• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Mock exams
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        F2f student events
        Key dates
        Book distribution
        Timetables
        FAE elective information
        CPA Ireland student
      • Exams
        CAP1 exam
        CAP2 exam
        FAE exam
        Access support/reasonable accommodation
        E-Assessment information
        Exam and appeals regulations/exam rules
        Timetables for exams & interim assessments
        Sample papers
        Practice papers
        Extenuating circumstances
        PEC/FAEC reports
        Information and appeals scheme
        Certified statements of results
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Admission to Membership Ceremonies
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Audit qualification
        Diversity and Inclusion Committee
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        Student benefits
        Study in Northern Ireland
        Events
        Hear from past students
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        CPA student
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Recruitment to and transferring of training contract
      • Support & services
        Becoming a student FAQs
        School Bootcamp
        Register for a school visit
        Third Level Hub
        Who to contact for employers
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Newly admitted members
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        ACA Professionals
        Careers development
        Recruitment service
        Diversity and Inclusion Committee
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Practice Consulting services
        Practice News/Practice Matters
        Practice Link
      • In business
        Networking and special interest groups
        Articles
      • Overseas members
        Home
        Key supports
        Tax for returning Irish members
        Networks and people
      • Public sector
        Public sector presentations
      • Member benefits
        Member benefits
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        Institute Technical content
        TaxSource Total
        The Educational Requirements for the Audit Qualification
        Pocket diaries
        Thrive Hub
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • The Institute
☰
  • Home
  • Articles
  • Students
  • Advertise
  • Subscribe
  • Archive
  • Podcasts
  • Contact us
Search
View Cart 0 Item
  • Home/
  • Accountancy Ireland/
  • Articles/
  • Ethics and governance/
  • Latest News/
  • Article item

How we can leverage CSRD to drive sustainability and innovation?

As businesses navigate a new landscape, the CSRD challenges them to comply, but also to seize the opportunity for growth through sustainability, writes Dave O’Shaughnessy Embarking on a new era of transparency and accountability, the European Corporate Sustainability Reporting Directive (CSRD) is set to revolutionise the way large and publicly listed companies disclose their environmental, social, and governance (ESG) practices. Phase 1 of the CSRD targets large companies meeting at least two of these criteria: over €50 million in net turnover, more than €25 million in balance sheet totals, or an average of 250 employees annually.   This directive unfolds progressively through to 2029, with the goal for entities to measure, understand, and communicate their ESG impacts in a transparent, consistent, and comparable way. The scope of the directive, in terms of the amount of data needed and the specific requirements, including presentation, digital tagging, comparative data analysis, and digital submission, is broad and detailed. There are more than 800 individual data points within CSRD, of which almost 200 are mandatory.  CSRD incorporates quantitative and qualitative metrics, to measure the impacts, risks, and opportunities of upstream, own-operations and downstream activities, based on a thorough double materiality assessment. Moving beyond compliance Companies now have the chance to extend their vision beyond mere compliance requirements by leveraging the wealth of data and analytics at their disposal to unlock a multitude of untapped opportunities. Preparation and presentation of comprehensive ESG reports provide organisations with actionable insights about their business that they did not previously have. Organisations are increasingly recognising that a well-defined sustainability strategy is essential for long-term success. As they develop and refine these strategies, the need for technology that not only supports but also enhances their sustainability goals becomes clear. These strategies should be adaptable and scalable, evolving in tandem with the organisation’s growth and sustainability ambitions. By integrating advanced data management systems, organisations not only meet their ESG reporting needs but also provide a platform for performance monitoring and management, as well as scenario modelling to shape future initiatives. The right technology is a catalyst, propelling organisations towards their sustainability objectives and unlocking new opportunities for responsible growth. For assurance, it’s essential to have systems in place that can accurately track and document ESG initiatives, allowing for third-party verification. This helps to confirm that the reported data is complete, accurate, and consistent with relevant standards and frameworks. Assurance processes also provide stakeholders with confidence that the organisation’s ESG disclosures are trustworthy and that it is committed to transparency and accountability. Delivering value through technology Scalable, adaptable, and flexible technology should provide the backbone of every organisation’s ESG strategy. Organisations require a technology solution that will streamline the data integration process and automate the collection, collation, analysis, and reporting of ESG data for relevant reporting frameworks. Implementation of a comprehensive data management system will not only help companies streamline data integration and automate ESG data handling for reporting frameworks but also meet their ESG reporting and assurance requirements.  A 2023 NASDAQ research report that interviewed 150 global sustainability, finance, and legal executives found that investment in ESG software is helping to improve organisational collaboration, mitigate risks, and meet ambitious ESG and sustainability goals. One of the predominant challenges that we are seeing for many organisations relates to value chain reporting. The need to share detailed, potentially sensitive, data between value chain partners, from raw material extraction to end-of-life disposal and recycling certainly brings an added level of complexity. Value chain reporting requirements for scope 3 emissions and on social areas, such as child labour and modern slavery, challenge the traditional definition of an organisation’s boundaries. As well as the processes and systems needed to capture accurate and reliable data, the related governance and cultural implications of this fundamental shift are complex and challenging.  To meet these challenges, companies need to leverage technology that is adaptable to different frameworks including all the necessary integration capabilities with internal systems. A future-proof solution that meets today’s reporting and ESG management needs, while also incorporating additional evolving regulatory requirements and others that may follow, is needed. Looking beyond reporting CSRD is in force and although the new sustainability reporting requirements may seem vast and onerous, the opportunity it provides to look beyond reporting and to explore new and innovative options is compelling. The need for an ESG reporting solution that is adaptable, scalable, and integrated is clear. Dave O’Shaughnessy is Sustainability Reporting Partner at EY

Nov 01, 2024
READ MORE

Is your organisation required to submit a PSA?

The introduction of Enhanced Reporting Requirements on 1 January 2024 has resulted in increased scrutiny of the taxability of employee benefits and expenses, writes Jillian O’Sullivan We have seen a shift in Revenue focus during PAYE interventions not only to matters within scope of Enhanced Reporting Requirements (ERR) reporting but also to staff entertainment. It is, therefore, critical that employers now consider whether they are required to submit a PAYE Settlement Agreement (PSA) application before the 31 December deadline. This process enables employers to account for income tax, Universal Social Charge (USC) and PRSI due on taxable employee benefits and expenses that have not been accounted for via the PAYE system during the year, to ensure payroll tax compliance is managed appropriately. What is a PAYE Settlement Agreement? Many employers provide benefits and expenses to employees, such as staff entertainment, vouchers and other gifts. Unless these benefits and expenses fall within the terms of specific tax exemptions or Revenue concessions, they are liable to payroll taxes on a real-time basis. PSAs are an administrative arrangement that allows employers to pay taxes on behalf of their employees on benefits and expenses that are ‘minor and irregular’ in nature in one annual settlement on a grossed-up basis. Deadlines A written application must be submitted to Revenue by 31 December 2024 for the PAYE year 2024. Taxes due under the agreement must then be paid over by 23 January 2025. Included PSA items The benefits or expenses to be included must be non-cash, minor in nature and amount, and irregular with regard to the frequency the benefits or expenses are provided. Examples of taxable items that could be included in a PSA are: Staff entertainment; Staff lunches/drinks/meals; Staff awards and prizes; and Staff gifts where the small benefit exemption has otherwise been utilised, e.g. wedding, birthday, baby, Easter and Christmas gifts. Get proactive With the increasing scrutiny by Revenue on payroll tax compliance, it is essential for employers to proactively assess their obligations regarding PSA. Ensuring that all taxable employee benefits and expenses, including staff entertainment and gifts, are accounted for can help avoid potential penalties and maintain good standing with Revenue. The 31 December deadline for PSA applications for the 2024 PAYE year is a critical date that employers should not overlook. By meeting these requirements and preparing well in advance, businesses can streamline their tax processes, reduce administrative burdens, and foster a compliant and transparent work environment. Jillian O’Sullivan is Corporate Compliance Partner at Grant Thornton

Nov 01, 2024
READ MORE

Emotional intelligence drives leadership success

Neil Hughes explains how mastering emotional intelligence can empower leaders to build trust, improve communication and enhance team performance One of the most critical factors shaping leadership today is the capacity to manage one’s own emotions while also understanding and responding to the emotions of others – also known as emotional intelligence (EI). Daniel Goleman, one of the pioneers of the concept of EI at work states: “technical skills will only take you so far. EI will take you farther”. Goleman identifies five components of EI that can help individuals navigate and maximise their personal and professional relationships effectively:  Self-awareness refers to the ability to recognise and understand your emotions and how they affect others.  Self-regulation is the ability to manage or redirect disruptive emotions and adapt to change. Motivation is about a leader’s drive to achieve meaningful goals for reasons beyond external rewards.  Empathy is the ability to understand the feelings of others by recognising and considering others’ perspectives. Social skills refer to proficiency in managing relationships and having the ability to inspire and influence others positively. Much has been written about Satya Nadella’s success as the CEO of Microsoft. His approach to leadership is grounded in EI, with a strong emphasis on empathy, building relationships and developing a collaborative work culture. With his leadership, Microsoft has experienced a profound transformation with its share price growing an impressive 969 percent since Nadella took over. So, what can leaders learn from this? By fostering EI in themselves and their organisations, leaders can cultivate a deeper understanding of themselves and their teams. An emotionally intelligent leader can build trust within their teams by applying behaviours and practices which are rooted in Goleman’s components of emotional intelligence.  Leaders who possess social skills, practice empathy and understand motivational drivers can set a foundation for building strong relationships. These qualities enable leaders to understand, connect and support their employees. Emotionally intelligent leaders who are effective at managing their emotions and understanding the emotions of others excel in areas such as communication and decision-making. They are adept at expressing themselves clearly and tailoring their communication styles to suit individuals and situations, which cultivates open dialogue and reduces misunderstandings. They remain calm under pressure and take a holistic view of situations, leading to rational and empathetic decision-making.  Leaders with high levels of emotional intelligence also tend to practice self-regulation, which means they avoid impulse reactions, making them better equipped to manage conflict. By remaining composed during disputes, they fully understand different perspectives and lead their teams towards constructive solutions and growth opportunities.  By focusing on these components of EI, leaders can establish lasting trust within their teams driving higher performance. The Journal of Organisational Behaviour has found that high levels of trust can increase team performance by up to 20 percent.  Leaders who invest in understanding and developing their emotional intelligence are much better equipped to handle their own emotions and those of others, which makes them more capable of leading their teams to success.  What steps will you take to harness the power of EI to transform your leadership, build trust and increase performance within your team? Neil Hughes is Director of People and Change Consulting at Grant Thornton

Oct 18, 2024
READ MORE

Sustainable practices power business growth

Dr Claire Guy explores how Irish companies can reduce costs, boost reputation, and gain market share through eco-friendly practices Being environmentally friendly is not only good for the planet, but also for the bottom line. Businesses that adopt sustainable practices can reduce their costs, improve their reputation, and gain a competitive edge in the market. Additionally, sustainability is increasingly becoming a legal requirement, as both Ireland and the EU have set ambitious targets and regulations to combat climate change and environmental degradation. Regulatory framework Ireland’s Climate Action Plan 2024 outlines Ireland’s commitment to achieving a 51 percent reduction in greenhouse gas emissions by 2030, compared to 2018 levels. The European Green Deal commits to delivering net-zero GHG emissions at EU level by 2050; with Ireland committed to achieving net-zero emissions no later than 2050. These ambitious targets require significant investment and changes across various sectors, including energy, agriculture, and transport. For businesses, this means adapting to stricter environmental regulations and investing in sustainable practices. Companies now need to innovate and adopt greener technologies to meet these targets, which may initially increase operational costs but also present new opportunities for growth and competitiveness in a low-carbon economy.  The transition to a more sustainable business model is not just a regulatory requirement but also a strategic move to future-proof businesses against the impacts of climate change. To meet the 51 percent reduction in greenhouse gas emissions by 2030, Ireland has agreed to several specific sectoral targets, including: Electricity: 75 percent greenhouse gas reduction by 2030; Transport: 50 percent greenhouse gas reduction by 2030; Industry/enterprise: 35 percent greenhouse gas reduction by 2030; and Agriculture: 25 percent greenhouse gas reduction by 2030. Meeting these target reductions is a journey which presents challenges and opportunities for Irish businesses.  Businesses are now encouraged to set science-based targets (SBTs) and develop comprehensive company-specific climate action plans, covering everything from resource efficiency to supply chain, to achieve these goals and transition to a low-carbon, circular economy.  These targets involve measuring and reducing emissions across all scopes (Scope 1 relates to direct emissions from an organisation’s facilities, Scope 2 relates to emissions from energy purchased by the organisation, and Scope 3 relates to other indirect emissions, such as those from suppliers and the use of the organisation’s products), investing in renewable energy, improving energy efficiency, and innovating sustainable practices. Benefits to Irish businesses Going green offers several benefits to Irish businesses, both economically and environmentally. Here are some key advantages: Economic resilience: The need to reduce our reliance on fossil fuels was especially highlighted by global events like the war in Ukraine. By investing in green technologies and practices, Ireland aims to build a more resilient and self-sufficient economy. Circular economy: Ireland is promoting a circular economy, which involves reusing and recycling materials to minimise waste. This approach not only benefits the environment but also offers significant cost savings for businesses. Companies like IKEA are now transitioning towards a circular business, aiming to give products and materials a longer life through reuse, refurbishment, remanufacturing, and recycling. The company designs products with circular capabilities and uses renewable or recycled materials. Their sustainability strategy includes becoming a fully circular business by 2030. Cost savings: Implementing sustainable practices can lead to significant cost reductions. For example, energy-efficient technologies and waste-reduction strategies can lower utility and disposal costs. Attracting talent: A survey by IBM showed that 67 percent of people are more willing to apply for jobs from organisations they consider to be environmentally sustainable and environmentally responsible. By going green, businesses can attract and retain top talent who value sustainability. Customer demand: 75 percent of Irish consumers think that climate change and its consequences are the biggest challenges for humanity in the 21st century, and have turned to sustainable products and services. Meeting these demands can help businesses win new customers and increase loyalty. Investment and funding: Sustainable businesses are more likely to attract investment and funding. There are various grants and supports available for businesses that commit to green practices in Ireland. Compliance and futureproofing: As regulations around environmental impact become stricter, businesses that adopt green practices early will be better prepared to comply with future laws and standards. Reputation and brand image: Being known as a sustainable business can enhance a company’s reputation and brand image, making it more appealing to both customers and partners. For example, Kellogg’s aims to use 100 percent recyclable, reusable or compostable packaging by the end of 2025 to align its business with circular economy principles, as well as strengthen its green reputation and brand. Global market access: Many international supply chains now require sustainability from their partners. Going green can open new markets and opportunities for Irish businesses. Whether a business is furthering its journey towards sustainability or just beginning to take serious steps in that direction, various aids are available from Ireland and the EU. These supports facilitate progression towards more eco-friendly operations and foster employee participation in these initiatives. Dr Clare Guy is a Senior Consultant at KPMG

Oct 18, 2024
READ MORE

Working from home to stay in 2025?

As some companies pivot back to full-time office work, Mark Fallon examines the sustainability of remote work and its impact on business culture and talent retention The first few months of the year changed the landscape of the professional working week. From the onset of the COVID-19 pandemic up until 2022, office workers were predominantly ‘working from home’ (WFH). Then came the shift to a hybrid working model, with professionals working part-time in the office and part-time at home. Today, in thew fourth quarter (Q4) of 2024 and trending into 2025, the dynamic is changing once again with many companies doing a U-turn on their WFH policies, demanding their employees to return to the office five days a week. Resurfacing culture concerns In 2020, Coopman Search and Selection ran a survey of more than 400 professionals in Ireland about working from home in the first winter of COVID-19. Out of several interesting findings in this survey, the biggest fear from corporations at this time was the ‘lack of collaboration’ and ‘loss of culture’ with employees not being present in the office environment. Fast-forward to Q4 2024 and this concern has come to fruition, with business leaders ‘feeling’ that employees need to be in the office more , as stated by Andy Jassy, CEO of Amazon, in September 2024, “to be better set up to invent, collaborate and be connected to each other”. There is mixed data on the advantages and disadvantages of WFH. Some claim productivity has dropped since its introduction, while employees who benefit from hybrid working feel more empowered, better at balancing personal and professional responsibilities. Flexibility remains key to talent attraction Flexible remote work policies can significantly impact the quality of talent they attract. Companies based in major cities might miss out on top talent by requiring full-time office attendance, as many skilled workers are located outside of the commuter area. Offering hybrid or remote work options can help businesses remain competitive in the talent market. While studies have shown mixed results on productivity, some report up to a 13 percent increase in output from remote workers, though others suggest a drop in collaboration and engagement. Looking ahead to 2025, many large companies are expected to increase mandatory office days, while smaller businesses may stick to hybrid models. Employees unhappy with stricter office requirements will likely seek more flexible employers, giving those companies a chance to secure top talent. Fully remote workers may face more challenges securing roles as the trend shifts toward in-office work. A future of retention and growth As the debate over remote work continues, companies that balance flexibility with in-office collaboration will likely be best positioned to attract top talent and meet employee needs in Ireland for talent attraction and retention. Organisations must carefully assess their policies to foster environments that encourage both individual efficiency and collective creativity, ensuring a sustainable future in the evolving work landscape. Mark Fallon is Director and Co-Founder at Coopman Search and Selection

Oct 18, 2024
READ MORE

Unlocking workforce potential with AI

AI is reshaping the workforce, blending human creativity with technology. Tim Bergin explores how organisations can leverage generative AI to unlock potential and drive transformation Generative artificial intelligence (Gen AI) may be perceived as a risk to human employment, but it can also be viewed as a catalyst for redefining the contribution of individuals in the professional environment. Increased access to Gen AI is allowing workers to fill capability gaps in creativity, team dynamics and content generation with a new technology-driven assistant. The challenge now lies in encouraging our organisations to embrace the advantages while unlocking the potential for workforce workplace restructuring. Unlocking human potential Gen AI provides the ability to rethink how work is organised at operating model, functional level an team level. How can employers unlock the full potential of their workforce at these levels? Team AI is a proven catalyst for better communication, how we interact with colleagues and customers, and how we collaborate and get work done. For example, virtual and augmented reality allow real-time collaboration with people across the globe, facilitating richer conversations, skill sharing and exposure to other areas of the organisation. According to the EY Workforce Reimaged 2023 survey, there is a 33 percent net positive sentiment of employers and employees who believe Gen AI will boost productivity and new ways of working, and an even greater 44 percent net positive of those who expect the technology to enable greater flexible working. Aside from additional capacity, AI systems can provide insights into team performance, sentiment and connection by tracking and analysing data. This could give employers insight into how their team is feeling through survey feedback. This can help promote a more productive, collaborative environment, enabling employers to proactively address employee issues. Organisation The adoption of AI at an organisational level can revolutionise current ways of working from front-line customer-facing functions, to operations and corporate functions such as finance and HR. The transformative impact can be seen on all fronts, demonstrating the potential to improve not only efficiency and effectiveness but also employee experience. For example, using Gen AI to predict consumer needs can help organisations refine their stock systems and supply chain to ensure products are ready at the point of need, rather than stockpiling and incurring unnecessary storage costs. This use case can also free up time for consumer-facing staff to have more considered conversations with their customers about potential future purchasing needs, and demonstrates the rounded positive impact we can expect to see if Gen AI is used responsibly, and thoughtful consideration is given to the workforce impact and opportunity. It is clear from a team and organisational perspective that AI’s role is pivotal in the evolution of the workforce and the increasing requirement for upskilling and reskilling. Success lies in the coming together of emerging technologies and vital human interventions; releasing the power of technology while emphasising the importance of what makes work human. Collaborative partnership While AI's rapid proliferation might trigger fear of unprecedented changes in the working environment, organisations must remember that by embracing AI and investing in the upskilling of their workforce, they are fostering a collaborative partnership between human creativity and artificial intelligence. Tim Bergin is Partner of People Consulting at EY 

Oct 11, 2024
READ MORE

Handling employee resignations, from notice to exit

When an employee resigns, handling the process smoothly is crucial. Moira Grassick outlines key steps to manage both formal resignations and sudden departures in your business Occasionally, employees resign. In doing so, they usually give full contractual notice of their resignation. However, an employee sometimes resigns in the heat of the moment. As you can imagine, quitting a job with no notice given doesn’t exactly follow the typical resignation process. Regardless of whether an employee submits a resignation letter or rage quits their job, you need to handle the situation properly.   What is resignation? Resignation is when an employee informs their employer that they’re quitting. The employment relationships can end in various ways, including: An employee gives you their notice of resignation by speaking with you or handing in a letter of resignation; The business ends the contract of employment; or An employee reaches a justifiable contractual retirement age. Once an employee has notified you of their intention to resign, they must complete a notice period. The length of this notice period can be found in the employee’s employment contract. During this period, you can begin your search to find a replacement for the role. It’s also worth noting that you can pay the employee to not work through their notice period. Notice periods in Ireland Notice periods in Ireland vary by each employee’s employment contract and often their length of service. There are, however, two common types of notice to keep in mind: Contractual notice: You can decide the amount of contractual notice an employee must give. For instance, two months’ notice may be required for an employee who has worked with your business for two years. Statutory notice: This is the length of notice an employee is legally required to give. This will depend on their length of service. If an employee has worked with your business for at least 13 weeks, they must give you at least one week’s notice. However, one week’s notice is generally too little time to arrange a replacement. This underlines the value of an appropriate contractual notice period that works for your business. Next steps When an employee of yours decides to resign, it’s only natural that you may try to convince them to stay. After all, they could be one of your highest achievers. If instead you accept the resignation, there are some key steps to follow: Get the resignation in writing: Written confirmation of the resignation must include the employee’s name, the date, and a signature. Seek a resignation letter regardless of the length of employment. Respond to the resignation: Acknowledge your acceptance of the resignation. This can be a written or verbal response. You can also send a resignation email with the notice period confirmed. Decide on the notice period: Do you want the employee to work their full notice period? Confirm your decision with the departing employee. Prepare a handover pack: A handover pack for the departing employee’s replacement will come in handy when they arrive. Conduct an exit interview: This interview allows you to understand the employee’s reasons for resigning. You’ll also be able to make improvements to their role or management practises based on that feedback. Retrieve business property: Retrieve business property from the departing employee. These items could include computers, devices, or their uniform. You must also arrange the employee’s final wage payment. Failing to do so can result in a Workplace Relations Commission (WRC) claim. Finally, try to end the professional relationship on a positive note. After all, the departing employee may return to your business down the line. Moira Grassick is Chief Operating Officer at Peninsula

Oct 11, 2024
READ MORE

What does Finance Bill 2024 mean for employers and small businesses?

Finance Bill 2024 introduces key updates on tax reliefs for employers and private businesses. Pat Mahon breaks down the most significant changes From an employment and personal tax standpoint, the majority of the legislative actions contained in Finance Bill 2024 are aligned with announcements made on Budget Day. However, some newly announced measures in the Finance Bill are likely to be of interest to employers and private businesses. Employment Investment Incentive Finance (No. 2) Act 2023 brought several changes to Employment Investment Incentive (EII) relief to ensure the relief complied with amended EU state aid rules. The most fundamental change concerns the rate of tax relief. Finance (No. 2) Act 2023 restricted the maximum effective rate of EII relief for follow-on investments to 20 percent. This change was implemented based on an initial interpretation of EU state aid rules. However, on further developments, it appears that there is flexibility in the EU state aid rules for the 35 percent rate to apply to follow-on risk finance investments where the company has been in existence for less than ten years or within seven years of its first commercial sale. Finance Bill 2024 has recognised this rate of relief on a retrospective basis for shares issued on or after 1 January 2024. This is a welcomed change for the Irish scale-up sector. Other relevant changes to the regime were: An extension to the deadline for processing the relief from four months post-year-end to 31 December in the year following the year in which the shares were issued. The extension of the operation of the relief to 31 December 2026. The amount upon which an investor can claim tax relief under the scheme has increased from €500,000 to €1 million. Start-Up Refunds for Entrepreneurs The amount of Start-Up Refunds for Entrepreneurs (SURE) relief that an investor can claim annually has been increased from €100,000 to €140,000. This results in a total maximum of €980,000 over seven years. For SURE relief being claimed where a loan is converted to eligible shares, a business plan must be in place in advance of the date of the issue of the loan. The same change for the rate of relief from 20 to 3 precent for follow-on EII investments also applies to SURE claims.   Start-Up Relief S486C TCA 1997 For accounting periods beginning on or after 1 January 2025, in addition to providing the current relief relevant to the amount of employer’s PRSI borne by the company, relief will also be available by reference to the amount of Class S PRSI paid by a director of the company. This is subject to a maximum of €5,000 employer’s PRSI per employee, €1,000 Class S PRSI per company director and €40,000 overall. R&D tax credit  The amount of refundable R&D tax credits that can be paid to a company in a year has been increased from €50,000 to €75,000. CGT retirement relief Finance (No. 2) Act 2023 increased the age limits for CGT retirement relief purposes from 65 to 69 years. However, it also introduced a new maximum limit of €10 million on disposals of qualifying assets to children up to and including the age of 69 years. These changes were due to take effect from 1 January 2025. While the increased upper age limit will remain in place, amendments introduced in Finance Bill 2024 propose a clawback period of 12 years in relation to disposals of qualifying assets in excess of €10 million made by an individual between the ages of 55 and 69 years (inclusive) from 1 January 2025. The relief will operate to defer any CGT which would be due by the parent disposing of the asset to the earlier of: the date on which the shares are disposed of by the child; or the expiration of 12 years from the date of the disposal. Where a qualifying asset on which retirement relief is claimed is subsequently disposed of by the child within 12 years of the transfer, the child will be assessed on the deferred CGT in addition to any CGT arising in respect of the gain accruing to the child. However, if the qualifying asset is held by the child for at least 12 years, the CGT will be abated. This change is to be welcomed and will ensure that transfers of successful businesses to the next generation are not penalised subject to a number of requirements being satisfied. Angel investor CGT relief Angel investor CGT relief was introduced in Finance (No. 2) Act 2023. The relief provides a reduced CGT rate for qualifying investments made by a qualifying investor in a qualifying company. The reduced CGT rate is 16 percent for direct investments or 18 percent for investments made by a partnership. The relief was restricted to a lifetime limit of €3 million on gains. The new Finance Bill increased the lifetime limit on gains from €3 million to €10 million. The commencement of the relief is subject to Ministerial Order. Small benefit exemption Finance Bill 2024 confirms the increase in the small benefit exemption threshold to €1,500 per annum. There is also a very welcome increase in respect of the number of vouchers or benefits that qualify for the relief, with five gifts or vouchers now being eligible for relief providing the cumulative value does not exceed €1,500 per annum. Surprisingly, the Bill also states that the exemption will cease with effect from the year of assessment 2030 onwards. PAYE statute of limitations There is a provision to amend the time limits within which the Revenue Commissioners can raise PAYE assessments against employers for tax years 2025 et seq. However, there are some uncertainties in relation to the effect of the changes and further clarity will need to be provided once the draft provision is debated. Pat Mahon is Tax Partner at PwC

Oct 11, 2024
READ MORE

The coach’s corner -- October/November 2024

One of my direct reports manages a team of five. Nobody has complained about her, but there is a fairly high level of turnover on her team. She works incredibly hard to (mostly) very high standards. She sometimes spends too much time on unimportant issues and loses sight of the bigger picture. I have sat in on some of her team meetings: she is very task and deadline focused and quite tense. They are not bad meetings, but something is missing. She is very defensive around feedback and can get upset. A. It can be hard to help somebody who is well-intentioned, hard-working and, in their own eyes anyway, doing the right thing.  It sounds like she is quite anxious about her work or performance and the trick will be to find a balance between encouraging her (commitment, high standards, work rate) while ensuring that her singular focus does not hinder productivity or well-being.  While feedback may be part of the response, you may also need to broaden out her sense of what it is to be a manager, i.e. it’s not only about getting the work done, but also about motivating and developing people along the way.  It might also be useful to reflect on whether your direct report is clear on expectations, goals and priorities. It could be worth going back to first principles and discussing what else is important in their role (e.g. developing their direct reports).  You might also reflect on whether you keep them in the loop so they know what’s important for you. Weekly meetings where you (jointly) clarify priorities may be useful.  Assuming you have more than one direct report, and that you meet with this group from time to time, look at how you build connection and trust with them – creating a place where they can share challenges, reflect on learning (from failure as well as success), and discuss how they are working with their own reports, etc.  Each person’s real-life challenges can be a case study for the group to discuss. This encourages a growth-mindset and will help her, and her peers, reflect on what it means to be a leader. Share a resource on leadership (the book recommended below, maybe?) and discuss the ideas. You will probably also need to share feedback to encourage behavioural change. The success of this feedback will be dependent on three main factors:  Your relationship with the person – is there trust between you?   Their self-esteem – are they open to feedback and resilient?   Your skill in sharing feedback – ensuring feedback is balanced, using the right language, etc.  Building trust may allow you to find out what is driving her behaviour (e.g. perfectionism, anxiety, fear of failure, habit) which may open a deeper conversation. The BOFF model provides a useful framework for giving both positive and developmental feedback:  Behaviour: what have you observed? (heard, seen, experienced). This helps you describe rather than judge. Outcome: the impact of the behaviour Feelings: what you are happy about (or concerned about). Future: Next steps (for you, for them). It will be useful to approach the feedback with her, not from the point of ‘what’s not working’, but placing it in the context both of her career aspirations as well as developing her team.  Her development, her team’s development, her work-life balance, etc., should be standing items in your one-on-ones – and this will help you role model the type of behaviour you want from her. Julia Rowan is Principal Consultant with Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie

Oct 09, 2024
READ MORE

FDI in Ireland and the US Presidential Election

Three Chartered Accountants weigh in on how the outcome of the US presidential election might impact the future of foreign direct investment in Ireland, exploring potential economic shifts and changes to the corporate tax regime Paraic Burke Head of Tax PwC Ireland Despite international uncertainties, Ireland’s economy continues to be one of the best-performing in Europe.  Employment remains at a historic high, our fiscal position is strong and inflation is easing. Global companies here continue to see the opportunities Ireland presents as a gateway to Europe and further afield, with a highly skilled workforce in a stable business environment.  The impact of the US election on Ireland’s FDI from a tax and business perspective is two-fold:   1. The US election should determine how the US responds to the stalled element of global tax reforms led by the Organisation for Economic Cooperation and Development. While Ireland and EU member states have enshrined Base Erosion and Profit Shifting Pillar Two into their domestic law, the US has not.  Depending on a complex series of political factors, we could see increasing tensions between the US and Europe, which could have big implications for Ireland. Under a clause in the Pillar Two agreement called the undertaxed profits rule (UTPR) – a way of ensuring that multinational companies pay the globally agreed 15 percent corporate tax rate on their profits – the Irish Government, like others across the EU, could find itself having to tax US profits.  This would not sit well with the US Government. If it is not dealt with, it could have serious trade implications for multinational companies exporting from Ireland. The outcome of the election will very likely have a significant impact on the US approach in this context. 2. This US election will also determine who deals with the potential expiration in 2025 of the individual tax rate cuts introduced by Donald Trump in 2017.  As part of the overall strategy in this context, Democratic candidate Kamala Harris has outlined a plan to raise the US corporation tax rate to 28 percent (currently at 21 percent), but this is likely to be politically impossible.  On the other hand, if elected as US President for a second term, Trump has mentioned a reduction in the US corporate tax rate to 15 percent – although, again, this is likely to be impossible given the overall US fiscal position.  In addition, Trump has regularly stated that he may adopt a policy of applying tariffs on all US imports, a move that could greatly disrupt global trade, including Irish exports.  Cormac Kelleher International Tax Partner Forvis Mazars The upcoming presidential election in the US, due to take place in November, is delaying US companies in making their foreign direct investment (FDI) decisions.  Uncertainty over upcoming trade policy is causing new and existing US businesses to pause decision-making. However, it has not stopped firms from exploring and readying themselves for investment decisions in 2025. If the US introduces or strengthens existing tax repatriation programs post-election, as seen in the Tax Cuts and Jobs Act of 2017, it could incentivise US companies to bring profits and operations back home, possibly reducing FDI in Ireland.  However, given Ireland’s low corporate tax rate (12.5%) and status as a key EU hub for the technology and pharmaceutical sectors, US firms might still find Ireland an attractive location for their European operations. It will be interesting to watch the level of US engagement with the OECD’s BEPS 2.0 tax proposals.  This year has delivered probably the most significant level of tax reform practitioners are likely to witness.  The effective 15 percent rate has caused multinational groups to grapple with a plethora of complex and challenging legislation. Despite initial positive soundings from the US Treasury, achieving sufficient political appetite for the introduction of BEPS 2.0 (Pillar Two) has proved elusive.  The rules, however, will result in US-headquartered groups being affected by the global minimum tax rules from 2026 onwards.  If Pillar Two plans continue to have momentum, commentators will watch with interest to see how the US will react and whether retaliatory measures will be introduced. While tax policy is an important feature of Ireland’s FDI offering, there are many other features that are equally attractive and important to organisations when seeking to establish an international presence.  This is particularly important for firms establishing their first presence outside the US.  Ireland will continue to be an important cog in the global international tax expansion plans of US-based multinational groups. Fundamentals – including making Ireland an attractive location for people to relocate to – will play a greater role in years to come. Catherine Drysdale Consultant Barden Ireland's job market is highly interconnected with global trends and events. There are a number of key factors impacting the employment industry in Ireland at present, including the upcoming US election and potential impact on FDI, geopolitical conflicts, climate initiatives, uncertainty regarding policy and regulatory changes and interest rates and inflationary impacts. How these directly impact talent looking for opportunities within US companies headquartered in Ireland will be sector dependent. Certain sectors, for example, will be impacted more significantly by policy and regulatory changes including technology, pharmaceutical and financial services industries.   The challenges for acquiring talent may include: Changes in visa policies and global mobility restrictions; Cautious spending that could result in longer, more complex hiring processes coupled with the risk that companies will prioritise hiring local talent in the US due to shifting labour policies or cost-saving measures; A shift to contract opportunities, a trend we have already witnessed, reflecting employers’ desire for flexibility and a cautious approach to permanent hires; and Increased competition among jobseekers for a reduced number of opportunities, potentially leading to longer lead time to secure new roles. The stance companies are taking on hybrid and remote working arrangements remains in flux. We saw the recent announcement from Amazon CEO Andy Jassy regarding a mandatory full-time return to office. Whether others follow suit remains to be seen.  Organisations could adopt permanent remote working policies. While this may open up opportunities for a broader talent pool and flexible working arrangements, professionals in the Irish market would likely face increased competition from the global talent pool, potentially leading to downward pressure on salaries as companies seek cost-effective labour. With potential changes in the US economic environment post-election, given their established presence in Ireland, US companies with operations here may need to adjust their salary structures to remain competitive in attracting top talent, particularly if remote work opportunities expand.  A focus on enhancing their existing localised talent acquisition strategies, coupled with a strong emphasis on employer branding to showcase corporate culture and values, will help to make positions more attractive in a competitive market.  

Oct 09, 2024
READ MORE

“I firmly believe that, once you become an accountant, you can do anything you want”

David Lucas, FCA, the recently appointed Head of Corporate Finance at Azets Ireland, tells us about his career path, passion for supporting entrepreneurial businesses and plans for the future Tell us a bit about yourself, and when and why you decided to become a Chartered Accountant? I learned from my parents the importance of having a profession from an early age. My father was an engineer and my mother a teacher, so I was encouraged to choose a profession that would provide me with solid career opportunities.  At school, I was strong at maths and I have always been interested in business, so the BComm at University College Dublin was a natural fit. It wasn’t until my third year at college that I decided to pursue accountancy. Upon completing my degree, I went on to do a master’s in accountancy at Smurfit Business School.  I qualified as a Chartered Accountant with KPMG at the age of 24. From there, I moved into banking, spending eight years with AIB in corporate lending before moving into corporate finance. My career path has blended my accountancy training with my interest in business and my entrepreneurial spirit.  Has your career unfolded as you anticipated or were there some surprises along the way?  There have been a lot of surprises. I firmly believe that once you become an accountant, you can do anything you want.  I have found it to be an excellent and well-regarded qualification that can open a lot of doors to exciting opportunities.  Once you are a qualified accountant, no one can take it away from you. Whether you work in industry, practice or become an entrepreneur or business owner, the training and experience you gain as a Chartered Accountant will always stand to you.   I have always been interested in corporate finance and have a genuine interest in entrepreneurship, talking to owner-managed businesses and understanding what makes them tick.  In my various roles, I have explored these interests and carved out a career in corporate finance, working with entrepreneurial businesses across multiple sectors. I enjoy what I do today, and I’ve enjoyed the journey. Are you glad you made the decision to qualify as a Chartered Accountant? Absolutely, yes. There are thousands of Chartered Accountants in Ireland and beyond. It is a fantastic network and the training gives you a strong range of skills that can prepare you for any challenge, both inside and outside work. Among the people you have worked with over the years, who has been your biggest inspiration?   I have been lucky to have had a number of mentors and trusted friends, all of whom have influenced me in various ways. One of the best lessons I have learned is that people do business with people.  Bearing this central principle in mind, growing my network, and building strong relationships across the business community, has been a consistent feature of my career. If you can stay connected with those around you, you can bring each other forward. How has the role of the Chartered Accountant evolved since you joined the profession? The role of the Chartered Accountant has evolved significantly and is now viewed as that of a broader business advisor.  It is no longer just about balancing the books. Today, Chartered Accountants are trusted advisors, serving as the go-to person for clients on a wide range of issues, opportunities and challenges.  The training Chartered Accountants undergo is comprehensive, covering nearly all aspects of business and finance.  Clients can trust us not only to manage financial matters, but also to lead teams, train and develop staff, and support clients through every stage of the business lifecycle – from start-up to sale.  We play a key role in helping business owners realise the full value of their work and dedication.  What advice can you offer ACAs starting out on their career path today? The Chartered Accountancy qualification is world-renowned and world-recognised. It opens so many doors and opportunities in whatever walk of life you want to take on.  The training you receive and the people you meet will give you the tools to pursue opportunities as they arise. With this qualification, there are any number of directions you can take and potential employers and clients can be comfortable in the knowledge that you have a good grounding due to your experience and training.  I would say it is really important to be open to new challenges, even those outside your comfort zone, as they often provide the greatest opportunities for growth.  Networking is also key. Surround yourself with mentors and peers who can offer guidance and support and seek to learn from everyone.  Lastly, trust in your abilities and don’t be afraid to go for things and do your best. You won’t know how to do everything and don’t pretend to know everything – no one does – but always give your best.  Who do you admire most right now in business or public life? I greatly admire Jürgen Klopp, the former manager of Liverpool Football Club, for his leadership approach both on and off the field.  Early in his Liverpool career, Klopp emphasised the importance of building a cohesive team by ensuring that all players knew and respected the entire staff, regardless of their role.  This inclusive leadership style is rooted in treating everyone with respect and acknowledging that every individual plays a crucial part in the success of the team. Klopp fosters a culture of mutual respect, camaraderie and accountability. He understands that a strong team is built, not just on talent, but on unity and shared purpose.  His ability to connect with people on a human level makes others want to work with him and be part of his vision.  By creating an environment where everyone feels valued, he motivates the whole team to perform at their best.  His leadership shows that when people are treated with dignity and trust, they are more likely to consistently deliver exceptional results. This is something I strive to achieve with my team: nobody gets left behind. We are all in it together and we have each other’s backs. Tell us about your new role as Head of Corporate Finance at Azets Ireland? Our Corporate Finance Department provides a full range of services to mid-market businesses across Ireland ranging from buy side and sell side mergers and acquisitions, due diligence and valuations to debt advisory services.  Given our extensive service offering and the range of sectors we operate across, every day is different for me. One day could involve advising on the sale of a business, and the next performing detailed financial due diligence or raising debt or equity to help fund growth for a  business.  Every deal is different, and I enjoy getting to know my clients and their businesses to provide the best service possible.  My bread and butter is the buying and selling of businesses. These transactions require a corporate finance advisor to manage all aspects of the deal from early-stage preparation through to going to market, deal negotiation, project management and liaising with legal advisors right through to completion. My recent appointment as Head of Corporate Finance comes at an important moment in the growth trajectory of Azets in Ireland.  Over the next three years, we aim to double the size of our department with the addition of about 20 new recruits. The expanded department will enable us to advise on the growing number of transactions expected in Ireland’s mid-market sector over the medium term.

Oct 09, 2024
READ MORE

“Age discrimination is often under-represented in DE&I discussions”

Older professionals have much to offer in today’s multigenerational workplace, but many continue to experience the ill effects of negative attitudes and bias As Honorary Treasurer and Interim Chair of Age Action Ireland, Colm Nagle, FCA, continues to apply the experience honed over the course of a 45-year career begun in 1979 when he joined Stokes Kennedy Crowley as a trainee. The longest-serving director of Age Action Ireland, the national advocacy organisation for older people and ageing in Ireland, Nagle is proud of his ongoing contribution to its work, in particular its annual Positive Ageing Week. Kicking off this year on 30 September and continuing through the first week of October, Positive Ageing Week (PAW) celebrates the contributions of older people and promotes their agency. As the dust settles on another successful PAW, which this year featured over 500 events around the country, Nagle is turning his attention to other priorities on the agenda of Age Action Ireland, which has published two annual State of Ageing reports since 2022, highlighting the reality of growing older in Ireland. “Age discrimination is often under-represented in discussions of diversity, equity and inclusion, and, in the workplace, ‘age’ is often left out of company’s DE&I policies and initiatives,” Nagle says. “So far in our culture, we just have not had the same conversations and awareness-raising around ageism that we have had around other forms of discrimination. People haven’t learned to stop and think about ageing or question implicit beliefs they might have internalised.”  The World Health Organisation’s Global Report on Ageism, published in 2021, found ageism to be a prevalent and serious form of discrimination.  “The report demonstrated that we come to accept ageist beliefs from as young as four years old, and that these beliefs – about ourselves and others – can have seriously negative consequences, including worse health outcomes,” Nagle says.  There is, he adds, evidence suggesting that ageism is especially sharply felt in the labour field.  “Age Action’s ‘Are We Ageist’ poll found that unemployed persons were most likely to report recently experiencing age discrimination,” Nagle says. “Ageism is also known to interact with and compound other forms of discrimination like misogyny, classism or ableism, and so, to effectively eliminate these kinds of discrimination, we must also be aware of what ageism is and how it works.” A priority for Age Action is to involve everyone in our society in the project of reframing ageing and changing how we think, act, and feel about older persons.  Rethinking mandatory retirement age Many people now are living more active lives well into retirement age and want to defer full retirement for as long as possible.  “Fundamental to all of us continuing to have choice and control over our employment as we age is the existence of mandatory retirement clauses in contracts,” Nagle says. “Currently, our Equality Acts make an explicit exemption that allows for this kind of age discrimination, so that people can be forced to leave their jobs for no other reason than that they have reached a certain age. This is based on harmful stereotypes of older persons, that deny their skills and capacity.” Mandatory retirement implies that in older age, we are all the same, Nagle says. “It is deeply concerning that through our laws, the State is currently legitimising these kinds of ageist beliefs. It forces older persons out of workplaces and thus contributes to social exclusion,” he says.  “At Age Action, we have spoken to people who, 10 or 20 years on, are still angry and hurt by having been forced to retire. “We have long campaigned for the abolition of mandatory retirement and, in April, we made our case before the Oireachtas Committee on Employment, which subsequently recommended it be abolished. “It has already been outlawed in Canada, Australia, New Zealand and the US, in some cases for decades, and their labour markets are still functional and productive.” Negative bias and discrimination Well before retirement age, professionals can feel the negative effects of unhelpful biases as they mature through their careers. Seventy-five percent of respondents in the most recent Workplace Equality Study published by Matrix Recruitment identified ageism as an issue in today’s workplace. More than two-thirds, meanwhile, said workers over the age of 50 have fewer promotional opportunities then their younger colleagues, up 19 percent points on the previous year’s findings.   Commenting on the findings, Kieran McKeown, Managing Director of Matrix Recruitment, said they were “hugely disappointing.” “There is a widespread view that professionals aged over 50 have fewer promotional opportunities than their younger colleagues, but the reality is actually quite the opposite,” McKeown says.   “On a more positive note, the majority of respondents surveyed (89%) agreed that people over the age of 50 have as much to contribute to the workplace as those under 40, and this is an opinion we, at Matrix Recruitment agree with, given the calibre of the candidates we speak to on a daily basis in this age group.”  Despite this, McKeown believes older and more experienced professionals in the Irish market remain something of an “untapped talent pool.” “It is quite a complex issue but there appears to be an unconscious bias against older candidates and a poor understanding of, or appreciation for, what they can bring to a workplace,” he says.  “There is a view – a misguided one, in my opinion – that if you are older, you are less likely than your younger peers to be considered capable, adaptable or willing to embrace something new. “We are living in a digital age in which transformation is constant. Given that half of our respondents were of the view that more mature candidates may not have ‘21st century’ IT and digitalisation skills, it is likely that employers think the same way.   “In my experience, the over-50s are highly skilled and actively embrace technological change. Together with their years of experience, this is a group whose contribution to the workplace cannot be underestimated.  “Of course, how people in their 50s are perceived varies greatly from person to person but populations are aging, working lives are lengthening and graduates are joining the workforce later – so 50 is young.” The Matrix Recruitment Workplace Equality Study found that mature workers were considered to have better life skills and those aged over 50 were also rated higher when it came to mentoring and guiding colleagues.  “Forty-eight percent of our respondents consider mature employees to be more reliable workers than their younger cohorts, who statistically are more likely to job hop,” McKeown says.  “Employers find that there are lower staff attrition rates with more mature workers who also have strong interpersonal skills and an equally strong work ethic. And of course, they bring to the workplace years of life experience alongside the expertise they have built up in other roles.” The biggest challenges facing older candidates in today’s job market often “come from within,” McKeown says.  “Losing confidence, feeling they are too old to move job or upskill – or simply not knowing how to go about driving change – are all barriers we see among candidates in this age group,” he says.  “I would encourage anyone considering a career or job move to speak to a recruitment expert.  We can help identify any gaps in their skill set or job spec and help them recognise and promote their transferrable skills.  “There are also lots of tools, such as LinkedIn, which can help individuals stay on top of industry trends and grow their network and connections.  “At Matrix Recruitment we have supported and placed dozens of candidates over the age of 50, including those looking for a new job, a different career or re-entering the workforce after many years. My advice is to get off that fence, speak to an expert and go for it!” Liberation from the rat race For Pat Barker, FCA, sitting on the fence has never been an option. A trailblazer for women in the profession, Barker sat her accounting exams in 1973, becoming only the 20th female Chartered Accountant in Ireland. “I didn’t have a master plan, but seemed to rocket from one opportunity to another,” she says now.   “Generally, I was offered chances and I probably said ‘yes’ to too many and found myself active all the time. Luckily, I am fit and healthy and had lots of energy, and I reflect back on a very packed work and non-work life.”  Barker served her articles with Stokes Bros & Pim in Dublin and then relocated to the UK for a time, becoming Partner with an accounting firm in Manchester and working at Manchester University as a Principal Lecturer.  She was appointed Lecturer at Dublin City University in 1980 and progressed to Senior Lecturer, Associate Dean of the Business School and Vice-President, Academic. Today, Barker continues to lecture in business ethics at DCU. “When you get older, you are liberated from the competition of your career trajectory and you must then decide, ‘What am I going to do now? Am I going to take up golf and play bridge and drink Chardonnay in the afternoon?” she says. “I thought about that and decided it wasn’t for me and the joy for me in continuing to lecture and to serve on boards is that I no longer feel the need to prove myself through my work. “I do not want to lose my capacity – my skills – as a Chartered Accountant. I do not want to stop applying these skills. I want to continue learning about what interests me, and to apply what I learn in the work I do. “That professional decision-making and problem-solving part of me continues to matter enormously to me and, these days, it is enhanced by an ethical overview. Continuing to work when you are older and out of the rat race is a kind of liberation.” Benefits of a multigenerational workforce With an ageing population, longer life expectancy and delayed retirement, workplaces in Ireland are becoming increasingly multigenerational, says Dee France, Wellbeing Lead with Thrive, Chartered Accountants Ireland’s wellbeing hub.  “Fostering a positive age culture is crucial to the Irish workforce and its future, but the importance and value of older employees in their workplace can be seriously overlooked,” France says. “An ageing workforce isn’t a burden; it is an opportunity and there are many business benefits to having a multigenerational workforce.  “With age comes a wealth of experience and with skill and labour shortages reported, employers should not overlook older employees but focus instead on actively retaining and retraining them to address growing talent shortages.” As France sees it, older workers bring an abundance of knowledge, experience and skills that can be invaluable to employers.  “Longer periods in the working environment allow employees to acquire and cultivate significant soft skills that are often so important and beneficial to both the company and younger employees – interpersonal and communication skills, for example, problem-solving and critical thinking along with other leadership qualities and abilities,” she says. Supporting and advocating for age-inclusivity By supporting and advocating for an age-inclusive environment, employers can retain these important qualities in teams, ensure knowledge transfer and provide meaningful and symbiotic mentorship opportunities.  “Failure to address the needs of an ageing workforce is a common issue when employers look to implement supportive work practices,” France says. “In this digital era, there can be preconceived notions and age-related assumptions surrounding older workers, such as their ability to embrace digital transformation, reluctance to adopt new processes and ways of working, or difficulty shifting to changes in company culture. “Many employers can also overlook the importance of providing flexible working arrangements for older employees, making it easier for them to remain in the workforce.”  It is crucial to implement policies that allow accommodations for an ageing workforce for part-time work, job-sharing or remote working, France says. “I would also advise considering phased retirement plans that allow employees to reduce their working hours gradually while maintaining a connection to the workforce.  “This approach can improve retention and reduce stress, allowing employees to continue contributing to the business for longer.” Supporting older workers: advice for employers  Embracing age inclusivity is not just a social matter, it is a business matter too, writes Dee France.  As Ireland’s demographics evolve, businesses must adapt and embrace the potential an age-diverse workforce can unlock. Creating a culture of belonging to foster equitable, inclusive and thriving workplaces that value diversity, including age diversity, is key to supporting a growing workforce.  Employers should actively promote age-friendly policies, avoid reinforcing stereotypes and encourage intergenerational collaboration by fostering mentorship programs that allow employees to share their generational knowledge, creating a mutually beneficial learning environment. Employers should also develop and prioritise well-being initiatives that support an ageing workforce.  Offering health insurance benefits, wellness programs and access to resources like mental health support or fitness programs can significantly improve employees’ quality of life.  Additional tailoring of benefits such as regular health check-ins and adjusting job demands to accommodate any limitations an individual may have, can help ensure that employees can continue working comfortably. Supporting the well-being of older workers through tailored policies on health, flexibility and career development can help them stay engaged and productive, ultimately benefiting the wider organisation.  Positive ageing initiatives can also help reduce turnover, increase job satisfaction and enhance loyalty within the organisation. Positive ageing in the Irish workforce is not just a trend but a critical component of building a resilient, productive and inclusive workplace.  Employers must recognise the value of older employees and take proactive steps to support them.  By addressing common pitfalls and adopting best practices, employers can create a work environment in which workers aged over 55 feel valued, supported and empowered to continue contributing to the success of the organisation. Dee France is Wellbeing Lead with Thrive, Chartered Accountants Ireland’s dedicated wellbeing hub  

Oct 09, 2024
READ MORE

“More women are stepping into leadership positions with grace and strength”

Carmel Moore, FCA, Director at the One Moment Company, has seen the number of women in senior positions rise throughout her career, but, she says, true equality has yet to be reached From my convent school days to becoming a Chartered Accountant, an in-house Tax Director, a Big Four Tax Partner, and now running my own business, my career has been far from linear.  I never followed a grand plan or five-year roadmap – just trusted my gut, took risks and made mistakes along the way. My original aspirations were creative, but the harsh reality of Ireland’s job market steered me towards the accountancy profession.  As a law graduate, I started my career with KPMG. On the first day of my training contract, despite the new suit, the shoulder pads and the briefcase, the bus conductor still charged me the children’s fare.  This early career path laid the groundwork for an unexpected, yet deeply fulfilling, professional journey.  I moved to London (for romantic reasons) in the late 1980s. My heart was broken while I was there, but my career flourished. I spent 13 happy years on the in-house tax team at Barclays.  My next chapter took me to Pfizer, as Senior Director of the European Tax Centre. That role, filled with challenge and variety, alongside a hugely talented team, sparked my interest in coaching and leadership development. I became a Partner at EY in London, specialising in tax transformation, honing my expertise in change management and leadership development for deep technical experts, focusing on balancing subject matter expertise with soft skills, communication and handling ambiguity. Since 2017, I’ve been on a different path, co-founding the One Moment Company with my wise and wonderful business partner, Marty Boroson.  An unlikely combination of a zen priest and a Chartered Accountant, we are a specialist consulting and leadership business that is 100 percent focused on time, with a radical approach that is very different from traditional time management.  I believe that women have been taught to think about time differently to men. Growing up, I learned that time was a resource to be used for the benefit of others.  The women around me put their own needs last. It’s still a deep-seated belief that underpins the busy lives of the women I coach, and it holds them back.  I’ve always had an academic side hustle. I like to say it’s a love of learning, but it’s really a love of pens and stationery!  I have a master’s degree in English literature from King’s College London and I am a Master Practitioner in Neuro-linguistic Programming.  I’ve studied organisational development. I’ve done an Advanced Diploma in Personal, Leadership and Executive Coaching at Kingstown College. And now, my son has just signed me up for a refresher course in Irish. Every day really is a school day. Gender equity in the accounting profession I’ve witnessed significant progress in gender equity over the years, but it is never enough. I’ve been the only woman on a team several times (including at the gym this morning). I didn’t work for a woman until 2006.  I’ve experienced everything from clumsy flirtation, to pay disparity, to being overlooked for an overseas promotion opportunity (“But you have a baby! We didn’t think you would want to go!”) to being formally reprimanded for my more eccentric fashion choices.  I’ve run the gamut of the many indignities a woman can experience in the workplace.  My way of dealing with things early on was to be very, very professional – aka terrifying. One particularly mortifying round of 360 feedback revealed that is exactly how people experienced me: scary.  Even my handbag received an honourable mention in the feedback: “She wields her handbag like a battle shield.”   Being this way was exhausting. I would come home wrung out every evening, remove the suit of armour and collapse with a Chardonnay. A coaching course taught me that flexibility, softness and openness are part of leadership.  I haven’t always been vocal and visible when it comes to women in the workplace. As I became busier with family and with work, I relaxed my vigilance. I had this vague idea that things were better, weren’t they? I was so wrong.  A chance hosting of a young female leader’s event revealed that, despite advancements, women were still not feeling there had been any change.  They had the same questions that had troubled me all those years ago: imposter syndrome, not speaking up in meetings, not advocating for oneself, work-life balance issues, fear of failure, networking difficulties and lack of mentorship.  I resolved to do better and use my coaching and leadership development skills to support others. It has been a joy.  Today, more women are stepping into influential leadership positions in finance with grace and strength, though the journey is far from complete.  I would love to see a continued push towards not just increasing the number of women in leadership, but also ensuring their voices are heard and valued equally and integrated into commercial decision-making processes. Navigating career advancement and mentoring My career has been one of many organic steps. It has evolved through recognising opportunities as they have arisen.  I will give anything a go – I am open to new experiences. That, and retaining an Irish sense of humour. It’s defused many a tense steering committee! Mentoring and networking relationships are crucial for women as they progress in their careers. Everyone needs to take all the help they can.  There are potential mentors everywhere. Make a list of people you admire in your company, ex-colleagues, or someone interesting you met at a conference. Ask for advice. Good people love to help.  My own experiences with mentoring have been enriching; particularly the dynamic exchange in my reverse mentoring relationships. I would recommend it.  The quest for work-life balance Achieving work-life balance has been tough, especially in high-demand roles.  A major spine operation in 2014 forced me to reevaluate my priorities and slow down, reminding me that self-care isn’t optional.  I learned the hard way. The key is setting boundaries and being intentional about how you allocate your time.  If I could give one piece of advice to my younger self, it would be to trust your instincts.  The times when I ignored or overrode my gut feelings didn’t end well. Trusting your intuition in decision-making is crucial, as it aligns with your core values and aspirations.  The future of gender equality I joined a group of women leaders at the Institute recently to meet with the Minister for Finance, Jack Chambers. We discussed the unique challenges faced by women in their career journeys and how these barriers can be more effectively addressed by policymakers.  But the discussion went deeper. There was a profound exchange on how society needs to change for the better, to create and foster truly inclusive workplaces.  Women shouldn’t have to contort their lives to fit in. The Institute is committed to taking this agenda forward and we’ve been shaping what a dedicated women’s programme could offer. I would advocate for more courageous workplace conversations in real-time, rather than relying solely on policies and events.  It is important to address inequities as they occur and foster a more immediate and impactful learning environment for everyone. But women need the skills and confidence to host these conversations. This is where coaching and mentoring play their part. Reflecting on my journey, I find that each step and misstep along the way has contributed to a broader understanding of work and life.  Despite the miles travelled, I still feel as though I am just starting, eager to learn and contribute.

Oct 09, 2024
READ MORE

Tackling Ireland’s fiscal blind spots

Ireland is facing fiscal challenges ranging from unaccrued liabilities to over-dependency on multinationals, yet these critical issues remain largely absent from public discourse, writes Cormac Lucey The most basic task of accountancy is to measure the results of a business over a given period. In the public sector, however, things are different. Voters may not want to know how serious everything is. Even when they are told, they may not care.   The US government’s budget deficit is expected to hit 5.6 percent of national output this year – far above the three percent limit set in law in the European Union – yet the issue has hardly featured in this year’s US presidential campaign.  Likewise, Ireland’s media has a hard time featuring the stories and facts people need to know. Here are four major issues that are generally absent from Irish public debate. Issue 1: Unaccrued public sector liabilities While formal US government debt is estimated to equal 123 percent of US national income (GDP), unaccrued public sector liabilities were reckoned (in a recent edition of The Economist) to come to around 580 percent of GDP. In America, the bulk of the national debt iceberg lies below the surface.  The same situation applies in Ireland. According to the Irish Fiscal Advisory Council (IFAC), the Irish government’s debt will equal €181 billion by the end of 2024.  However, a 2017 actuarial analysis carried out by KPMG estimated that the state’s unaccrued liability to PRSI contributors equalled €335 billion in 2015. On top of this, the state’s pension liability value concerning public service employees was estimated to be €176 billion at the end of 2021.  Actual state debt vastly exceeds publicly measured debt.  Issue 2: Looming long-term fiscal problems  A 2023 report carried out by the Office for Budgetary Responsibility warned that the UK’s national debt was on track to nearly triple relative to the size of the economy, from 99 percent of GDP today to 270 percent by 2070.  The key drivers of this expected deterioration are an ageing population, and costs related to climate change and higher defence spending (because of rising geopolitical tensions). Each of these factors applies to Ireland.  In addition, by 2070, Ireland may have to face up to the fiscal costs of national reunification. Data from Britain’s Office for National Statistics shows that, for the financial year to April 2023, Northern Ireland raised £21.5 billion in revenue, mostly taxes, but spent £32.9 billion in current expenditure and £3.1 billion in capital expenditure, spending £14.5 billion (€17.5 billion) more than it raised. Issue 3: Dependence on tax revenues from multinationals Eighty-five percent of the state’s corporation tax revenues come from multinationals (MNCs), as do 55 percent of Ireland’s income tax revenues and 54 percent of VAT.  Apply this 54 percent share to the residual, smaller tax sources, and you can quickly see that more than 60 percent of the state’s total tax take is derived – directly and indirectly – from the multinational corporation (MNC) sector.  Meanwhile, the EU wants to strangle Ireland’s MNC golden goose, Donald Trump wants MNCs to repatriate their jobs to the US and Neil Morris – Amazon’s boss in Ireland – has warned that Ireland is “becoming complacent about foreign direct investment.”  Issue 4: Growing complexity and politicisation risk smothering productivity The reason we live vastly improved lifestyles compared to our antecedents 200 years ago is not that we are intrinsically superior but because of much higher productivity.  However, there is little appreciation of the central importance of productivity, or of how it can be smothered by needless complexity and politicisation of the rules we must operate under.  The common feature of these four issues is that, while they are extraordinarily important, they have barely featured in public debate.  Sadly, the media in Ireland and Britain is dominated by plausible and pleasant talkers who have little understanding of what’s really going on. As a result, amiable spoofing wins out over hard facts.  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland *Disclaimer: The views expressed in this column published in the October/November 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.  

Oct 09, 2024
READ MORE

Call for accountants to teach real-world skills to the next generation

The world of academia is crying out for accountants who can teach valuable skills to students based on real-world experience, writes Dr. Neil Dunne, FCA Universities need accountants to teach accounting. This seemingly obvious fact is sometimes overlooked in third-level institutions, however, where academic credentials such as a PhD outrank professional accounting qualifications.  Consequently, universities may assign non-accountants to teach technical accounting courses, a situation hard to imagine in other professional fields – law or medicine, for example.  Professionally experienced personnel truly bring a subject alive. Without them in our lecture theatres, we forsake education rooted in the ‘real world’ of professional accounting, and thus risk deterring students from an accounting career. Academia needs qualified accountants, but we also need them to join academia in an informed manner. Here are four points to consider if you are thinking of making this move. Heed the signs There may be indicators that academia is for you. For me, my parents were both teachers, and I was always comfortable in explaining things to others when working as an accountant. Additionally, I enjoyed accounting at school, at university and during my ACA training. Speak up Don’t let a fear of public speaking hold you back. Although my own natural disposition is far from extroversion, I teach (which is a role I am passionate about) to students (whose progress I care about) in an ‘extroverted’ manner. When you are involved in something you care about, you can transcend quietness, shyness or introversion. Research is king To work at most colleges, you will need to have commenced a PhD at the very least. A PhD needs a supervisor. So where to begin? My approach was to attend the annual conference of the Irish Accounting and Finance Association (IAFA). I knew nobody there my first time, but everyone was welcoming. There, I found an especially interesting seminar, which led me to my own PhD supervisor, Professor Niamh Brennan at University College Dublin.  Mind the gap There is usually an initial income fall associated with moving from a professional role to academia, but with time and progress this gap can be bridged. What newcomers may not anticipate, however, is a parallel status change. Moving to academia means we ‘start again,’ in a sense, at the foothills of a whole new mountain. For me, this was a short-term price worth paying for the autonomy, flexibility and meaning associated with an academic role. I would advise any Chartered Accountants curious about academia to investigate more. Reach out to the IAFA, a professor whose classes you may have enjoyed, or to others that have completed PhDs. I ‘made the leap’ myself 17 years ago and have never regretted it.    Dr. Neil Dunne, FCA, is Programme Director and Assistant Professor in Accounting  at Trinity Business School, Trinity College Dublin

Oct 09, 2024
READ MORE

The impact of sustainability reporting on the SME supply chain

Accountants will play a critical role in helping SMEs manage the impact of new sustainability reporting requirements on their supply chains. Niamh Brennan, Louise Gorman and Seán O’Reilly explain why The EU’s Corporate Sustainability Reporting Directive (CSRD) was transposed into Irish law in July 2024. Those in management and accounting functions in some of Ireland’s large companies have struggled to interpret the Directive’s requirements.  The legislation will require reports under European Sustainability Reporting Standards (ESRS) from 1 January 2025 for the 2024 financial reporting year.  In recent years, many large companies have voluntarily reported sustainability information under the Global Reporting Initiative (GRI) and the Taskforce for Climate-related Financial Disclosures (TCFD) frameworks.  Moreover, the environmental topics covered by the ESRS are derived from the EU Green Taxonomy, with which large entities in certain sectors have already reported alignment. This alignment prepares them for the CSRD requirements to some extent.  Listed SMEs will not come within the scope of the CSRD until 2027 (for the 2026 financial year), with an opt-out for two further years to 2029 (for the 2028 financial year).  Nonetheless, many SMEs, both listed and unlisted, will experience the effects of sustainability reporting requirements before these dates. Significance of the value chain The ESRS require disclosures on material environmental, social and governance topics. Such disclosures must detail the undertakings’ own operations as well as those throughout their value chain.  The value chain refers to the full range of activities, resources and relationships related to the undertakings’ business model and the external environment in which they operate.  In Ireland, many large companies’ activities, resources and relationships involve SMEs. Examples include financial services institutions with SME customers, and food and beverage producers with SME suppliers.  The implication of such relationships, in ESRS terms, is that large companies must gather sustainability information from SME value chain partners. Reporting challenges for SMEs  We have conducted two research studies on sustainability reporting for Irish SMEs. Our first study employed the GRI framework, and our second used the EU Green Taxonomy, to assess SMEs’ reporting preparedness.  Mindful of SMEs’ strong reliance on their Chartered Accountants for reporting and advisory needs, we engaged with professional Irish accounting practitioners to gain insights into the challenges they face.  Both studies were conducted in 2022 in anticipation of the publication of the ESRS by the European Financial Reporting Advisory Group (EFRAG). Our findings are highly relevant now that sustainability reporting is legally mandated. The findings of both studies indicate that cost is the greatest barrier encountered by SMEs.  In particular, set-up costs, ongoing data management expenses and potential operational changes, are likely to prevent the average SME from collecting and reporting accurate and reliable sustainability data.  Resources, particularly human resources and associated training costs, also pose a substantial impediment to implementing a sustainability reporting system. Related to this, both studies identify a significant sustainability knowledge gap within SMEs.  While an implicit understanding of the importance of environmental and social sustainability exists, many SME managers and employees have not received education on the necessary topics or metrics which must be disclosed, many of which are scientific or highly specialist in nature.   Finally, access to the necessary technology to manage and report sustainability information is limited. Appropriate data management and reporting systems have only recently become available, at a price point that typically only large companies can currently afford.  With these issues in mind, future problems are envisaged as large undertakings request sustainability data from SME customers and suppliers for ESRS reporting. Supports for SMEs Supports could help to alleviate the challenges facing SMEs over the coming years. Our research found that national or EU governmental grants, tax incentives or carbon credits may assist SMEs in overcoming cost-related challenges.  The accounting practitioners in our studies also recognised that education and training in sustainability reporting for SME management and relevant employees may need to be subsidised.  Beyond financial supports, participants in our study indicated that simplified disclosure requirements would be appropriate for SMEs.  Since we reported these opinions from our study, EFRAG has published an exposure draft of Voluntary SME (VSME) sustainability reporting standards for small non-listed enterprises.  The exposure draft presents a modular approach that SMEs can adopt on a phased basis.  Alongside simplified reporting requirements, another non-financial support deemed suitable by our respondents was the establishment of a state-sponsored or equivalent body to provide SMEs with consultancy, resources and tools for sustainability reporting.  The Department of Enterprise Trade and Employment’s recently established National Enterprise Hub represents a valuable opportunity to aid Irish SMEs in meeting sustainability data demands from larger companies. The path ahead for SMEs In the immediate term, large undertakings collecting sustainability data from smaller value chain parties can avail of transitional provisions when data is not available in the first two to three years of reporting.  Nonetheless, such reliefs are limited amidst a strong impetus across Europe to set and achieve Greenhouse Gas emissions’ reduction targets in line with the Paris Agreement.  Without data from value chain parties, measures of Scope 3 emissions reported by large undertakings under the climate change standard, ESRS E1 Climate Change, will be inaccurate and misleading.  At a time when greenwashing is considered almost akin to financial fraud by the general public, large undertakings may impose pressures on small enterprises to produce relevant measurements, even if regulators do not.  Failure to do so may cost SMEs valuable business relationships. Disclosures required under ESRS E4 Biodiversity and Ecosystems will also impact Irish SMEs in value chains in sectors such as agri-food. With the Circular Economy Act signed into Irish law in 2022, reporting on the circular economy under ESRS E5 Resource Use and Circular Economy may be deemed a material topic for many companies.  ESRS E5 requires extensive discloses on product lifecycles and may well also necessitate data collection from SME suppliers as well as from SME consumers.  In fact, it is important not to consider SMEs solely from a supplier perspective. In terms of social sustainability, ESRS S4 Consumers and End-Users sets out reporting requirements on consumers’ use of goods and services, with a particular emphasis on health and safety.  SMEs intermediating between large companies and end-consumers will also be required to report upstream to larger companies in value chains.  Additionally, ESRS S2 Workers in the Value Chain requires large undertakings to report on the composition of suppliers’ and customers’ workforces, as well as their working conditions. Sources of support Our research findings, coupled with an analysis of the ESRS requirements, clearly indicate that support for SMEs is vital to ensure they retain strong positions within value chains in Ireland and across the EU.  Prompt development of the VSME standards is essential. Without standardisation, SMEs face requests from multiple supply chain stakeholders to provide various types of data in different formats.  The introduction of the VSME standards in a manner that encompasses guidance to larger firms on best practice in data collection from smaller value chain partners may ease the reporting challenges for undertakings of all sizes.  The role the accounting profession will play is integral, as smaller entities will need sustainability reporting alongside traditional accounting services.  Chartered Accountants Ireland offers advice, education and representation for members in the area of sustainability reporting.  As these requirements becomes a priority for SMEs, the Institute will continue to provide support to Chartered Accountants navigating the nuances of this major development in accounting and reporting. Niamh Brennan is Michael MacCormac Professor of Management at University College Dublin Louise Gorman is Assistant Professor at Trinity College Dublin  Seán O’Reilly is Assistant Professor at University College Dublin

Oct 09, 2024
READ MORE

The CSRD – more than just compliance?

Companies complying with the Corporate Sustainability Reporting Directive could see real business benefits, but the right mindset is crucial, write David Connolly and Alba Boshnjaku At its core the Corporate Sustainability Reporting Directive (CSRD) is a reporting requirement, but it should not be viewed merely as a compliance exercise.  Companies within the scope of the Directive will be reporting in a standardised way. This means that sustainability statements could become a powerful tool for communicating more effectively with their stakeholders.  The CSRD could potentially enable these companies to build trust, enhance their reputation and strengthen their accountability.  This scenario is not dissimilar to existing accounting standards, whereby the requirement for companies to report financial information to investors, lenders and other stakeholders, has facilitated better and more transparent comparability between businesses operating in the same industry. Ignoring sustainability is no longer an option. Companies must be aware of, and report on, the impacts they have on people and the environment, as well as the sustainability-related risks and opportunities they face in the short, medium and long term.  Therefore, the CSRD gives companies an opportunity to understand what matters to them and their stakeholders. It allows them to re-evaluate their business to gain a competitive edge and potentially attract new customers, talent and capital, thereby strengthening their strategic resilience.   C-suite executives should recognise the potential the CSRD has to help steer their organisation towards a future that balances profitability with environmental and social responsibility governed by robust control frameworks.  Before exploring the potential benefits, however, let’s first revisit some of the key concepts of the CSRD. Europe: leading the way in sustainability reporting  An estimated 40,000 companies based in the European Union will be brought within scope of the CSRD on a phased basis, starting this year and continuing through 2028. Reporting obligations apply to all large and listed companies, including small and medium sized entities (SMEs), except for listed micro-enterprises. The size category into which an undertaking or group falls is defined by establishing thresholds in relation to net turnover, gross value and average number of employees during the financial year.  A large undertaking or a large group will, for example, exceed at least two of the three following criteria: balance sheet totalling €25 million; net turnover of €50 million; an average of 250 employees.  These criteria, including the ones for SMEs, are established in the Accounting Directive at EU level and transposed in national legislation, which companies must consult to determine whether they are captured within the scope of the CSRD. Certain non-EU companies with listed subsidiaries or significant operations in the EU market are also required to report. Non-EU companies that fall under the scope of the CSRD need to have: Net turnover of more than €150 million in the EU for each of the last two consecutive financial years;  A large or listed EU subsidiary, or EU branch, generating over €40 million in the EU. The requirement for certain non-EU companies to report will impact some companies established in Northern Ireland where they meet the relevant threshold criteria.  Ireland transposed the CSRD in the Companies Act in July 2024. Companies should carefully consider the relevant provisions to determine whether they fall within scope. The first wave of companies (large, listed companies with over 500 employees) have already mobilised their teams to get disclosure ready as they will be publishing their sustainability statements in the first quarter of 2025 for the current financial year.  Companies within the scope of the Directive must prepare their sustainability statements in line with the European Sustainability Reporting Standards (ESRS). The first set of twelve sector-agnostic standards have been adopted by the European Commission and are directly applicable to all EU member states.  Sector-specific standards are under development and proportionate standards for listed small and medium-sized entities are also expected.  Two of the standards – ESRS 1 and ESRS 2 – are cross-cutting and mandatory for all. The remainder, structured under Environmental, Social and Governance (ESG) pillars, are subject to the outcome of the materiality assessment. Companies will need to undertake a double materiality assessment to decide what they will need to report on.  They will have to identify and assess the impacts of their business on people and the environment (impact materiality) and the risks and opportunities the outside world poses to their business (financial materiality).  As part of this process, companies will need to understand the business and regulatory environment in which they operate and map their value chain. The value chain is defined as the full range of activities, resources and relationships related to the undertaking’s business model and the external environment in which it operates.  The value chain encompasses the activities, resources and relationships the undertaking uses and relies on to create its products or services from conception to delivery, consumption and end-of-life.  As part of their double materiality risk assessment, companies will also need to identify material- and sustainability-related impacts, risks or opportunities relating to their value chain across time horizons.  Once they have identified their material matters, they will then need to identify the material disclosures and data points to be reported in the sustainability statement.  The sustainability statement will be subject to limited assurance, with added responsibilities for audit board committees. Companies will need to implement robust control frameworks that ensure high quality, reliable and comparable sustainability information. The CSRD: a competitive edge  The CSRD offers an opportunity for companies to gain a competitive edge, because it requires that they report, not only on the material impacts they have on people and the environment, but also on the potential risks and opportunities they face.  For example, supply chain disruptions caused by climate change or dependencies on scarce natural resources could lead to operational risks for companies, which could then take the form of credit risks for financial institutions. Similarly, negative impacts on employees or affected communities could lead to litigation and reputational damage. On the flipside, investment in green technology or innovation could generate profit and add shareholder value.  By treating double materiality assessments as a box-ticking exercise, companies will miss the opportunity to better understand their business and make more informed strategic decisions.  A thorough, data-driven assessment should take into consideration value chain relationships, sector and geographical exposures. Supported by stakeholder insights, this approach can help a company to identify the existing and anticipated effects of sustainability on its business model and strategy, including risks or opportunities related to its financial position, cash flow and access to capital.  The double materiality assessment is dynamic and requires companies to think and assess what is material, not only this year, but in the medium to long term – and how this will impact its wider business plans and strategy.  For C-Suite executives, the results of the double materiality assessment could yield insights that enhance efficiency, improve performance and help them set realistic targets, all while demonstrating their company’s commitment to transparency. Opportunity for increased internal accountability  Under the CSRD, companies will need to report on the processes they have in place to identify and manage material sustainability matters. The preparation process will trigger important internal questions that require owners and demand accountability.  Are our policies and actions effective? How are we tracking the effectiveness of our targets? Is our data accurate? How robust is our internal control framework? Is sustainability integrated into our risk management process? What is the role of the Board in sustainability reporting?  These are only a small fraction of the questions companies will need to ask themselves to ensure that their reports are CSRD-compliant. These are also questions that could help companies become efficient and foster a transparent and risk-focused culture.  Further, reported sustainability information, such as financial reporting, will need to be reliable, accurate and comparable. What gets measured gets done.  By having to define baselines and measure progress from year to year, companies must ensure that time and resources are adequately allocated to set the business up for success.  Communicating what matters to stay ahead  Companies will have to report on what is material and relevant to stakeholders and, with stakeholder expectations evolving, ongoing engagement will be key.  Investors, employees, customers, suppliers and the public at large are becoming more aware of the sustainability impacts of companies, so they can make informed, ethical decisions.  Some stakeholders will be more interested in the sustainability credentials of companies than others. While customers and employees will take account of sustainability when deciding where they spend their money or where they work, funders and regulators will have more than a passing interest.  In 2023, according to the latest World Investment Report, the value of sustainable investment products, both bond and equity, reached more than $7 trillion, up 20 per cent on the previous year. Both investors and lenders rely on accurate and transparent information to make informed decisions, meet their own reporting requirements, and mitigate greenwashing risks. C-suite executives should be prepared to answer their questions. Regulatory requirements are becoming increasingly onerous across industries and regulatory bodies worldwide are pushing for uniformity and transparency in sustainability reporting.  While climate change has dominated the regulatory agenda in recent years, other environmental and social issues are also coming into focus, including human rights and labour practices within supply chains.  As new requirements are introduced globally – for example, IFRS sustainability disclosures –businesses operating across jurisdictions will need to think about interoperability to ensure consistent messaging and compliance.  By understanding who the users of the sustainability information are, and what they need to know, companies have scope to build trustworthy relationships that could benefit their market position, value and access to capital, while also ensuring compliance. Cultivating a winning mindset With the right mindset, companies complying with the CSRD could see real business benefits. The CSRD is a function of the European Union’s wider Green Deal, designed to revitalise and transform the European economy by decoupling economic growth from resource use to ensure long-term sustainability.  This will require a focus on innovation, new technology, sustainable products and services, responsible and sustainable business practices, employment and supply chains.  So, while companies prepare for their first year of CSRD reporting, C-suite executives should be thinking about potential opportunities and risks, emerging material sustainability issues, and how they can use sustainability reporting to improve their strategic resilience and business value.  David Connolly, FCA, is a Director in EY Financial Services Climate Change and Sustainability Services (CCaSS) Alba Boshnjaku is a Manager in EY Financial Services CCaSS, specialising in ESG reporting

Oct 09, 2024
READ MORE

Clarity needed to support compliance with CSRD in Irish law

Daniel O’Donovan considers the urgent need to resolve interpretative questions that have emerged following the transposition of the Corporate Sustainability Reporting Directive into Irish law The European Union (Corporate Sustainability Reporting) Regulations 2024 (the Regulations), also known as S.I. No. 336 of 2024, transposes the Corporate Sustainability Reporting Directive (CSRD) into Irish law.  This legislation marks a significant step in aligning Ireland’s corporate reporting framework with the EU’s broader sustainability goals, as outlined in the European Green Deal and the EU Action Plan for Financing Sustainable Growth. The Regulations were signed into law during the summer and came into effect on 6 July 2024. Their principal objective is to integrate the new corporate sustainability reporting obligations with Ireland’s existing financial reporting framework.  It is estimated that about 1,000 Irish companies will fall into the scope of these Regulations. The Regulations will be phased in over the next few years and will generally apply to public interest entities and companies qualifying as large under section 280H of Companies Act 2014.  Companies regulated by the Central Bank of Ireland qualify as large under this section, for example. It is welcome to see the implementing legislation. Ireland is among the first countries in the European Union to have implemented the CSRD, thus giving businesses in Ireland as much time as possible in the circumstances to assess its impact.   The impacted entities have been assessing the obligations in the legislation since it came into effect.  As with any implementation of such a complex European directive, some interpretative questions in relation to the implementing legislation have emerged. What follows are some of the key interpretative questions that have emerged to date. The definition of “Applicable Company” Several questions arise from the definition of “applicable company” in Section 1586 of the Regulations.  The definition refers to a provision contained in Part 6 of Companies Act 2014 to define its boundaries and, in particular, draws on the definition of a large company in section 280H of the Companies Act 2014.  This appears to have unintended consequences because an ineligible entity is a large company.  For example, certain small and medium entities and micro-entities that fall within the definition of an ineligible entity may be included in year two of reporting pursuant to section 1587(1)(b), reporting on 2025 sustainability information, rather than being in year three of reporting pursuant to section 1587(1)(c), reporting on 2026 sustainability information.  Exemptions for certain subsidiaries Section 1594 of the Regulations provides an exemption for certain subsidiaries. However, the exemption appears to be more restrictive than the equivalent in the CSRD, because it appears to be limited to Irish subsidiaries of Irish holding companies and excludes Irish subsidiaries of EU holding companies. See first table below.  In addition, it appears that all subsidiaries that are themselves large public-interest entities (listed and non-listed entities) are precluded from taking the exemption – whereas the CSRD only excludes large subsidiaries listed on an EU-regulated market. Exemptions for certain holding companies that are subsidiaries Section 1598 of the Regulations provides an exemption for holding companies that are themselves subsidiaries, where: a higher parent undertaking prepares a directors’ report under Part 6; or  a non-EU higher parent provides a group report either in accordance with the sustainability standards or in a manner recognised as equivalent to them.  However, as “third country” in the Regulations is defined to exclude Member States, it appears that there is no exemption for holding companies that are subsidiaries of an EU parent. See second table below.  Further, this exemption appears to be restricted further than the CSRD, because all large public-interest entities are prohibited from availing of the exemption, whereas the CSRD only excludes large public-interest entities that are listed on an EU-regulated market. Transitional provisions for consolidated reporting The Regulations permits, in section 1607, a subsidiarity of a third country undertaking to report on a consolidated basis on behalf of a group until 2030 (artificial consolidation).  However, it appears that this provision only applies to financial years commencing on or after 1 January 2028 by virtue of its placement in Chapter 3 of the Regulations.  As such, companies that wish to avail of this provision may be unable to do so during a significant portion of the transitional period. Supporting sustainability ambitions The EU and Ireland’s shared ambition to lead in sustainability reporting, transitioning to a sustainable economy and economic model, it comes with an ambitious timeline.  For example, the period between the effective date of the Regulations and the end of the first period on which year one companies will report on sustainability, in accordance with the European Sustainability Reporting Standards, is just six months.  We believe that a stable and clear legal framework is essential for businesses to thrive in Ireland.  Ensuring that outstanding CSRD transposition matters are resolved promptly will help maintain Ireland’s strong reputation as an excellent place to do business.  It is in the public interest to provide companies with the clarity they need to comply with new laws effectively. We welcome The European Union (Corporate Sustainability Reporting)(No.2) Regulations 2024 (S.I. No. 498 of 2024) signed into law on 1 October. S.I. 498 of 2024 resolves some of the interpretative questions set out above, aligning: The exemption for subsidiaries that are themselves large public-interest entities with the CSRD, which only excludes large subsidiaries listed on an EU-regulated market from the exemption; The exemption for holding companies that are subsidiaries, with the CSRD, which only excludes large public-interest entities listed on an EU-regulated market from the exemption; and The commencement of the transitional provision regarding artificial consolidation with the CSRD, now available immediately. Significant questions remain to be resolved, however.  Accountants are committed to meeting the new sustainability reporting requirements, but we recognise that implementing the CSRD into Irish law is complex and that the necessary resources and expertise to prepare detailed and complex reports, and to obtain assurance on those reports, are still developing in the Irish market. By working together, we can ensure businesses have the support they need to meet these sustainability ambitions, aligning with the CSRD’s goals for 2024 and beyond. Time is running short. As the clock strikes the 11th hour, companies need to have clarity on the interpretative questions discussed in this article as a matter of urgency. Continued imminent engagement between the legislators and the legislates is critical to resolving these matters and ensuring our sustainability reporting ambitions are successfully achieved. Daniel O’Donovan is a Partner with KPMG and leads the firm’s Audit and Assurance Methodology Team

Oct 09, 2024
READ MORE

Accountants key to reaching Climate Act targets

Accountants have a critical role to play in assisting companies, both large and small, to get on their sustainability journey, writes Dee Moran Sustainability reporting is a term that is getting much more traction and interest than in the past and with due cause. From an environmental perspective, the latest report from the Environmental Protection Agency is encouraging in that Ireland’s emissions in 2023 were below the 1990 baseline for the first time in three decades.  However, the report also states that the Climate Act objective of achieving a 51 percent reduction by 2030 will not be achieved unless all sectors meet their indicative reductions.  Therefore, it is critical that we, as accountants, play our part in assisting entities to up their game, particularly in the area of sustainability reporting.  It has become clear in the past year or so that our members’ interest in this area has increased hugely.  Having over 600 members attend our two recent sustainability webinars is testament to this, as are the numbers signing up to the Institute’s certificate and diploma programmes in this area.  The transposition of the Corporate Sustainability Reporting Directive (CSRD) into Irish law on 5 July 2024 requires companies, depending on their size, to begin reporting from 1 January 2024.  Whilst the subsequent publication of the statutory instrument, (S.I. 336/2024) has been very welcome, there remain some areas that require clarification on interpretation before we can begin to write technical guidance for members.  In this special report, Daniel O’Donovan outlines these interpretations in a very clear and concise manner.  We have engaged with the Department of Enterprise, Trade and Employment and Minister Peter Burke, TD, FCA, on these interpretive questions, and other matters that require clarification. An amending statutory instrument, S.I. 498/2024, was signed into Irish law on 1 October 2024. While the S.I. provides some clarifications, outlined in Daniel O’Donovan’s article, there still remain questions that must be answered regarding the transposition. It is important that there is a shared understanding of the legislation, which will allow preparers to set up the processes and procedures necessary to report and comply with the CSRD.  In this special report, EY’s David Connolly and Alba Boshnjaku outline some of the requirements of the CSRD, and why ignoring sustainability is no longer an option for businesses.  They also discuss the importance of an entity having the right mindset, and that companies complying with the CSRD could see real business benefits and additional opportunities.  While approximately 1,000 companies in Ireland will eventually have to comply with the CSRD, there are thousands of other entities that will have to prepare to report on their sustainability information if they are in the value chain of an in-scope company.  This will place an additional burden on SMEs and a recent study undertaken by Niamh Brennan and Sean O’Reilly from UCD, and Louise Gorman from Trinity College Dublin outlines some of these challenges, and how accountants can assist them in managing the impact. A brief explanation of the research is outlined in their article. As accountants, we have a critical role to play in assisting companies, both large and small, to get on their sustainability journey.  We encourage you to upskill and be prepared to play a role in this journey.   Dee Moran is Professional Accountancy Lead at Chartered Accountants Ireland

Oct 09, 2024
READ MORE

A tough road ahead for Von der Leyen’s second term

EU Commission President Ursula von der Leyen will need to summon all her powers of persuasion if she is to deliver on her second term priority to improve EU competitiveness, writes Judy Dempsey Ursula von der Leyen is no pushover. During her first term as head of the EU Commission, the bloc’s powerful executive, she has focused on competition, trade, energy, data protection and climate change, stamping her own indelible mark on the job.  She has been hands-on. Colleagues who have worked with her note her need for control. Delegating has not been von der Leyen’s métier – nor communication, aside from her passionate support for Ukraine.  Her second term is not going to be easy. Yes, von der Leyen has commissioners on board who are aligned with her own conservative political leaning. Yes, she has a few, very experienced commissioners who served under her first term, if not before. And yes, she has her agenda – competitiveness – as her main focus. The number of newly appointed commissioners alone shows how determined von der Leyen is to bolster EU competitiveness in response to shifting global demands, including the rise of artificial intelligence.  Her second term will not be plain sailing, however – for three reasons.  First, many of her 27 commissioners have overlapping dossiers. This will inevitably lead to turf battles. Continued collegiality is not a given.  Second, the EU is obsessed with regulation. Its bureaucratic and regulatory processes often stifle innovation, and this will continue to be the case. Third is the role of EU member states. In recent years, with a few big exceptions, von der Leyen has dealt with countries that prefer to use the EU Council representing member states for their own agenda and interests. This is bad news for von der Leyen. France, and particularly Germany, have increasingly pushed their national interests before that of Europe. It has always been so, but France and Germany, the historic engine of EU integration, are no longer in sync.  French President Emmanual Macron – now a beleaguered leader who only recently formed a government after months of stalemate – wields little influence in the EU.  Macron’s big ideas about making Europe ready to take care of its own security and defence, and his warnings about the need to defend the essential values that make Europe what is today, have had so little traction. This is no thanks to Germany, where Chancellor Olaf Scholz has failed to engage intellectually with either France or the EU.  Scholz’s policies on immigration (border controls on Schengen countries), more monetary integration (blocking a banking union) and more political integration (blocking treaty change to get rid of some veto powers of the member states), point to a squabbling coalition of Social Democrats, pro-business Free Democrats and Greens, all holding up European integration.  They also confirm a German leader reluctant to embrace bigger-picture thinking for Europe’s future. EU member states opposing greater integration can hide behind Berlin. This is why Germany’s political and economic clout used to matter, and for the right reasons. It is different now – to the detriment of the EU and von der Leyen’s goals. Judy Dempsey is Non-resident Senior Fellow at Carnegie Europe *Disclaimer: The views expressed in this column published in the October/November 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.

Oct 09, 2024
READ MORE

“SMEs are the lifeblood of the Irish economy and we are here to support them”

As the Strategic Banking Corporation of Ireland celebrates its 10th anniversary, Chief Executive June Butler, FCA, tells us about its evolution and the outlook for SMEs today The Strategic Banking Corporation of Ireland (SBCI) was established in 2014 following Ireland’s exit from the EU-IMF programme, which was initiated to support the Irish economy due to the onset of the global financial crisis in 2008. Launched formally on 31 October 2014 by the Department of Finance and the National Treasury Management Agency, the aim of the SBCI at the outset was to ensure businesses could access funding where the private sector could not provide it. Today, the SBCI aims to help Ireland’s SMEs continue to grow, innovate and prosper. June Butler, FCA, was appointed Chief Executive of the SBCI in September 2021.  Tell us about the SBCI, what it does and how it has evolved over the last decade?  Starting out in 2014, the purpose of the SBCI was three-fold: to make access to finance easier for SMEs; bring down the cost of borrowing; and increase competition in the market, giving businesses more finance options. We have really evolved from our initial start-up phase as a provider of low-cost funding to On-Lending Partners to become a promoter and distributor of risk-sharing lending products that meet SMEs’ current financing needs. One of our key strengths is our ability to act as a conduit for EU-wide supports and bring them to the Irish market for the benefit of SMEs here. We have been successful in promoting competition in the SME financing market, by supporting new entrants and helping non-bank lenders diversify their product offering. We now have close to 40 On-Lending Partners, ranging in size from the main banks to smaller providers and Credit Unions. We provide our partners with low-cost funding and, because we can access lower-cost funding from a variety of sources, we can pass this benefit on to them, and they can then pass it onto their SME clients by way of reduced interest rates. Since the SBCI was first established in 2014, we have channelled more than €4 billion in low-cost flexible funding to over 60,000 SMEs in Ireland. You also offer risk-sharing guarantee schemes – how do they work in practical terms? Our business model has expanded from purely providing low-cost liquidity and wholesale funding at the outset to now offering risk-sharing schemes.  We do this in partnership with Government departments, which also provide funding for these schemes, alongside the banks, non-banks and Credit Unions that distribute them.  We have introduced several risk-sharing guarantee schemes, whereby we share the credit risk with the lender. The key benefit here is the availability of lower-cost and longer-term loans for businesses.  Our risk-sharing schemes also reduce the need for security for businesses, which helps more of them access loans because it reduces a “blocker” they might otherwise have faced when seeking finance. We access counter-guarantees from either the European Investment Bank (EIB) or the European Investment Fund. We structure this into a guarantee-type product whereby we provide an 80 percent guarantee to both bank and non-bank lenders. This means they can then provide better funding access to SMEs. Can you tell us about some of the loan schemes you have launched in recent years? In more recent years, I think we have been instrumental in responding to various crises that have limited the availability of credit to businesses in Ireland. Where there is uncertainty, the availability of credit tends to tighten up and our role here is counter-cyclical: we step in to provide guarantee schemes to make sure that credit continues to flow to businesses. We launched the Brexit Loan Scheme in March 2018, for example, in partnership with the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine. It was a €300 million scheme aimed at helping SMEs implement necessary changes to address the challenges posed by Brexit. We offered an 80 percent guarantee and that scheme was supported by the InnovFin SME Guarantee Facility, with financial backing from the EU under Horizon 2020 Financial Instruments. We launched the Ukraine Credit Guarantee Scheme in January 2023 – again, in partnership with the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine. That scheme facilitated the provision of working capital and medium-term investment finance to businesses adversely affected by the conflict in Ukraine, facing supply chain disruptions and increased input costs. Other examples include the Covid-19 Working Capital Loan Scheme, launched in March 2020, and our Covid-19 Credit Guarantee Scheme, which offered an 80 percent guarantee to participating lenders for SME loans. If you look back to the pandemic and its impact on everyone, including SMEs, there was so much uncertainty in the economy at that time.  Many businesses had to close their doors, but they still needed working capital. There were businesses that spotted opportunities to expand or take advantage of opportunities that arose. That is where we were able to step in with a State-backed guarantee scheme.  The reactive aspect of our role in supporting SMEs and the wider economy is very important. When there is a crisis, and the flow of credit slows, we can step in, make sure the flow of business funding continues, and encourage lenders to provide it. We also take a more strategic view of gaps in the market. Our Growth and Sustainability Loan Scheme, for example, supports SMEs, including farmers and fishers, investing in growth, resilience and climate action. It has been designed to encourage longer-term strategic investment. The SBCI has more recently moved into consumer lending. Can you tell us more about this? Just this year, we have evolved into providing a consumer lending product for the first time, launching a new low-cost Home Energy Upgrade Loan Scheme. The €500 million scheme is designed to help homeowners invest in energy efficiency.  They can borrow between €5,000 and €75,000 on an unsecured basis for a term of up to 10 years, availing of interest rates significantly lower than those available elsewhere in the market. We worked with the Department of the Environment, Climate and Communications on this scheme, which is underpinned by a loan guarantee from the EIB Group and a Government-funded interest rate subsidy. It is the first scheme of its kind for both Ireland and the EIB Group.  Our aim here is to address a gap in the consumer lending market and help promote Ireland’s energy transition by providing low-cost finance for homeowners who want to retrofit their properties to help with both energy efficiency and decarbonisation.  We have also just launched a new Green Transition Finance product for Irish businesses in partnership with Business Venture Partners. It is a €50 million debt fund to support Irish businesses investing in sustainable and green projects and assets, as well as those already operating in a sustainable manner. The loans on offer under this scheme range from €500,000 to €5 million for terms up to 10 years, with competitive interest rates and flexible repayment terms. What is your take on the outlook for SMEs in Ireland today, 10 years after the SBCI was launched?  It is a tale of two halves. On one side, there are a lot of opportunities out there for businesses to explore right now in areas such as digital transformation. Lots of businesses came a long way on this front during the pandemic, when we were working remotely and connecting and doing business online. During that period, we saw investment in things like e-commerce platforms and digital marketing, but there is still quite a way to go.  Digital tools and technologies can really help businesses with customer engagement and efficiency through investment in automated manufacturing and back-office functions, for example.  The second opportunity I would highlight for SMEs relates to sustainability. We are seeing that the SMEs investing in sustainability – be it solar panels, heat pumps or retrofitting their offices – are absolutely reducing costs. This kind of investment has a direct impact on the bottom line, and it is attractive to consumers who are increasingly prioritising green credentials when they choose products and services. The third opportunity for SMEs lies in export markets. We are seeing a lot of smaller businesses looking to identify new revenue streams and they often lie in markets outside Ireland. On the flipside, SMEs in 2024 are facing the challenges of labour market pressures, rising input costs and inflation. All these factors create pressure. The banking landscape has change significantly in the past five years, with the exit of KBC and Ulster Bank from the Irish market impacting the availability of finance.  We have worked hard to establish partnerships with more non-bank finance providers, such as Finance Ireland, Fexco and Linked Finance, so SMEs can have more access to alternative finance options. We are also focusing on Credit Union partnerships. Credit Unions have a national footprint, they are known and trusted in their local communities, and they are now developing into providers of SME finance, which we welcome. The need to focus on attracting new finance entrants, and helping existing players expand their product offering, is important to us at the SBCI.  Talk us through your own career path as a Chartered Accountant prior to taking up your current role with the SBCI. I studied law at Trinity College Dublin and, after that, trained as a Chartered Accountant with PwC. When I left practice in 2003, I joined Bank of Ireland. I started in the Group Internal Audit division and then spent many years in finance in a variety of roles. My last role with Bank of Ireland was in the Business Banking division and it was at that stage that I really developed a passion for working with Irish businesses.  I got to know them. I got to see how driven and innovative they are, so I was honoured when the board of the SBCI selected me for this role, which is also focused on serving Irish businesses, just from a different angle. What do you enjoy most about your role as Chief Executive of the SBCI? I really enjoy working with Irish businesses and feeling like we are genuinely making a difference, because our role is to fill the finance gaps for SMEs and make it easier for businesses to access funding for a whole range of reasons, be it working capital or finance for expansion or exporting into new markets. Every day, we see the benefit of what we are doing. We often hear that SMEs are the lifeblood of the Irish economy, and they really are. They provide significant employment, contribute to their communities and the whole team at the SBCI feels like we are making a difference to this critical sector every day. The part of my job I enjoy most is meeting the people we are helping – be they businesses owners, farmers or fishers – and hearing about the positive impact of what we do. We support a broad cross-section of the SME sector. 

Oct 09, 2024
READ MORE
12345678910...
Show Me More News

The latest news to your inbox

Please enter a valid email address You have entered an invalid email address.

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast
Antrim BT2 8BG, United Kingdom.

TEL: +44 28 9043 5840

Connect with us

CAW Footer Logo-min
GAA Footer Logo-min
CARB Footer Logo-min
CCAB-I Footer Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
LOADING...

Please wait while the page loads.