CFOs in Ireland are cautious about the year ahead but remain focused on balanced investment in business growth and innovation, writes Tom Hynes The biggest priorities for Ireland’s Chief Financial Officers (CFOs) in the 12 months ahead will include digitalisation and technological transformation, supply chain efficiencies, organic growth and the introduction of new products and services. Our Autumn Deloitte European CFO Survey has found a decline in business sentiment among CFOs in Ireland, however, with just 19 percent feeling more optimistic about the financial prospects of their companies compared with 61 percent in the Spring of this year. The figure is down from 63 percent in Autumn 2023 and comes as the proportion of CFOs who now feel less optimistic about their companies’ financial outlook has tripled, from eight percent in Spring 2024 to 28 percent in Autumn 2024.  Our survey results clearly show an increased wariness among CFOs in Ireland when it comes to financial risk.  Several factors are likely contributing to this, including the uncertain economic outlook and tight financing conditions. Geopolitical uncertainties, with fears over protectionism, trade disruption and high costs around labour and energy will also add to this.  Asked to select the factors likely to pose a significant risk to their business in 2025, 89 percent cited retaining and attracting skilled and qualified talent, with 76 percent raising concerns about the economic outlook and growth risks. A total of 76 percent identified cybersecurity risks, and 74 percent selected increasing regulations. The data for our Autumn Deloitte European CFO Survey was collected in September and October 2024 and reflects responses from 1,893 CFOs in 27 countries, including 54 in Ireland. The survey shows that the outlook for capital expenditure (CAPEX) among CFOs in Ireland remains positive, with 42 percent planning to increase their CAPEX over the next 12 months, reflecting a measured investment approach.  CFOs are acknowledging that they need to adapt to evolving regulations by maintaining robust compliance systems and proactively managing regulatory risks. A balanced approach is being applied to the business priorities identified by CFOs. Asked about the priorities for their business in 2025, 48 percent of the CFOs surveyed selected digitalisation and technological transformation. A total of 44 percent said they planned to review supply chain efficiencies, 37 percent selected organic growth, and 35 percent cited the introduction of new products and services. It is encouraging to see Ireland’s CFOs combining defensive strategies, such as reviewing supply chain efficiencies and fostering economic growth, with expansionary strategies, such as digitalisation and technological transformation.  Leveraging advanced technologies, like generative artificial intelligence, can assist companies in driving efficiency and innovation, providing them with a competitive advantage.  Combining investment in this area with enhanced operational resilience and sustainable development is a prudent approach that should position companies well for future success. The number of Irish CFOs planning to increase hiring has dropped significantly by almost half in the last year, down from 58 percent in Autumn 2023 to 31 percent in Autumn 2024.  The majority (81%) believe it is not an opportune time to take on greater risk on their balance sheet, up from 71 percent in Spring 2024. The proportion of CFOs anticipating revenue growth over the next 12 months has also fallen from 74 percent in Spring 2024 to 59 percent in Autumn 2024.  The proportion of those optimistic about an increase in operating margins has fallen from 53 percent in Spring to 37 percent in Autumn.  While they are right to be cautious, it is positive that the majority remain hopeful about revenue growth over the next 12 months and over a third still expect an increase in operating margins.  Tom Hynes is a Partner with Deloitte Ireland

With research revealing strong demand for accountants in Ireland, now could be the time to make your next career move supported by a careful exit strategy, writes Sinéad Brady Accountants were the second most sought-after professionals in the Irish market in 2024, according to new findings published by IrishJobs.  Based on data from TalentBank, the hiring platform’s CV database of over 1.4 million job candidates, this year’s findings ranked accountants as the second most in-demand professionals in the Irish market, behind site managers in the top spot and site engineers in third.  This is good news for accountants preparing to progress their careers in 2025, but if you are considering a move to a fresh role with a different organisation, remember that the decision to quit your current job will likely bring mixed emotions. This is where a clear and carefully crafted exit strategy can help you move on positively and without burning bridges.  Here are five recommended steps to strategically managing your move to a new role: 1. Get clear – why are you leaving your job? Clearly, understanding why you want to leave your current role is the first step in creating your exit strategy. You need this clarity for yourself – this is your career, and it is up to you to take the lead. These prompts should help you get a better handle on why you are choosing to leave your job. Are you happy in your job but feel the need to leave to grow professionally, learn a new aspect of your role or get the promotion you want? Would you like to work at an international organisation with global or European headquarters in Ireland offering opportunities to travel? Do you want to move to an organisation with a comprehensive remote working policy that might allow you to relocate? Do you want more money or the same money with less responsibility? Is there a cultural or environmental issue with your current job you feel uncomfortable with? This might include a toxic work environment, biased treatment, bullying or other forms of workplace ill-treatment. Do you dislike your boss, colleagues, your work, organisation or the sector you work in? As you answer these questions, you are likely to think of other reasons for leaving your current role. The priority here is to identify the reason or reasons why you are making this decision, as this will inform the rest of your exit strategy. 2. Establish your exit timeline Your reason for leaving will impact the duration of your exit timeline. For example, if you are leaving because of a toxic work environment or poor workplace behaviour, your timeline should be much shorter than if you are leaving but still enjoy your role.  If the former is the reason, seek support and advice – no job is worth your health. Otherwise, your timeline can span anything from weeks to several months or a year. 3. Allocate time to your job search Each week, allocate a block of time across the course of your timeline for functional tasks. Break your time allowance into weekly slots to tackle tasks, both short- and long-term.  Basic short-term tasks might include: Updating your CV; Developing your interview technique; Getting to grips with the job market; Setting up job alerts and professional profiles on job sites; and Researching companies and sectors with potential opportunities for you. More complex, long-term tasks might include: Preparing for job interviews by learning to tell the story of your career; Starting or intensifying your networking within your industry or professional bodies; and Connecting with people who may be in a position to open doors for you. These more evidence-focused aspects of your job search are very important. Ideally, each of the short-term tasks should be completed before you start to submit applications or make contact with recruiters. The more complex long-term tasks should be started and remain ongoing throughout your job search. 4. Remain focused in your current role It is very easy to take your eye off the ball in your current role when searching for a new job, but this is a big mistake. Staying motivated and engaged despite your intention to leave will be much better for you in the long run. You can do this by looking for opportunities in your current role you may not have considered before. Do you need/want to upskill, reskill or retrain and is this possible to do in your current workplace? What opportunities are open to you? Are there ways to build your professional profile you may not have thought about before? Can you put yourself forward for speaking opportunities, begin to coach or mentor or attend networking events? You may need help refining this part of your plan. If you do, don’t be afraid to ask for help. Getting this part right is vital as it will help to keep you motivated. You might also consider creating a handover file of what you do and how you do it, including workflows etc. This will make a massive difference to the person taking over in your role and most employers really appreciate it. 5. Decide who to tell you are quitting and when The timing here really depends on the reason you are leaving your role. If you are leaving due to unresolved issues at work, you may decide to only work your notice and tell your boss first (assuming the issue does not lie with your boss). If you are open to staying and happy to explore potential opportunities in your current organisation, the best time to talk is at the start. This helps keep lines of communication open, clear and transparent.  It will give you and your employer a chance to look at all options, and if you do decide to leave for another role elsewhere, it will give your employer sufficient time to replace you with minimum disruption. The benefits of an exit strategy Thinking carefully about your exit strategy is very important if you are in the market for a new job, but it is also important even when you are not currently looking for a new role.  A work exit strategy can help you avoid the trap of staying in a job that no longer serves you and may well be the key to setting you on a better career path in 2025. After all, that is the very least you deserve. Sinéad Brady is founder of The Career Psychologist

From education and the next generation, advances in technology and the evolving role of the accountant, to business and the economy, what can we expect in the New Year? As we look ahead to 2025 and the opportunities and challenges it will bring for our profession, the economy, business and wider society, our Society Chairs in Ireland and overseas give us their take on what we can expect in the 12 months ahead. Damien Carr, Chair, Chartered Accountants Ireland Leinster Society The new Corporate Sustainability Reporting Directive (CSRD) is set to have a major impact on our profession in 2025 and beyond. The CSRD is a significant regulatory framework introduced by the European Commission with the aim of enhancing transparency and accountability in sustainability reporting across the European Union (EU). This Directive was transposed into Irish law in July 2024, requiring a limited number of companies to report for periods ending on or after 31 December 2024, followed by large companies on or after 31 December 2025, and a gradual expansion to all entities meeting certain revenue thresholds by 2028. While some companies will not be required to implement the standard directly in 2025, they will nevertheless need to consider more than 1,000 data points to ensure compliance with the CSRD’s disclosure requirements. A lot of time and effort will be needed to gather this data in time to report, and I expect this to be high on the agenda for our members in 2025. The implementation of the CSRD presents both challenges and opportunities for companies in Ireland. Many of the data points incorporate information companies will not have reported on prior to its introduction. In some cases, they will need to start collecting data from scratch, both from internal sources and external sources in their value chain, such as suppliers and customers. Investment in environmental, sustainability and governance (ESG) resources will also be needed – upskilling teams, for example, new processes and controls to capture the required data points and new systems to access and present this data. All companies will need to make the effort, but smaller companies will really feel it as they will have further to go to create the necessary infrastructure. Expect to hear a lot more about the CSRD in the months ahead as ESG continues to move up the leadership agenda. Damien Carr is a Director in Audit and Assurance at Deloitte Ireland. Lynda Deane, Chair, Chartered Accountants Ireland Western Society Chartered Accountants operating in the today’s business world are no longer “just accountants.” Our role has evolved profoundly. Our focus is no longer purely on reporting, but on advising, guiding and directing. Radical developments in technology, including the advent of artificial intelligence (AI), mean we can now spend less time on repetitive, mundane and input-orientated tasks, and more on valuable strategic work and building trust with stakeholders. AI means colossal amounts of data can be transformed into useful insights at rapid speeds. It is up to us as Chartered Accountants to use these meaningful insights as a foundation to inform better business decisions – offering sound strategic advice that improves productivity, reduces costs and delivers stronger financial results. This is the era of real-time accounting and we, as a profession, must deliver on our potential to provide all stakeholders with better information, faster and more cost-effectively. The outdated perception of accountants as “number-crunchers” is no more. Today, we are valued business advisors and anchors for seamless integration with other areas of business. While some may see risk in this technology-driven shift, and its potential to disrupt career paths in accounting, I would argue that the new “input – process – output” model AI and automation enable will only ever be as good as the data we feed in at the outset, and how well we analyse and interpret the information generated. Chartered Accountants, and our profession’s in-depth financial knowledge and understanding, will play a crucial role at both ends of the process – inputting the right data, and understanding and applying the results to best effect. We may need to rethink how we train the Chartered Accountants of tomorrow, preparing them for the new reality of AI and automation, but the core building blocks and basic understanding of business operations will remain critical. It is an exciting time to be a Chartered Accountant. We, as a profession, have the capacity to drive positive and far-reaching change in the nature of the work we do in 2025 and beyond. Lynda Deane is a Director with Grant Thornton in Galway Maura Ginty, Chair, Chartered Accountants Ireland Northwest Society I think we all need to see a renewed Government focus in 2025 on strengthening Ireland’s indigenous SME and start-up sector as a counterweight to multinationals. From a tax perspective, we have valuable early-stage tax reliefs, but they are complex and often close to unworkable for start-ups without the resources to implement them. The policy objectives are fine; they are targeted – but the rules need to be simpler and less onerous. At the opposite end of the spectrum, for entrepreneurs exiting a business, I would like to see the current limits on capital gains tax reliefs lifted in recognition of the important role entrepreneurs play in Irish society. They take on risk and, in doing so, they create jobs. The regime applying to these individuals should recognise this by being more clearly distinguishable from that applying to purely passive investors. The default limit for the retirement relief exemption has not increased for close to 20 years, for example, leaving one to question whether this relief is being left to “wither on the vine.” For advisors, the good news is that two behemoths of tax complexity – interest relief and funds – are actively under review. There appears to be a desire on all sides to simplify interest relief rules, but this will take time. A review of the tax regime applying to the funds industry in Ireland is complete and recommendations have been presented to Government. The headline policy issue here is the tax regime for Irish investors, with proposals in place to align the applicable tax rates with capital gains tax and remove the controversial eight-year deemed disposal rule for Irish-domiciled funds and life products. This would represent a major change, but some development is needed as it is currently extremely difficult for casual retail investors to comply with the regime. On a more general level, I would welcome more Government consultation with tax practitioners ahead of the proposed introduction of any significant tax policy changes. Such consultations have worked well in relation to the implementation of global tax changes and, more recently, the newly introduced participation exemption for foreign dividends. Looking beyond tax, we are seeing a lot of change and consolidation in the accounting sector, with M&A activity among practices nationwide continuing at pace. I believe there will always be a niche role for independent practices, however – in this market, specialism is key. On the talent front, attracting and retaining staff remains critical for firms across the board – and the much-vaunted culture of long hours is definitely coming to an end. Younger entrants are placing greater value on work-life balance and their time and life outside work, and this is a positive development. There will always be those drawn to long hours and the “daily grind,” but this should never be a baseline expectation for talented and capable individuals who want to succeed in our profession. Maura Ginty is the founder of tax advisory firm Gintax. Profession poised to take centre-stage on critical issues in Australia As we wrap up another year and look to the months ahead, Chartered Accountants are primed to take centre-stage on the “big issues” in business, practice and the wider economy, writes Cliff Wilson, Chair of Chartered Accountants Ireland Australian Society. In 2025, I expect to see greater demand for Chartered Accountants to take the lead, as governments and businesses grapple with economic, regulatory and societal challenges, such as inflation and climate change. In particular, environmental, social and governance (ESG) reporting is becoming incredibly important because it helps businesses be more transparent and accountable. The rules and regulations underpinning ESG are undergoing constant change, however, so it is crucial for Chartered Accountants to keep up. We need to ensure we are up-to-date at all times and learning continuously about new regulations to ensure compliance. Looking beyond sustainability, we are really starting to see just how powerful advanced technologies like artificial intelligence (AI) and machine learning can be in allowing Chartered Accountants to focus more on the “big picture” strategic stuff. Investing in this technology can effectively automate boring tasks and make financial reporting and analysis super-efficient and accurate – but it also means we need to change how we work and think. As AI and automation become ever-more prevalent, we will need strong leaders willing to let go of the “busywork” and make time to allow us to learn the new skills of the future. As businesses face greater complexity and competition, demand for the advisory and consulting services offered by Chartered Accountants is skyrocketing. To paraphrase Warren Buffett, “Accounting is the language of business,” and this is perhaps truer today than ever before. More and more businesses need our expertise in financial planning, risk management and strategic decision-making and – in response – we need to prioritise our analytical and communication skills to stay ahead of the game. The accounting profession is evolving rapidly, and this means continuous learning is essential. We need to know about new technologies, regulations and best practice to maintain efficiency, accuracy and strategic insight at all times. It is an exciting time to be a Chartered Accountant, with plenty of opportunities to make a real impact. Embrace change and invest in continuous learning, and you will thrive in 2025 and beyond. Cliff Wilson is Director of Wilson Select. Joseph Grant, Chair, ACA Professionals 2025 is shaping up to be an important year for the future of the accountancy profession with significant change on the way, shaped by new regulations, advancing technology and the evolving expectations of the workforce. From the CSRD to the increasing prevalence of AI and shifting workforce dynamics, Chartered Accountants in both business and practice will need to navigate fast-emerging trends. One major area of development will undoubtedly be the CSRD. As business leaders, accountants will play a central role in ensuring our employers and clients meet their sustainability reporting obligations. This may prove challenging as we learn to shift our mindset to integrate sustainability metrics with traditional financial reporting. As CSRD requirements take effect, I expect many of us will be more exposed to this work in 2025 as a larger number of organisations prepare to begin mandatory reporting in 2026. This Directive also provides an opportunity for Chartered Accountants to lead the charge in sustainable business as well as demonstrating our versatility as a profession. AI as a technology promises greater efficiency and a sea change in how important data for decision-making is gathered and processed. For Chartered Accountants, AI promises to cut down the time we spend on repetitive routine tasks, freeing us up to concentrate on more valuable complex and strategic work. While this is welcomed by many, my own prediction is that the AI shift will also bring greater focus on intellectual property rights and cybersecurity risks, particularly concerning the datasets used by AI systems. As AI becomes more widely used, I think businesses will need to pay more attention to the security of the data they are feeding into these models, the reliability of the outputs and the need to establish clear and comprehensive internal workplace policies to mitigate risk and misuse. On the workforce front, I believe we will continue to see greater mobility among younger Chartered Accountants willing and eager to move abroad to seek global opportunities. Even as some employers are pushing for a return to an office-first working model, I think younger professionals will also continue to prioritise work-life balance over the need for a prescribed presence in traditional office environments. The majority of employers will support this, but I would also hope to see greater Government investment in the infrastructure needed to facilitate successful remote and hybrid working, both in terms of the digital infrastructure and commuter links that would facilitate the decentralisation of Ireland’s workforce in locations outside our major cities. Joseph Grant is Financial Accountant External Reporting and Compliance, Primark. Rachel McCann, Chair, Chartered Accountants Ireland Cork Society As we approach 2025, Chartered Accountants working in business are at the centre of transformation driven by technological advancements, regulatory developments and evolving business dynamics. Our role is fast evolving beyond traditional bookkeeping and financial reporting towards more strategic functions. In particular, I see four key priority areas for today’s Chartered Accountant. AI and data analytics In 2025, we can expect the widespread adoption of AI-powered tools that can handle routine tasks, such as data entry, reconciliations and even complex financial forecasting. This shift will allow accountants to move away from time-consuming transactional duties and focus on more value-added services, such as strategic advising, decision support and risk management. AI will also assist in fraud detection, using predictive analytics to identify irregularities humans might overlook. This proactive approach will not only streamline internal controls, but also reduce errors, facilitating more accurate financial reporting. Data analytics now gives Chartered Accountants access to real-time data that is easy to interpret. In 2025, we will likely begin to work more closely with data scientists, IT teams and business analysts to leverage machine learning and AI for predictive analytics, customer insights and trend forecasting. Accountants will also play a central role in ensuring data quality and governance, as businesses generate more data than ever before. ESG reporting Chartered Accountants will be expected to ensure the accuracy and transparency of ESG reports, as well as advising on strategies for meeting sustainability goals. This shift reflects the growing demand for businesses to demonstrate responsible practices, which is becoming a critical consideration for investors, consumers and regulators alike. Businesses now need to begin putting the necessary plans in place to ensure they are fully prepared when their time comes to report. Digital tax and e-invoicing Although delayed in several countries, e-invoicing will soon apply across Europe. Now is the time for businesses to prepare by ensuring they are registered on jurisdictional portals, have digital signatures and the right software ready for their business needs. The global shift toward digital tax compliance will require accountants to navigate complex tax rules, including VAT/GST requirements for digital services, transfer pricing and cross-border tax compliance. Leadership skills While much of the focus on change and transformation in our profession continues to centre on technology, we can never forget the critical importance of the “human element.” Technology can, and does, fail and we then need to be able to rely on client relationships to overcome any issues or challenges that may arise as we introduce, and adapt to, new technologies. Being able to pick up the phone to a client will always be a key requirement for Chartered Accountants. Making time to organise a coffee, lunch or social outing with clients will always be at the core of developing solid business relationships and generating opportunities. We, as leaders, need to ensure that the next generation of our profession has the communication skills needed to forge and maintain strong relationships as they look to progress and develop in their own careers. Rachel McCann is a Director with Grant Thornton in Cork. The view from Northern Ireland Northern Ireland’s unique position as a bridge between Britain and the EU opens up exciting pathways for growth in key sectors in the year ahead, writes Gillian Sadlier, Chair of Chartered Accountants Ireland Ulster Society. As Ulster Society members have identified in our surveys, this unique position presents a great deal of opportunity, both for our region and profession, across sectors including clean energy, health sciences, cyber security and data analytics. Through challenging times – from Brexit to the pandemic, and the ups and downs of local politics – Chartered Accountants have been crucial, helping businesses navigate uncertainty and plan for the future. Demand for Chartered Accountants in Northern Ireland is stronger than ever, fuelled not just by our financial know-how, but by the broader strategic insight we offer. Our members hold many critical roles and their advice shapes major decisions, helping businesses grow and, ultimately, boosting the local economy. All of this places great emphasis on the need to continue developing our skills to respond to the needs of the world around us, as well as the need to continue attracting fresh talent to the profession. Today’s Chartered Accountant needs to be adept at communicating, leading teams and understanding complex regulatory issues. Northern Ireland’s access to both the UK and EU markets also opens up niche opportunities in cross-border trade, data compliance and risk management. Chartered Accountants who dive into these areas will not only enhance their careers but will also bring huge value to local businesses and organisations seeking to expand. With skills shortages a real issue, there is also a great opportunity to showcase just how dynamic a career as a Chartered Accountant can be. Young professionals need to see that this is a field filled with possibilities – you can expect to make an impact, influence strategy and work across many industries. For those of us already in the profession, investing in personal development and leadership skills will ensure we can seize the many opportunities ahead and play an even bigger role in Northern Ireland’s future. Chartered Accountants are vital to Northern Ireland’s economic story. By helping businesses thrive, advocating for good governance and guiding strategic decisions, we are building the foundations of a resilient economy. With the right focus on skill-building, recruitment and showcasing the real value of the profession, Chartered Accountants in Northern Ireland can continue to lead the way in 2025 and beyond, making a positive, genuine and tangible difference to the prosperity of our region. Gillian Sadlier is a Senior Manager with Bank of Ireland UK. Shane O’Neill, Chair, Chartered Accountants Ireland Midwest Society The role of the Chartered Accountant has undergone significant transformation in recent years, influenced in no small part by advances in technology – in particular, AI and automation. Traditionally, Chartered Accountants were tasked with manual bookkeeping and journal entry, financial reporting and compliance auditing. With the rise of digital tools and intelligent software, however, many routine functions have now been automated, shifting the focus of our work to more strategic and analytical responsibilities. In the year ahead and beyond, we can expect this trend to deepen as AI and machine learning continue to redefine, not only the accounting landscape but also how people in many professions perform their roles. These technologies are already adept at performing tasks such as data entry, invoice processing and even complex financial forecasting. Automation will allow accountants to focus less on routine data processing and more on interpreting financial data to provide valuable insights for decision-making. In this evolving environment, Chartered Accountants will become advisors, translating complex data into actionable strategies for business. Our focus will be on adding value, rather than solely ensuring regulatory compliance. AI will also enhance our ability to detect and prevent fraud. Machine learning algorithms can analyse patterns and detect anomalies far more efficiently than manual processes. Many accounting firms and finance departments have already begun to integrate such AI-powered tools to safeguard against financial discrepancies and fraud, making the risk management and compliance element of the Chartered Accountant’s role more robust. I expect this trend to continue in 2025 and beyond, requiring Chartered Accountants to develop a solid understanding of how these AI models work so we can audit and validate our results effectively. Data analytics and visualisation tools are also changing how financial data is communicated. The Chartered Accountant of the future will need to be proficient in data analytics so that we can generate deeper insights and present these findings in a way that stakeholders can easily understand. This shift will require a new skillset, pushing our profession to develop a stronger grasp of technology, analytics and digital communication. While AI and automation may streamline many accounting functions, the demand for ethical judgment, strategic insight and adaptability will remain solely the preserve of the human workforce. In 2025 and beyond, the Chartered Accountant will be seen as a strategic partner in business planning, combining technological fluency with core accounting principles to drive growth and innovation. Embracing this shift, while upholding our traditional values of accuracy, integrity and professionalism, will define the Chartered Accountant’s role in the rapidly evolving business world – and continuous learning and adaptability will be crucial. Shane O’Neill is Financial Reporting Manager at H&MV Engineering. UK businesses sound positive note for the economy in 2025 The last 12 months have been eventful, featuring the UK general election in July and the ongoing conflict in Ukraine and the Middle East, writes Greg McAnenly, Chair of Chartered Accountants Ireland London Society. In October, the UK endured a much-anticipated post-election budget – one which sought to solve deficits in public services, but arguably lacked incentives to drive growth and investment in business. That said, there was some relief that capital gains and income tax hikes struck a softer note than had been predicted in some quarters. The ongoing sluggishness in the general economy, coupled with geopolitical uncertainty, compounded the market challenges facing UK businesses in 2024. Striking a more positive note as we look towards 2025, businesses are broadly optimistic that the economy is entering a more stabilised phase and, especially in the so-called “London bubble,” there is a sense that the UK economy may be entering a phase of sustained economic growth. Supported by inflation dropping back to the much-targeted two percent level and interest rates finally falling, the City is looking to overseas and domestic investors to deploy capital and trigger a more buoyant market – so far, the signals are promising. As Chartered Accountants, we are all well-versed in the need to keep up with ever-evolving regulatory requirements. However, as the UK begins to move on from the economic fall-out of Brexit, it will be interesting to see whether the government seeks to carve out paths to the de-regulation promised pre- and post-election in areas such as the finance, housing and energy. Developments in this space will almost certainly require the involvement of Chartered Accountants to ensure change is both measured and appropriate. As with Ireland, the profession in the UK is experiencing challenges attracting new talent and maintaining the important role and relevance of the work we do. As much as this is a potential threat, it also presents opportunity. Right now, the opportunities for our profession to evolve, through upskilling and investment in new technologies such as Artificial Technology (AI), are endless. Already, we are seeing AI automation delivering valuable efficiencies in both professional services and industry – through solutions for preparing statutory accounts, tax computations and smart research tools, for example. Continued investment in this area is not only necessary, but also unlocks opportunities for skilled Chartered Accountants to become more strategically effective and create exciting new roles aligning technology with the valuable skillset of the Chartered Accountant. Showcasing our profession’s dynamic competencies is a valuable tool we can, and should, use to attract younger candidates to a profession with a bright future. Greg McAnenly is a Senior Tax Manager with Related Argent.

The Irish Corporate Governance Code represents a progressive approach to ensuring best practice among companies listed on Euronext Dublin and enhances the reputation of ‘Ireland Inc’ globally. Níall Fitzgerald and Louise Gorman explain why Did you know that Ireland hosts one of the most extensive corporate governance infrastructures in Europe?  In Ireland, there are specific governance codes applicable to listed companies, charities, state bodies, financial services institutions, funds and sports organisations.  This is in addition to other entity-specific requirements that may also apply – charities may have to comply with multiple governance requirements as a condition of receiving state funding, for example.  Yet, until recently, Irish listed companies have relied on the best practice principles of the UK Corporate Governance Code (UK Code).  It is therefore worth considering the extent to which the recent publication of the Irish Corporate Governance Code 2024 (Irish Code) presents a new opportunity to tailor best practice in corporate governance to Irish listed companies. The Irish Code will apply initially to a small number of companies listed on Euronext Dublin, the Irish Stock Exchange, for financial years commencing 1 January 2025. Those dual-listed in both Ireland and the UK have the option to either follow the Irish Code or the UK Code in respect of their Irish listing.  The introduction of the Irish Corporate Governance Code is nonetheless significant.  Four years on from the UK’s departure from the European Union (EU), the Irish Code signals that the time has come for Irish companies to follow a path aligned with EU policy and practice, while remaining loyal to the overarching best practice principles established by the UK. It also reflects welcome proactivity in protecting and enhancing the reputation of ‘Ireland Inc’ on the global stage.  Historically, many corporate governance codes and laws internationally have been introduced in response to corporate failings.  By contrast, the Irish Code has emerged out of a desire to ensure that best practice is suitably tailored to the specific circumstances of Irish listed companies.  This comes at no cost to our competitiveness. We retain our well-established ‘comply or explain’ principles-based approach, while also remaining globally connected via our EU membership. Further, we host a US Public Company Accounting Oversight Board presence relating to both Irish companies listed on US Stock Exchanges and US listed companies operating in Ireland. What does this mean for Irish companies? Irish companies already complying with the UK Code will, for the most part, maintain their existing governance practices. They will need to address some specific Irish Code requirements, however. The extent of any differences here will vary depending on each company’s governance policies and structures.  Some companies may find the adjustment process less challenging, particularly those already preparing for the new UK Code applying from 1 January 2025 (apart from Provision 29, which applies from 1 January 2026).  The UK Code served as the basis for developing the Irish Code. Euronext Dublin has made changes only where necessary to ensure proportionality and relevance.  To enhance the principle-based approach, Euronext Dublin has also taken the decision not to include some of the more prescriptive requirements driven largely by the UK regulatory environment.  Maintaining close alignment makes sense as the UK Code is highly regarded and sets a high standard for corporate governance that is emulated internationally.  Our table illustrates some of the key differences between the Irish and the UK Code. Some of these differences, and what they mean for Irish companies, are further explained below. Internal control and risk management: A significant new requirement in the UK Code is included within Provision 29. This requires boards to provide a “declaration of effectiveness” on internal controls, identifying any ineffective controls as of the balance sheet date. Compliance will require boards to establish an independent framework to monitor and assess their internal control and risk management systems. The Irish Code also requires boards to review and report on the effectiveness of these systems, but it is less detailed, not requiring specific declarations or publication of ineffective controls at the balance sheet date. Audit committees: The UK Code requires audit committees to adhere to the Financial Reporting Council’s (FRC) “Audit Committees and the External Audit: Minimum Standard.” In contrast, the Irish Code outlines the roles and responsibilities of audit committees, which are consistent with Companies Act 2014 (Section 167) requirements, without reference to an additional standard, specifying that their work should be detailed in the annual report. Maintaining the principle-based approach in this area is practical, as best practices for audit committees are evolving in accordance with emerging recommendations on audit tendering oversight and sustainability reporting coming from bodies such as the FRC and Accountancy Europe. Less prescriptive and more proportionate: The Irish Code retains core principles, such as workforce engagement, but leaves it to boards to choose the most appropriate methods for their companies’ needs. This facilitates greater flexibility relative to equivalent parts of the UK Code which specify detailed considerations or criteria. The Irish Code aligns some provisions with those in smaller EU capital markets, enabling a proportionate governance approach. For example, while one of the criteria for assessing non-executive directors’ independence in the UK Code requires a five-year employee cooling-off period to be considered, the Irish Code sets this at three years, balancing market size and available talent. Regulatory oversight and enforcement: Like the UK, the Irish Code relies on the market mechanism. It aims to promote high standards of integrity, transparency and accountability. Investors and stakeholders can evaluate disclosures and make comparisons across companies in assessing corporate governance quality. These assessments then inform decisions and actions taken in the markets, such as the decision to buy or sell shares. The implication of this in the UK experience is that the FRC has no sanctioning authority in instances of weak compliance; sanctioning is left to the market mechanism. The FRC does, however, conduct thematic reviews to guide improvements in corporate reporting and governance. Ireland currently has no equivalent body for corporate governance assessment. However, the Irish Auditing and Accounting Supervisory Authority reviews annual reports for EU Transparency Directive compliance, without a specific corporate governance focus. While sanctions do not apply for weak governance compliance, Euronext Dublin can impose sanctions or suspend listings for violations of the listing rules. The Financial Conduct Authority in the UK has a similar approach.   The Irish Code and the UK Code: key differences Workforce engagement  The Irish Code requires boards to explain workforce engagement methods and their effectiveness, without mandating a specific method as in the UK Code. Additionally, it requires a board review of policies for raising concerns. This requirement aligns with the OECD Corporate Governance Principles 2023.  Threshold for addressing shareholder dissent The threshold for consulting with shareholders on a dissenting vote against a board recommendation is set at 25 percent under the Irish Code (20% in the UK Code). Unlike the UK, there is no requirement to provide a six-month shareholder update on the consultation, but it should be addressed in the next annual report. Non-executive director independence  When considering the independence of a non-executive director (NED), the criteria relating to previous employment by the company is whether they have been an employee of the company within the last three years (compared to five years in the UK Code). Board appointments The Irish Code does not include the UK Code restriction on the number of appointments a non-executive director has in a FTSE 100 or other significant undertaking. The Irish Code requires all commitments to be considered when determining whether the NED has the capacity to fully commit to the board. Company Secretary The Irish Code further elaborates on the role of the Company Secretary in ensuring a good information flow within the board, its committees and between management and non-executive directors – recording accurate minutes, facilitating induction and assisting with professional development of non-executive directors. Board evaluation The Irish Code replaces the UK Code reference to FTSE 350 companies with “companies with a market capitalisation in excess of €750 million” in the requirement to conduct an external board evaluation at least once every three years. Board skills and expertise The Irish Code includes an additional requirement for the nomination committee to use the results of a board evaluation to identify the board’s skills, knowledge and expertise requirements. This should be reflected in board succession plans, professional development plans and steps taken to ensure the board has access to the skills, knowledge and expertise it requires. This requirement is consistent with good governance practices in other EU countries, e.g. the 2020 Belgium Code on Corporate Governance. Diversity and inclusion Whereas the UK Code includes reference to UK equality legislation for diversity characteristics, the Irish Code requires companies to have a diversity and inclusion policy regarding gender and other aspects of diversity of relevance to the company and includes measurable objectives for implementing such a policy. The Irish Code requires this policy to be reviewed annually. Audit Committee To ensure consistency with the Companies Act 2014, the requirement for one member of the Audit Committee to have “recent and relevant financial experience” is changed to “competence in accounting or auditing”. Reference to “financial reporting process” is replaced with “corporate reporting process” to better reflect the audit committee’s role in monitoring financial and non-financial reporting, e.g. sustainability reporting. Reference to the UK specific Financial Reporting Council guidance on “Audit Committees and the External Audit: Minimum Standard” is also removed. Internal controls and risk management systems The Irish Code does not include the UK Code provision for the board to include a declaration of effectiveness of material controls, but the requirement to monitor the company’s internal control and risk management systems and review their effectiveness remains.  Remuneration Under the Irish Code, share awards in long-term incentive plans must vest over at least three years, unlike the UK’s five-year minimum. Malus and clawback provisions should be described generally in annual reports, and executive pensions require thoughtful comparison to workforce pensions, with less prescriptive rules than the UK Code. What next for the Irish Code?  Euronext Dublin is in the process of revising the Listing Rules to give effect to the new Irish Code and is further streamlining the requirements.  An Irish Corporate Governance Panel will be established, with responsibility for reviewing and advising on changes to the Irish Code in the context of the evolving corporate governance landscape in Ireland, the UK and Europe alongside other factors.  What impact the Irish Code will have remains to be seen. It represents a sensible approach to building on the reputation and quality of the UK Code, and while there are some differences between the Irish and UK Code, they are mostly aligned.  We have been careful to note that the Irish Code initially applies only to a small number of companies, so one may be forgiven for questioning its true significance. Nonetheless, key issues on the European regulatory horizon suggest that it may mark the start of a greater departure from the UK’s approach to governance.  The recent transposition of the Corporate Sustainability Reporting Directive into Irish law provides another example of this as the CSRD’s required disclosures on governance introduce an EU influence into governance in Irish companies.  Future revisions to the Irish Code may further reflect this newly established autonomy in governance in Ireland, particularly as we adopt the Corporate Sustainability Due Diligence Directive and other directives the European Commission will inevitably introduce over time.  Currently, best practice principles for Irish private companies are limited to voluntarily following the UK’s Wates Corporate Governance Principles for Large Private Companies. Just as the UK Code has influenced these principles, the Irish Code may provide a basis for further extension to large private entities.  There is also a strong argument that any evolution in corporate governance guidance deserves due consideration, particularly as boards deal with increasing risks and opportunities from environmental, social, economic and technological developments.  As it happens, there are no immediate plans to draft guidance to support the Irish Code, and the FRC’s Corporate Governance Code Guidance should, in the short term, be sufficient to fill the gap.  Experts in the area have long noted that attention tends be paid to corporate governance only when a failure occurs.  Given the level of public scrutiny such failures attract, and the associated reputational costs borne by board members, any Irish listed company director should be asking themselves if they can really afford not to pay attention to the new Irish Corporate Governance Code. Níall Fitzgerald, FCA, is Head of Ethics and Governance at Chartered Accountants Ireland Louise Gorman is Assistant Professor at Trinity Business School

COP29 concluded in late November with uneasy agreement on the controversial Baku Finance Goal pledging $300 billion in climate funding to developing countries, writes Susan Rossney COP29, the global climate summit, concluded in the early hours of 24 November in Baku, Azerbaijan. There were some positive developments, such as the deal reached on Article 6 of the Paris Agreement to finally allow countries to trade carbon credits with each other. Most significantly, though, for this ‘climate COP’, was the final agreement called the Baku Finance Goal. In 2009, at COP15 in Copenhagen, parties agreed a collective goal for developed nations to provide $100 billion annually in climate financing to developing countries. The new goal agreed at COP29 ups the annual financial target to $300 billion, to be funded from public sources, with provision for the shortfall to be made up of funding from private sources. To say opinion was divided on this new goal is an understatement. While some parties are cautiously optimistic that the agreement would at least keep the core principles of the Paris Agreement alive, many more were outraged by how much the new goal falls short of what is actually needed. It is generally agreed that $1 trillion per year by 2030 (rising to $1.3tn per year by 2035) is needed to help developing countries build resilience, prepare for disasters and cut emissions of planet-warming greenhouse gases. While this figure is enormous, it’s worth noting for context that $2.4 trillion was spent on weapons in 2023, and at least $1 trillion was spent in 2022 on subsidies to keep fossil fuel prices artificially low. Also worth noting is that the provision of financial support to developing countries for climate action serves both a moral and economic purpose for wealthier countries. The chaos caused by the climate and biodiversity crises to societies and economies is not limited to developing countries alone. This was demonstrated most recently by the 224 lives lost in Spain as a result of flooding linked to rising temperatures in the Mediterranean Sea. On 28 November, Spain’s government approved a new “paid climate leave” entitlement of up to four days to allow workers take time off if unable to travel to their place of work in the event of official warnings of extreme weather conditions. The Institute for Economics and Peace further predicts that one billion people face being displaced within 30 years due to the climate crisis, with huge impacts for both the developed and developing worlds. COP30 will take place in Belém, Brazil in 2025. Its focus will centre on efforts by each country to reduce national emissions and adapt to the impacts of climate change (the so-called ‘NDCs’ or ‘nationally determined contributions’). It remains to be seen if COP30 will achieve what G20 leaders have said it should – i.e. to be “our last chance to avoid an irreversible rupture in the climate system”. Susan Rossney is Sustainability Advocacy Manager at Chartered Accountants Ireland. Check out Chartered Accountants Ireland’s sustainability centre for signposts to a variety of resources available to businesses. Also, subscribe to the Institute’s fortnightly Technical Round Up and weekly Sustainability/ESG Bulletins, both in the weekly Chartered Accountants Ireland newsletter, and on LinkedIn.

Amendments to FRS 102: are you ready for change? Aimed at improving financial reporting practices, the latest FRS 102 amendments introduce important changes finance teams must begin preparing for today. Emer Fitzpatrick and Cayetano Bautista III delve into the details. FRS 102 is the predominant accounting standard used by small and medium businesses (SMEs) and private family businesses across the island of Ireland. It was introduced in 2013, applying to accounting periods commencing on or after 1 January 2015, with early adoption permitted. The UK Financial Reporting Council (FRC) is the standard setter for FRS 102 and performs periodic reviews of the accounting standard, at least every five years. The aim of these reviews is to take account of changes in global accounting standards – such as changes to the International Accounting Standards Board (IASB) accounting standards, and to respond to specific issues as they arise, such as regulatory decisions and stakeholder feedback. Amendments are then developed and proposed after feedback has been sought from the relevant stakeholders. The first periodic review of FRS 102 was completed in December 2017, coming into effect on 1 January 2019, and the FRC recently completed another periodic review in March 2024. This most recent review has taken several years to complete due to the need for extensive consultations with stakeholders. The effective date of the amendments arising from this review will be applicable for accounting periods on or after 1 January 2026. (Earlier effective dates apply to new disclosures about supplier finance arrangements, starting from 1 January 2025, with early application permitted). Early application is, however, permitted where all amendments are applied simultaneously. So, what are the key amendments arising from this review, and how can you prepare for these changes? FRS 102 review: key amendments Single lease accounting approach for lessees (Section 20) Under the current model, lessees classify leases as either finance or operating, depending on whether the lease transfers substantially all the risks and rewards of ownership from the lessor to the lessee. This approach is similar to the model used under old Irish Generally Accepted Accounting Principles (GAAP) and IAS 17 – “Leases”. The FRS 102 amendments will largely align Section 20 with IFRS 16 – “Leases”, eliminating the distinction between finance and operating leases for lessees. This will require lessees to recognise right-of-use assets (ROU) and lease liabilities on the Statement of Financial Position (SOFP) for all leases, apart from short-term leases and low-value assets. Subsequently, the ROU is depreciated over the lease term on a straight-line basis, while the lease liabilities are amortised using the effective interest method, which results in a frontloading of the lease expense, reflecting the underlying financing nature of leases. Let’s illustrate this with an example. Lease term   3 years  Annual payment payable at the end of the year  €50,000  Discount rate (annual)  5% SOFP – lease commencement (rounded to the nearest €000)   ROU / lease liability   €136,000*   *The initial ROU/lease liability is for illustrative purposes only. These should be calculated using the following formula: Present value (PV) of lease payments not paid at that date and discounted using the appropriate discount rate. [PV of €50,000 × 3 years at 5%] In most cases, the ROU and lease liability will be equal to each other on the inception of the lease. Statement of Comprehensive Income (SOCI) – Year 1   ROU depreciation (operating profit)  €45,333 [€136,000 ÷ 3]  Interest on lease liability (finance cost)  €6,800 [€136,000 × 5%] SOFP – Year -1    ROU   €90,667 [€136,000 – €45,333]  Lease liability  €92,800 [€136,000 – €50,000 + €6,800] The amendments provide guidance on what constitutes a lease, how to determine the lease term, how to account for modifications and remeasurements and other practical expedients. It is important not to underestimate the complexity of this new lease model. Consideration must be given to several factors, such as whether an arrangement meets the definition of a lease and how to calculate an appropriate discount rate for every lease. Five-step revenue recognition model (Section 23) The FRS 102 amendments also introduce a comprehensive five-step model for revenue recognition aligning Section 23 of FRS 102 with IFRS 15 – “Revenue from contracts with customers.” The five steps are as follows: Identify the contract(s) with a customer. Identify the performance obligations in the contract. Determine the transaction price. Allocate the transaction price to the performance obligations in the contract. Recognise revenue when (or as) the entity satisfies a performance obligation. The core principle is to align revenue recognition with the transfer of control of goods or services to customers which may either be over time or at a point in time. This also aligns revenue recognition with the contractual terms in relation to the enforceable rights and obligations of the customer and supplier. The five-step model aims to address the challenges in accounting for bundled goods and services by introducing the concept of allocating the consideration from the customer to the separate and distinct performance obligations, representing the promised goods or services within the contract. The amendments also provide guidance on several topics, such as combining two or more contracts entered into, at or near the same time with the same customers, contract modifications and some practical expedients. It is important to note that the new five-step revenue recognition model could alter the timing of revenue recognition, especially for complex contracts with bundled goods and variable consideration. Other important amendments to note The amendments to FRS 102 also contain several incremental improvements and clarifications including, but not limited to, the following: IAS 39 option removal: Entities not already applying IAS 39 recognition and measurement principles for financial instruments can no longer adopt such policies under Section 11 and 12 of FRS 102. Supplier financing: Section 7 of FRS 102 will now require additional disclosures about supplier finance arrangements and their impact on SOFP and cash flows. Fair Value measurement: A new Section 2A (Fair Value Measurement) replaces the Appendix to Section 2 of FRS 102, incorporating the principles of IFRS 13 – “Fair value measurement.” Going concern disclosures: Section 3 of FRS 102 has new requirements for management to affirm consideration of future information and to disclose significant judgments on going concerns. Business combinations: Section 19 of FRS 102 has been updated to include guidance on the identification of an acquirer in a business combination similar to the principles of IFRS 3 – “Business combinations.” Share based payments (SBP): Section 26 of FRS 102 includes enhanced guidance on accounting for vesting conditions, fair value determination and SBPs with cash alternatives. Uncertain tax treatments: Section 29 of FRS 102 includes guidance for uncertain tax treatments, which aligns with IFRIC 23 – “Uncertainty over Income Tax Treatments” principles. FRS 102 amendments: next steps We have outlined some practical steps you can take to help prepare for these changes. Assess the impact on your financial statements and business metrics As discussed above, the changes to Leases and Revenue may have a significant impact on financial statements (FS). The new lease accounting model may affect your company’s financial metrics or key performance indicators (KPIs) such as EBITDA, net profit and net debt, to name a few. Not only will the changes to KPIs have an impact on the FS but they may also impact your lending arrangements or covenants. For the new revenue model, consideration must be given to how any potential changes to the timing of revenue recognition may impact both reported and forecasted revenue and profits. You will also need to consider how the other amendments listed above will impact the FS and whether you have the necessary in-house expertise on your finance team to carry out the work required to comply with these amendments. Increased disclosure will be required in the notes to the FS, and this may include some new and previously undisclosed information. Understanding these requirements will help guide your accounting processes and the preparation of the FS. Being well-prepared will ensure compliance and transparency in your financial reporting. Consider whether operational changes are required The new lease accounting and revenue recognition models are closely tied to contractual terms and conditions. This will require additional information and financial modelling from contracts. An early assessment of your current accounting processes, systems and controls is essential to identify the necessary operational changes. Other considerations, such as the number of lease agreements and revenue contracts a company may have, will determine the amount of work involved, especially with regard to preparing an amortisation table and the potential need for external valuation expertise to determine an appropriate discount rate for every lease agreement. Determine the best game plan for the transition It is critical to ensure that your finance team is ready for these changes. Engaging your finance team through training courses, workshops and other methods – before and during the transition phase – will be important in ensuring your team fully understands the upcoming changes. Preparing for change: act now The aim of these FRS 102 amendments is to improve financial reporting by aligning FRS 102 more closely with IFRS. Although most of the amendments will not take effect until 2026, early application is allowed if all amendments are adopted simultaneously. Thus, it is critical that companies put a game plan in place today to determine the optimal timing, scope and method for adopting the FRS 102 amendments. The time to act is now. Emer Fitzpatrick is a Senior Manager in PwC Corporate Reporting Services and a member of the Financial Reporting Technical Committee of Chartered Accountants Ireland. Cayetano Bautista III is a Senior Manager in PwC Capital Markets and Accounting Advisory Services.