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.
LOADING...