Technical Hub

Welcome to the new Chartered Accountants Ireland Technical Hub which we have launched for members. This new resource replaces CHARIOT from 1 January 2021 and follows the “Hub-based” approach already in use elsewhere by the Institute.

The Hub contains content on audit & assurance, financial reporting, insolvency, links to legislation, and a wide range of proprietary Institute content. There are links to materials previously available on CHARIOT including International Financial Reporting Standards, International Standards on Auditing, Financial Reporting Standards issued by the Financial Reporting Council (FRC) and other FRC material on auditing and financial reporting. There are also links to company legislation and other relevant business legislation for Ireland and the United Kingdom. Technical information issued by the Institute including Information Sheets, Miscellaneous Technical Statements, Technical Alerts and Technical Releases are also included for members.

A mapping document has been prepared, which outlines where content previously found on CHARIOT can now be found on the Technical Hub.

In designing the Hub, care has been taken to make it accessible, user friendly and to provide greater context around the resources provided. We welcome feedback on your experience of using the Hub or indeed, if you have difficulty locating materials that were previously available to you on CHARIOT please let us know.

Latest technical news

Welcome to this week’s Technical Roundup.  In developments this week, the Institute has published an article ‘Accounting and disclosure considerations for Covid-19-related Government Supports under FRS 102’; and IAASA has published its Transparency Reporting – Thematic Review.  The Charity Commission in England and Wales has published guidance to help with running a charity during the coronavirus (COVID-19) outbreak. This includes information on government financial support for charities, fundraising and SORP guidance.   Read more on these and other developments that may be of interest to members below. Financial Reporting The Institute has published an article ‘Accounting and disclosure considerations for Covid-19-related Government Supports under FRS 102’. In view of the supports being made available to business by Governments in both the UK and Ireland to help them cope with the pandemic, the purpose of this article is to remind members of the requirements of FRS 102 on accounting for and disclosing government grants and disclosing government assistance. The IFRS Interpretations Committee has posted the agenda and papers for its next meeting, which will be held on 20 April 2021. The IFRS Foundation has introduced a substantial update to its website. They note that the update includes an improved search function and advanced options for customising how to search and receive information, including a new IFRS Standards Navigator. They have also refreshed their ‘Follows’ tool, which enables users to decide what type of alerts they will receive and how often. The recording of the inaugural UK Endorsement Board (UKEB) meeting, which was held on 26 March 2021, the agenda, and the papers are now available. The topics discussed included adoption of the Terms of Reference and approval of Delegation of Authority to UKEB Chair. A recording of the 30 March 2021 webinar the UKEB secretariat held on the UK endorsement of IFRS 17 is also available. They note that the webinar, aimed primarily at users of accounts, featured a presentation by IASB Board member Nick Anderson on how IFRS 17 works and some key improvements it introduces, and also included initial views from equity analyst and ratings agency perspectives on how the standard could impact their analysis of insurance business. EFRAG has published its draft comment letter on the IASB Exposure Draft ED/2021/1 Regulatory Assets and Regulatory Liabilities and seeks constituents' views on the proposals by 28 July 2021. Also from EFRAG, is a podcast series in which EFRAG Secretariat and experts discuss the issues addressed in the Discussion Paper on Accounting for Crypto-Assets (Liabilities) published by EFRAG in July 2020, and related topics. Auditing IAASA has published its Transparency Reporting – Thematic Review. The objective of this thematic review was to assess the effectiveness of transparency reporting by PIE audit firms in Ireland, to share areas of good practice and other reporting innovations, and to highlight areas where firms need to make improvements. Insolvency At their video conference on 16 April 2021 Eurogroup, an informal body where the ministers of the euro area member states discuss matters relating to their shared responsibilities, will hold a thematic discussion on insolvency frameworks based on a technical note prepared by the European Commission. Other areas of interest Two  new statutory instruments ,entitled Rules of the Superior Courts (Affidavits) 2021 and the District Court (Affidavits)  Rules 2021 came into force recently allowing for the remote swearing of affidavits in circumstances where it is not practicable for the deponent to physically attend for the purposes of the swearing .The statutory instruments set out the rules around such a swearing. The Department of Enterprise Trade and Employment has published its monthly newsletter for April which includes  information about recent developments on the right to disconnect, the Small Business Assistance Scheme for COVID (SBASC) (closing date for receipt of applications is Wednesday, 21 April 2021) and the Government’s agreement to  extend the €2bn Credit Guarantee Scheme. It will remain open for applications until the end of 2021. Following publication of  the BEIS Consultation Document Restoring trust in audit and corporate governance  the Financial Reporting Council (FRC) will be holding a series of webinars and roundtables to provide stakeholders with further insight into key aspects of the consultation and to hear your views on the government’s proposals. You can find out more about the FRC’s extensive outreach programme and register to attend any of the webinars here.   The Charity Commission in England and Wales has published guidance to help with running a charity during the coronavirus (COVID-19) outbreak. This includes information on government financial support for charities,  fundraising and SORP guidance.  https://www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector Trinity College Law school is hosting a series of webinars some of which may be of interest to members. See  Trinity Law School Spring Series .The  webinars are on the topics of 100 Day of Brexit. (Tuesday 20 April, 6pm) and Time to Get SEARious – the proposed Senior Executive Accountability Regime (Tuesday 11 May, 6pm).There are also webinars on  the topics of The Gig Economy ( Tuesday 4 May, 6pm) and  Assessing the Future of Irish Defamation Law (Tuesday 27 April, 6pm)  .The webinars are free but registration is required .Click the above link for registration details. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.   

Apr 15, 2021
Accounting

The Institute has published an article ‘Accounting and disclosure considerations for Covid-19-related Government Supports under FRS 102’ (14 April 2021). In view of the supports being made available to business by Governments in both the UK and Ireland to help them cope with the pandemic, the purpose of this article is to remind members of the requirements of FRS 102 on accounting for and disclosing government grants and disclosing government assistance.

Apr 14, 2021

Welcome to this week’s Technical Roundup.  In developments this week, EFRAG has submitted its endorsement advice regarding Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) and on IFRS 17 Insurance Contracts to the European Commission; , the International Auditing and Assurance Standards Board (IAASB) published Non-Authoritative Guidance on Applying ISAE 3000 (Revised) to Extended External Reporting (EER) Assurance Engagements; and the Central Bank has issued its quarterly bulletin for Q2-2021 dealing with matters such as the Irish economy and the international economic outlook, the year of the pandemic , trade flows in the early aftermath of Brexit and fiscal outlook 2020-2022. Read more on these and other developments that may be of interest to members below. Financial Reporting The European Financial Reporting Advisory Group (EFRAG) has completed its due process regarding Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) (‘the Amendment’) and has submitted its Endorsement Advice Letter to the European Commission. EFRAG assesses that the Amendment meets the technical endorsement criteria of the IAS Regulation and is conducive to the European public good. It therefore recommends its endorsement. EFRAG has also finalised its due process around IFRS 17 and has submitted its Final Endorsement Advice on IFRS 17 Insurance Contracts including the June 2020 Amendments to the European Commission. The Final Endorsement Advice includes the assessment of IFRS 17 against the ‘True and Fair View’-criteria and the assessment of whether IFRS 17 is conducive to the European public good. The final endorsement advice provides conclusions on a number of specific issues that the European Commission and/or the European Parliament considered in their request for endorsement of IFRS 17. It is available here. In other news from EFRAG, the March 2021 edition of the EFRAG Update, summarising public technical discussions held and decisions taken during that month, has been published, and a reminder that EFRAG is seeking members for its financial instruments working group. The Irish Auditing and Accounting Supervisory Authority (IAASA) has noted the issuing of the European Securities and Markets Authority (ESMA) Public Statement “Brexit: Clarifications on the application of the TD requirements by UK issuers with securities admitted to trading on regulated markets in the EU” concerning the application of transparency requirements by UK issuers with securities admitted to trading on regulated markets in the EU under Article 4 of the Transparency Directive (Directive 2004/109/EC) (TD). ESMA notes that the aim of the statement is to ensure a common supervisory approach by all National Competent Authorities concerning the application of the accounting frameworks used by UK issuers, in relation to consolidated and individual financial statements of single and group entities. IAASA has also noted the publishing by ESMA of its report “Enforcement and regulatory activities of European enforcers in 2020”. The Report provides an overview of the 2020 activities of ESMA and of European accounting enforcers when examining compliance of financial and non-financial statements of European issuers. It presents further activities contributing to supervisory convergence and to development of a single rulebook in the area of corporate reporting. The UK Endorsement Board (UKEB) secretariat has launched its survey on IASB Discussion Paper DP/2020/2 Business Combinations Under Common Control (BCUCC). The UKEB is seeking views on the proposals in the Discussion Paper, as well as information about past experiences with BCUCC.To partake in the survey, contact the UKEB. The March 2021 monthly news summary, a brief summary of news and events from the International Accounting Standards Board (IASB) and the IFRS Foundation over the past month is available. The IASB’s user advisory groups, the Capital Markets Advisory Committee, and the Global Preparers Forum met recently and the summary recordings of the meeting discussions, agendas and other related papers are available. The April 2021 IFRS Advisory Council agenda and agenda papers are also available. Sustainability / Non-Financial Reporting Marking a significant step forward in supporting assurance for non-financial reporting, the International Auditing and Assurance Standards Board (IAASB) published Non-Authoritative Guidance on Applying ISAE 3000 (Revised) to Extended External Reporting (EER) Assurance Engagements. The Guidance responds to ten key stakeholder-identified challenges commonly encountered in applying International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information. Anti-Money Laundering The Egmont Centre of FIU Excellence and Leadership (ECOFEL) is a body of Financial Intelligence Units (FIUs) andprovides a platform for the secure exchange of expertise and financial intelligence to combat money laundering and terrorist financing. It recently published its Egmontgroup ecofel-covid-19-best-practices-public-summary .The paper makes observations from FATF, Europol, Interpol and others about emerging risks in the pandemic, why COVID 19 is producing emerging risks, what are the emerging risks seen by FIUs: fraud, cybercrime and corruption and what FIUs are doing about those risks .The paper includes some recommendations for FIUs. The Executive Director of Enforcement and Market Oversight in the UK Financial Conduct Authority recently gave a speech on anti-money laundering controls –“The importance of purposeful anti-money laundering controls”. In it he refers among other things to two very large sanctions imposed for failure to address financial crime and anti-money laundering risks . Both cases highlighted inadequate systems and controls and failure to assess relevant risk factors. He also referred to emerging risks including risks from cryptocurrency firms. Other areas of interest The Central Bank has issued its quarterly bulletin for Q2-2021 dealing with matters such as the Irish economy and the international economic outlook ,the year of the pandemic, trade flows in the early aftermath of Brexit and fiscal outlook 2020-2022. The Financial Reporting Council (FRC) has produced short podcasts on the key corporate governance proposals, enforcement proposals, and quality and competition proposals included in the UK Government’s Restoring trust in audit and corporate governance consultation. Further, the FRC will be holding a series of webinars and roundtables to provide stakeholders with further insight into key aspects of the consultation and to hear your views on the government’s proposals. Find out more about the FRC’s outreach programme and opportunities to hear more about the consultation and to get involved and share your views on the proposals here. The FRC has also published its Strategy for 2021/22 after a period of consultation. Tánaiste and Minister for Enterprise, Trade & Employment has in the last weekbrought in a new code of practice which was developed by the Workplace Relations Commission entitled the WRC code of practice on the right to disconnect .The right to disconnect gives employees the right to switch off from work outside of normal working hours, including the right to not respond immediately to emails, telephone calls or other messages. He is also inviting views on his plans to put the right to ask for remote working into law. You will find more information here on how to make a submission .Closing date for submissions is 7 May 2021. The Independent Review Panel of Charity Regulation seeks views on how well the charities regulatory framework, which is administered by the Charity Commission for Northern Ireland, is working and what could work better. A series of seminars are being held for more details see: https://www.nicva.org/article/independent-review-of-charity-regulation-engagement-meetings The European Securities and Markets Authority (ESMA), has updated its Questions and Answers regarding market structures issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). The purpose of ESMA’s Q&As on market structures issues is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR. Read more here. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.   

Apr 09, 2021

Updated guidance has been released this month in the form of a new Technical Alert. The alert offers guidance to insolvency practitioners on meeting of creditors during Covid-19 pandemic in compliance with the Companies (Miscellaneous Provisions) (Covid-19) Act 2020. This Technical Alert replaces TA 01-2020, which has been withdrawn. The new Technical Alert can be found here.

Mar 31, 2021
Anti-money Laundering

Under Irish money laundering legislation, a “designated person” (which includes an auditor, external accountant or tax adviser and a trust or company service provider) who knows or suspects or has reasonable grounds to suspect that another person has been or is engaged in an offence of money laundering or terrorist financing, is obliged to make a suspicious transaction report (STR) of that knowledge or suspicion or those reasonable grounds. There is a dual reporting obligation of STRs to both An Garda Síochána and the Irish Revenue Commissioners. What is goAML? Ireland’s Financial Intelligence Unit, FIU Ireland, is responsible for receiving and analysing suspicious transaction reports and other information relevant to money laundering or terrorist financing. FIU Ireland is a division of an Garda Síochána, the Irish police. goAML is an online software solution used by an Garda Síochána since June 2017 for designated persons to submit money laundering suspicion reports to the FIU Ireland. Previously accepted paper reporting is no longer possible. Members are encouraged to get set up and registered on the on goAML system. Below is some guidance as to how you can do this. Who must and how do you register for goAML? Prior to being able to submit an STR for the first time to the FIU the designated person must be registered for go AML. FIU Ireland has published guidance as to how to register which should be consulted. This includes  the  Reporting Entity registration guide and a useful FAQ Document. to consult. Entities registered on  go AML will in addition to receipt of acknowledgment of an STR, receive alerts and dissemination of trends and typologies from the FIU and it is  recommended that the message board is checked regularly. Additional Mandatory reporting of STRs to the Irish Revenue Commissioners STRs must also be reported to the Irish Revenue Commissioners. Since September 2020 reporting to the Revenue Commissioners must be online - see  Revenue reporting guidelines . The designated person must be registered for Revenue Online Service (ROS) to submit an STR to Revenue. ROS login in details and a valid ROS digital certificate is required. More Detailed information is available as to how to register and complete STR reporting to the Revenue Commissioners. The Revenue Commissioners also have a ‘Quick Guide to Submitting STRs Online’ available on the Revenue website. The FIU and Revenue have also jointly produced GoAML - Guide to Generating XML Reports which users will find useful.  

Mar 31, 2021

Welcome to this week’s Technical Roundup.  In developments this week, the FRC has published summaries of its corporate reporting reviews and  has published a new report on supervision; IAASA has published an Information Note: IAS 36 Impairment of Assets – information requests from IAASA; EFRAG and the European Commission have met with leading international sustainability reporting standard setters; the Central Bank of Ireland has issued a consultation paper on stakeholder engagement. Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) is seeking public comments on a new approach to developing disclosure requirements in IFRS Standards and new disclosure requirements for the Standards on fair value measurement and employee benefits. The Exposure Draft Disclosure Requirements in IFRS Standards—A Pilot Approach (Proposed amendments to IFRS 13 and IAS 19), along with a Snapshot which provides an overview of the proposals, and a short video introducing the proposals, are available here. The Board is asking for stakeholder comments by 21 October 2021. The IASB has also published a consultation document to seek views on what the Board’s priorities should be over the next five years. In the March episode of the monthly IASB podcast, the Chair and Vice-Chair of the IASB talk about the Board’s discussions at the supplementary meeting on 10 March to discuss IFRS 16 Leases and covid-19-related rent concessions, as well as at the regular monthly meeting held virtually on 23 and 24 March 2021. The March 2021 IASB Update has also been published and the work plan updated. The IASB has decided to extend by 30 days the comment period for the Exposure Draft Regulatory Assets and Regulatory Liabilities to give stakeholders more time to respond. The comment period will now end on 30 July 2021. The IASB has extended by one year the application period of the practical expedient in IFRS 16 Leases to help lessees accounting for covid-19-related rent concessions. The Board has extended the relief by one year to cover rent concessions that reduce only lease payments due on or before 30 June 2022. Further information is available here. Each year, the Financial Reporting Council (FRC) conducts over 200 corporate reporting reviews to assess whether company reports and accounts comply with relevant accounting and reporting requirements. Announcing a new approach to publishing corporate reporting reviews, the FRC has, for the first time, and aligned with a recommendation of Sir John Kingman’s Independent Review of the FRC that reviews should be made publicly available, published summaries of its corporate reporting reviews. IAASA has published an Information Note: IAS 36 Impairment of Assets – information requests from IAASA. IAASA notes that the primary purpose of this Information Note is to provide preparers, auditors and users of financial statements with information to encourage discussion and stimulate debate as to whether or not issuers have adequately considered the requirements of IAS 36, and that, with the aim of achieving this primary purpose, IAASA is publishing a selection of the IAS 36 information requests that it has made to issuers during recent financial statement examinations. Find out more here. Reaching out to stakeholders, EFRAG has released the final podcast of its four-episode series dedicated to the post-implementation review of IFRS 10, IFRS 11 and IFRS 12, along with a survey to collect stakeholders’ views. Noting the issuing of the IASB consultation Request for Information - Third Agenda Consultation (mentioned above), the UK Endorsement Board (UKEB) has invited those interested in being involved in their outreach on this project to email them at agendaconsultation@endorsement-board.uk. Separately, the UKEB has launched a video guide on IASB DP/2020/2 Business Combinations Under Common Control. The International Organization of Securities Commissions (IOSCO) has issued a Statement on Going Concern Assessments and Disclosures during the COVID-19 Pandemic. Auditing The Financial Reporting Council (FRC) has published a new report Our Approach to Audit Supervision, which sets out what firms can expect from the FRC in the course of supervision with a focus on audit quality and firm resilience. A link to the report is available here. Sustainability / Non-Financial Reporting EFRAG and the European Commission have met with leading international sustainability reporting standard setters and other related initiatives to present recommendations for the development of EU sustainability reporting standards and explore possible cooperation in a co-constructive spirit, promoting convergence and maintaining momentum. Find out more here. In the latest In Conversation podcast the FRC's Deputy Director of Stakeholder Engagement and Corporate Affairs speaks to the Head of Clean Growth at the Department for Business, Energy and Industrial Strategy (BEIS) on the UK Government's consultation to require mandatory TCFD reporting. Anti-Money Laundering Listen to the Association of Compliance officers  podcast series. This week the Deputy Money Laundering Reporting Officer of a financial institution discusses the importance of firm-wide AML frameworks, the role of the compliance professional and the role of the first line of defence in managing AML risk. Previous podcasts in the series includes a conversation with the Director of Enforcement and Anti Money laundering at the Central Bank of Ireland about the CBI priorities 2021; she discusses diversity and inclusion, the CBI fitness and probity regime, PCFs and what’s new on the anti-money laundering front. Other areas of interest UK extension of dates of coronavirus temporary measures The UK government’s  Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021 came into force on 26th March 2021. It extends the restrictions on the use of statutory demands and winding up petitions to 30 June 2021 (from 31 March), extends  the modifications to moratorium provisions and temporary moratorium rules to 30 September 2021 (from 30th March ) and extends the small supplier exemption from termination clause provisions to 30 June 2021( from 30 March 2021 ). It also extends provisions suspending liability for wrongful trading to 30 June 2021 (from 30 April 2021). Central Bank of Ireland Consultation with Stakeholders The Central Bank of Ireland has issued a consultation paper on stakeholder engagement. Consultation Paper 136 Enhancing our Engagement with Stakeholders. As a body representing accountants, we welcome this engagement. Details are in the attached and the consultation runs until 11 May. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.   

Mar 31, 2021