The European Securities and Market Authority (ESMA) has issued a statement on the implications of Russia’s invasion of Ukraine on half-yearly financial reports. Reminder- Have your say on the FRC’s periodic review of UK and Ireland accounting standards. As part of the FRC’s periodic review of UK and Ireland Accounting Standards, a series of roundtable events are being held in May and June to allow stakeholders to have a say on specific topics. The schedule of roundtables, as well as details of how to register, can be obtained from the FRC website. Insolvency The Dáil and Seanad recently approved Ireland’s opt into a regulation amending the Annexes to the European Insolvency Regulation, 2015/848 (EIR Recast). Regulation 2021/2260 (Amending Regulation) which replaces Annex A and B to EIR Recast came into force in January 2022. EIR Recast provides for the recognition and enforcement of cross border insolvency proceedings between EU member states.  Anti-Money Laundering and Sanctions The Institute has this week launched webpages providing information and resources to members in the area of anti-money laundering. The pages are located on the Institute’s technical hub (please click here to access) and cover both the Republic of Ireland and the UK on areas such as legislation, supervision, reporting requirements, red flags -know the signs and other resources which we hope members will find useful. This builds on the information provided by the CCAB-I working group in the recent update of  the CCAB-I Anti Money Laundering Guidance for members TR01/2019 (updated March 2022) and we hope that the information will prove to be valuable to members. The Egmont group has recently made public a report on Financial Intelligence Unit’s role in the fight against money laundering of corruption proceeds within the context of the Covid-19 pandemic. Various FIUs across the Egmont Group (EG) membership contributed. FIUs provided detailed information, including detected corruption-related risks and associated mitigating measures, relevant case examples and lessons learned, and emerging best practices and future challenges. You can access the report here . The UK National Crime Agency has recently published its Annual Plan 2022-23. Read here the strategic priorities for the Agency and you can download a copy of the plan here. The NCA publishes a bulletin called SARs in Action. You can access it by going to this page and searching in the description box by title. Click here to access the March 2022 edition. Other Areas of Interest The Minister for Finance and the Minister of State for Financial Services, Credit Unions and Insurance recently hosted the Retail Banking Review Dialogue, an important event on the future of retail banking in Ireland. You can read details about it by following the link. Also, this week the Dept. of Finance has launched a public consultation seeking stakeholder views on the Retail Banking Review. The focus of the review and consultation is on retail banking services. You can register on the government’s portal to respond. The consultation runs until 8 July 2022. President von der Leyen recently gave details of the Commission's proposals regarding REPowerEU, the EU plan to replace Russian fossil fuels, its investment in defence to address capability gaps and the relief and reconstruction of Ukraine with a proposal  to top up the significant short-term relief provided until now to Ukraine with a new exceptional macro-financial assistance . The Pensions Authority has this week issued a reminder of the compliance deadline of 1 July 2022 for master trusts, one-member arrangements set up on or after 22 April 2021 and new schemes. It has also recently provided an information update in several areas. These are the pension benefit statement, the annual compliance statement, the 2022 EIOPA stress test, the interpretation of the regulated markets requirement and the use of electronic communications provided for under the Pensions Act 1990, as amended. You can read further information on their website. The National Standards Authority of Ireland reports that the UK has introduced a new domestic regulatory regime to ensure consumers are protected from unsafe and non-compliant goods. Manufacturers of goods previously subject to the EU’s CE marking will need to start using the UK Conformity Assessment Marking (UKCA) marking if they are placing goods on the market in Great Britain. There are also new requirements for placing goods on the market in Northern Ireland. Businesses need to start preparing now to ensure they are compliant by 1 January 2023.The UK’s Department for Business, Energy and Industrial Strategy (BEIS) and the National Standards Authority of Ireland (NSAI) have organised a webinar to explain the rules and requirements, and what steps businesses need to take to use the UKCA marking and the UKNI marking for Northern Ireland. The webinar will take place from 11.00 – 12.00 Monday 30th May and you can go to this page to register. The Dept of Public Expenditure and Reform has recently published “An Evaluation of the Impacts of Remote Working “. The publication evaluates the impacts of remote working to the Irish economy and society. It finds that overall, remote working is likely to have a positive impact on the Irish economy and society. You can download a copy of the publication from this page. For further technical information and updates please visit the Technical Hub on the Institute website.   

The Institute has today launched webpages providing information and resources to members in the area of anti-money laundering. The pages are located on the Institute’s technical hub (please click here to access) and cover both the Republic of Ireland and the UK on areas such as legislation, supervision, reporting requirements, red flags -know the signs and other resources which we hope members will find useful. This builds on the information provided by the CCAB-I working group in the recent update of  the CCAB-I Anti Money Laundering Guidance for members TR01/2019 (updated March 2022) and we hope that the information will prove to be valuable to members.

The Institute has today launched a webpage on the Small Companies Administrative Rescue Process known as SCARP.  The SCARP is designed to address the specific needs of small and micro companies in financial difficulties. It allows viable companies experiencing temporary financial problems to restructure with the agreement of creditors.  This webpage includes a series of resources to assist members including an overview of the process and timeline, main differences between SCARP and examinership, practical questions and answers and link to a recently hosted webinar and other resources that may be of assistance to members. In addition to the resources outlined above, Technical Alert 02/2022 Small Companies Administrative Rescue Process and an additional guidance document Small Companies Administrative Rescue Process - practical guidance for company directors in a Q&A style are also included on the webpage.