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.

Ongoing turmoil in Europe’s largest economy will be exacerbated by Donald Trump’s pledged import tariffs, highlighting the need for EU countries to pull together to withstand transatlantic  trade disruption, writes Judy Dempsey Pity Germany’s next government. Olaf Scholz’s successor will have no time to lose when the federal elections end on 25 February 2025, bringing Scholz’s bickering coalition to a close.  Now, the economy is the priority. Germany’s outgoing government believed the old industrial model just needed a bit of tinkering to effectively counter China’s ever-increasing economic presence – but those days are over.  Massive job cuts announced by Volkswagen and ThyssenKrupp (the traditional giants of the car and steel industry, respectively) demonstrate how this government and its predecessor, led by Angela Merkel, failed to prepare for the inevitable impact of de-industrialisation. The replacement of the combustible engine with electric alternatives – which China has rapidly embraced – has been a shock for German industry, which had mistakenly earmarked China as a reliable export market.  No more.  Germany’s high energy costs and fierce competition from Beijing have combined to catalyse the failure of Germany’s old industrial model – so Berlin’s next government must hit the ground running.  This means making the transition from an old industrial base to more modern sectors driven by digital culture.  It means grappling with a demographic crisis that will only cost more unless the government introduces a robust immigration policy to address the huge labour shortages affecting most sectors.  None of this will happen unless Germany’s next leader loosens the ‘debt brake’ constitutionally limiting government spending.  Germany is in dire need of public financing if it is to invest in defence, climate adaptation, security, housing, transport health and education.   The debt brake (and overbearing bureaucracy) has starved investment. The government already has a spending gap of €64 billion for 2025. If, between 2025 and 2030, defence spending targets were to rise from two to three percent of GDP, it would cost another €300 billion.  This German malaise has serious consequences for Europe.  Last year, Germany had the highest level of intra-EU trade, contributing to 21 percent of the European Union’s exports of goods to other countries. What happens in the EU’s largest economy impacts the entire bloc. To make matters worse for Germany’s next Chancellor – and for the EU – is US President-elect Donald Trump’s stated intention to impose a 10 percent tariff on goods imported from Europe and 60 percent on goods from China.  Germany’s export-driven car industry, one of Trump’s targets, is particularly vulnerable and speeding up the manufacturing of electric-driven vehicles would only solve part of the problem. To escape tariffs, it is reasonable to expect the car industry to move manufacturing to the US. This is exactly what Trump wants.  However, back in Germany, the dwindling market in China for German cars could lead to further job losses.  Trump, too, will pile the pressure on Berlin and NATO allies to spend more on defence. It won’t be easy. Not only because of the costs involved but also because Germany’s far-right and far-left parties are opposed to NATO, opposed to supporting Ukraine and generally pro-Russia. All in all, Germany’s ability to deal with its finances, defence and investment issues will be complicated by the Trump administration.  Ultimately, EU countries need to pull together – even integrate – to withstand the pressures on the transatlantic relationship. Judy Dempsey is Nonresident Senior Fellow at Carnegie Europe *Disclaimer: The views expressed in this column published in the December 2024/January 2025 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.

Smaller employers completing gender pay gap reports for the first time in 2025 have a wealth of information to draw on but much work ahead, write Aoife Newton and Andrew Egan A lot can be learned from the first three years of gender pay gap reporting in Ireland, which means those employers new to this reporting in 2025 have a wealth of valuable data to learn from.  Many large employers are already producing in-depth and illustrative annual gender pay gap reports. Although primarily focused on statutory reporting requirements, they also reflect best practice approaches to tackling gender pay gaps and outline clear, insightful ways to explain these gaps.  For employers preparing to report for the first time, these reports are worth reading, if only to give you a sense of the approach others have already taken. As much as you can learn from this, however, you should not underestimate the volume of HR, payroll and other data required for gender pay gap reporting, the complexity involved in merging this data, the calculations required and the scrutiny you can expect to face when communicating your findings to stakeholders internally and externally.  Gender pay gap results published in 2025 will be based on data collected over 12 months, typically from July 2024 to June 2025, though the exact dates will depend on each employer’s chosen snapshot date.  This means employers not already focusing on gender representation across their organisation may find themselves having to explain sizable gender pay gaps. With Irish employers employing as little as 50 people in scope for reporting next year, we expect to see a lot more focus on this area from the media, employees and other stakeholders.  Smaller employers are subject to the same legislative requirements as their larger counterparts; there are no exemptions for employers with limited resources. This means they will be required to produce a report reflecting accurate results aligned with 11 statistical gender pay gap metrics along with a narrative detailing the reasons for existing gaps and measures (both existing and planned) to reduce or eliminate these gaps.  New 2024 regulations – new results? The Employment Equality Act 1998 (section 20A) (Gender Pay Gap Information) (Amendment) Regulations 2024 were introduced last May and it will be interesting to see what impact they have on this year’s gender pay gap reporting results. Under the 2024 Regulations, social welfare payments relating to certain periods of protective leave can now be included in gender pay gap calculations. This is a welcome development as it may help reflect parity of payment in line with notional hours worked.  Prior to this, the regulations have only included ‘top-up’ payment made by employers as relevant pay for gender pay calculations, providing that social welfare payments should be excluded (notwithstanding that full hours have been included).  The impact of this approach has been to reflect a lower hourly rate of pay for employees in receipt of certain welfare payments.  For 2024 reporting and beyond, employers will need to include both maternity leave benefit along with a maternity ‘top-up’ payment (i.e. 100% pay) matched with 100 percent hours.  This should reflect a notional increase in pay for women, thus helping to ‘reduce’ an employer’s gender pay gap compared to last year’s reporting. The 2024 Regulations also adjust the treatment of share options and interests in shares. These are now considered benefit-in-kind rather than forming part of bonus payments.   This could have a significant impact on the gender pay results of in-scope employers as benefit-in-kind is not included in either overall gender pay calculations or separate bonus calculations. Previously, share options and interests in shares were included in both.   The issue of actual shares (to be valued on the date of issue) continue to be part of the bonus calculation. So far in 2024, we are seeing steady results in completed reports compared to reports in the two years prior.  Typically, any significant variations in results can be explained by reference to changes in personnel at a senior level or due to business restructures. Both will continue to impact annual reporting.  Comparison is key An important aspect of reporting for many employers is how favourably, or otherwise, they compare with their peers operating in the same sector or industry. For example, if an employer operates in a sector that is traditionally male dominated (e.g. engineering), this will clearly influence their gender pay gap results.  In certain sectors, such as professional services, where employers are recruiting in the same talent pool as their competitors, how their organisation compares to their peers really matters.  Ideally, employers will want to see results that are either “similar to” or “more favourable than” their competitors.  If their results are not, boards and management should query why they are out of line with competitors with a similar resourcing structure recruiting from the same talent pool. In particular, it is worth examining whether there are discriminatory practices behind any results revealing a wide gender pay gap as this could be affecting female representation at the higher levels of the organisation – or perhaps the organisation’s pay and bonus structure is weighted in favour of men?  Ultimately, gender pay gap results serve to root out any embedded issues that may be impeding more equitable pay across the board. New developments in 2025 The biggest change in 2025 will be the extension of the gender pay gap reporting obligation to employers with just 50 employees. In addition to this development, we expect to see some changes to how the gender pay gap reporting process is carried out.  As it stands, employers must include their gender pay gap data and statement of information on their website – or have it available for public inspection.  We understand the Government has issued a tender for the development of an online gender pay gap portal, with development due to start in the coming weeks and testing earmarked for the new year.  It is expected that the portal will have similar functionality to an online gender pay gap portal already in operation in the UK.  If this is the case, the portal will allow employers and other interested parties to compare and contrast results with ease, rather than having to rely on the current, more laborious, manual process.  This new system of reporting is also expected to result in the reporting deadline being brought forward to the end of November 2025.  Employers – both those already reporting and new to the regime – will therefore have a five-month window in which to report, slightly shorter than the current six-month timeframe.  All employers in scope for reporting next year must thus be vigilant and ensure they are up to date at all times with the portal requirements and potential new deadline.  The EU Pay Transparency Directive Looking further ahead, as the EU Pay Transparency Directive (the Directive) is due to be transposed by June 2026, we expect to see many more changes to the reporting regime in the coming years.  The implementation of the new rules under the Directive will not only change the amount of data required but will also align gender pay gap reporting more closely with the employee engagement agenda.   Further, gender pay gap reporting under this Directive will not simply be about producing an annual report of results and narrative; it could also open up data results to scrutiny from trade unions and other employee representatives.  Where there are gaps of more than five percent in any category of worker (these categories are yet to be defined), which cannot be objectively justified and cannot be rectified within a six-month period, the employer may have to engage in a joint pay assessment.  Such joint pay assessments are expected to involve trade unions or other employee representatives.  Employers and all relevant stakeholders should, therefore, be more concerned about how the Directive will shine a light on their organisation’s gender pay gaps, bringing current reporting closer to the principle of equal pay and overall pay transparency.   Acknowledge the gaps Given the additional layer of data scrutiny under the EU Pay Transparency Directive, we are encouraging all employers with gender pay gaps in favour of male employees to commit to deeper analysis.  By better understanding the causes of such gaps at every level of their business, they will find these discrepancies easier to explain (based on objective criteria), and also potentially easier to rectify.  And while not all gaps may be fixable in the short-term, a deep analysis can give employers a good starting point to devise a longer-term solution, as well as greater scope to explain these gaps to legislators with reference to objective criteria. Ultimately, employers who are not focused on gender parity, closing gaps or preparing for the impending new regime, may be exposed to time-consuming and potentially contentious joint pay assessments.  Aoife Newton is Head of Employment and Immigration Law, KPMG Law LLP  Andrew Egan is a Director with KPMG, leading the firm’s tax data and analytics service offering

Maria Johnson, Head of Finance for Capital Investments at Iarnród Éireann, talks to Liz Riley about her journey to becoming a Chartered Accountant, the value of balance, and the lessons learned from a diverse and rewarding career Starting out, my journey to accounting was somewhat convoluted.  First, a late change to my CAO form brought me to the University of Limerick where I did a degree in Business Studies and French at the University of Limerick, ultimately choosing to major in Economics and Finance and minor in French.  I undertook the Professional Diploma in Accounting at Dublin City University (DCU) and I am now a Fellow of Chartered Accountants Ireland and Head of Finance for Capital Investments at Iarnród Éireann.  I am also lucky enough to be a mother, a stepmother, a daughter, a wife, a sister and a friend.  Capable business advisor I participated in the “milk round” while studying at DCU and decided that training in audit with BDO should be my next step.  The firm proved the ideal choice to commence my career as a Chartered Accountant.  As the audit department was not split into sector-specific teams, I was exposed to numerous sectors, including pharmaceuticals, financial services, professional services and manufacturing, during my training contract.  I also completed two client-based secondments, which gave me valuable real-world experience early in my career.  The BDO philosophy was to ensure the firm’s graduates would become capable business advisors as well as confident accountants through consistent exposure to partners and senior managers, genuine dealings with clients, attendance at relevant meetings and opportunities to present findings and solutions.  This philosophy has benefited me throughout my career, enabling me to work across sectors undaunted and ensuring that I can have valuable conversations with clients and colleagues as required without reservation.  I learned not to be pigeonholed either through education or early career choices. Up-and-coming accountants should aim for a degree and graduate programme that is established and will give them maximum exposure to sectors and professions in their chosen field.  Trading in facts I completed my graduate programme in October 2008, just as the Celtic Tiger was waning and the recession approached.  I was asked to join the Corporate Advisory and Recovery Team at BDO. I worked on this team until June 2014, moving from manager to senior manager during this tenure.  It was an unimaginably busy but rewarding time. All insolvency processes involve an investigation and an evaluation of how the company ultimately failed. These investigations involve forensic reviews of the books and records of the company and meetings and interviews with the officers of the company.  I learned to always remain resolutely professional, treating everyone I meet respectfully and equally – never make assumptions, trade only in facts and always back up all conclusions with evidence. Managing “the juggle” In July 2014, I moved to London with Mazars to work on an engagement for the Financial Conduct Authority. From there, I came back to the Dublin office to work in the financial consulting and decision-making support team. Our team specialised in financial modelling, data analysis and capital business cases. I became a Director on this team in September 2019.  During my time at Mazars, I became a proud dog owner, got married and became both a stepmother and a mother. We also moved from the highly convenient Harold’s Cross to a more family-friendly Portmarnock.  So, I became very well acquainted with “the juggle”.  When I returned from maternity leave, I received some timely advice suggesting I should become very aware that my time was no longer ‘elastic’, meaning I needed to set strict boundaries and stick to them.  This advice has always stuck with me and helps me to set my priorities for the day or week and allocate focus time to achieve those priorities. While it is always good to be flexible, this can no longer be a constant when crèche closing times are set in stone.  Making a different to Ireland’s future In March 2020, I joined Iarnród Éireann as Head of Finance for the newly formed Capital Investment Division. Capital Investments is tasked with building the “railway of the future”.  The Capital Investments team is currently delivering the DART+ Programme, the Cork Area Commuter Rail Programme, the reopening of the Foynes Line in County Limerick and many more projects across the island of Ireland.  I always loved practice. My move was not planned. It was simply that a role I was truly interested in pursuing crossed my path and I couldn’t resist exploring it further.  I have seen many colleagues and friends take roles specifically based on monetary rewards. While this is, of course, important, it rarely results in long-term career success.  I am enjoying working on a multidisciplinary team that is making a real and enduring difference to the Ireland of the future. This role allows me to leverage all the lessons learned in my career to make a real contribution to a busy senior management team. Don’t rush and take time to learn from and enjoy the many opportunities that come your way. I have held many different roles within the accountancy profession.  The work I have undertaken and the professionals I have had the privilege to work with along the way have shaped how I interact with colleagues, approach the work I do and represent my team at an organisational level today.  I’ve learned several things over my career that has influenced my work at Iarnród Éireann: Where possible, always work for companies that have a culture and strategy you are comfortable with.  Real flexibility and respect for work-life balance are lived experiences rather than buzzwords in graduate brochures and company websites.  Organisation is key. I have a great team who are highly committed to their work. I am grateful to them for all that they do, but I also respect that they all have competing priorities. Everyone has competing priorities in life irrespective of their gender, age or stage of life. We try to identify additional priorities and ad hoc tasks well in advance and plan for them around business-as-usual responsibilities to ensure everything is done in a timely and professional manner Balance in teams is essential. I have been a manager in one guise or another since I was 25. I have always happily gotten to know each of my teams. Impromptu coffees and lunches and, most of all, genuine interest are much more valuable than expensive annual outings, etc. Respect, organisation, a shared goal and camaraderie must be a constant in any successful team. Striving for balance Life is a balancing act. I have always worked for organisations that respect diversity and inclusion. I have had colleagues from all backgrounds and across many nationalities. I don’t believe being female has strongly influenced my career and I have been awarded opportunities on merit where deserved.  Where the juxtaposition of gender roles does come into play is in the mid-career juggle between career and family. Society’s expectations are enormous and growing, and the pressure to be the best at everything is real.  I am lucky to have a husband and life partner who also holds a demanding role and who is committed to working with me to do our “best” with life’s challenges and professional obligations in a given week – not “be the best”, but do our best.  I once heard at an International Women’s Day event in London that in any relationship there is an ebb and flow as to whose “time” it is. This is how we run our household every week. It is not always any one person’s “time”, but rather everyone gets their “time” when they need it.  In reflecting on my journey, I recognise that every step – whether carefully planned or serendipitous – has contributed to the professional and personal life I lead today.  To those beginning their own journeys, I would say this: remain open to change, stay true to your values and strive to balance ambition with the things that truly matter in life. The path may be winding, but it’s the experiences and people along the way that make it rewarding.

Ireland’s high beta economy makes us the EU member state most vulnerable to incoming US President Donald Trump’s planned import tariffs, writes Cormac Lucey   T he essential goal of financial management is for a firm to maximise its valuation while minimising risk as measured by volatility in that valuation. The measure of risk used by the Capital Asset Pricing Model (CAPM) is beta. This measures the anticipated rise or fall of an individual stock price in proportion to the movements of the stock market.  A stock with a high beta is expected to undergo large share price moves relative to market moves.  If one were to view the economy of the Republic of Ireland as the equivalent of a stock, one might describe it as a high-beta economy.  Right now, it is exposed to several factors that significantly increase its riskiness relative to its economic neighbours.  Donald Trump and his declared policy of getting US multinationals to repatriate jobs back to the US represents the single biggest economic danger currently facing the Republic.  This is because Ireland’s success in attracting such jobs has laid the foundations for its current economic success.  It has long been understood that the multinational corporation (MNC) sector pays a disproportionate share of corporation tax in Ireland and a new report from the Revenue Commissioners confirms this.  According to Corporation Tax: 2023 Payments and 2022 Returns, the foreign MNC sector paid 87 percent of all corporation tax in Ireland in 2022.  According to an IDA Ireland report published in the same year, a total of 301,475 people were working for foreign multinationals in the country at that time.  According to the Central Statistics Office, meanwhile, of the 2,121,300 people working across the entire economy in 2022 – just 14.2 percent were employed by the MNC sector. Yet, thanks to the highly progressive nature of our income tax system and the much higher wages paid by our MNC sector, this cohort paid 54.6 percent of total income tax.  The cherry on the cake is that, according to Revenue, the MNC sector also accounted for more than half of all VAT payments (53.8 percent). A Danish employers’ study based on a model devised by the Oxford Economics business group stated that Ireland would be the EU member state hardest hit by a full imposition of Trump tariffs, with the potential loss of 30,000 jobs and GDP in 2027 at four percent below what it would otherwise be. This would represent a huge hit to the economy and to the public finances.  The new government’s honeymoon might not last very long. It’s also hard to imagine that Ireland can escape the attention of the incoming Trump administration when it was the focus of so much pre-election scrutiny.  While campaigning, Trump promised blanket levies of 20 percent on all US imports, as well as tariffs of 60 percent on those from China, suggesting his second-term policies could be even more disruptive to global trade than those of his first administration. The incoming Trump administration knows for sure that it will have two years, at least, while it enjoys a congressional majority. Any politically partisan battles it plans will be best fought (and won) in that period.  The Trump factor will add enormously to uncertainty in Irish economic policy in 2025. This level of uncertainty was already high with slowing economic growth in the UK, France, Germany and China, to name some large economies.  When things are improving, you want greater exposure to beta – but not when they are disimproving. When that happens, you want to fasten your seatbelt! *Disclaimer: The views expressed in this column published in the December 2024/January 2025 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.

For Jaimie Dower, having a supportive work environment has played a critical role in helping her to navigate her gender transition positively and proactively When Jaimie Dower made the decision to transition in May 2022, she knew how important it would be to take a proactive approach to communicating her experience, not just in her personal life but also at work to her colleagues and clients at EY Ireland. For Dower, who is an Executive Director in EY’s Audit Quality Programme, her transition marked a watershed moment in her life. She was, she says, finally ready to “stand up in front of the world and say, ‘this is me’.”   “This is something that has been with me my whole life and something I had up until that point struggled with and hid,” Dower explains.  “There was always a disconnect – the person I knew I was inside and the person I was on the outside were not the same.  “It impacted my life in so many ways because there was always this noise in my head – this static – and the way I dealt with it for many years was to mentally compartmentalise and throw myself into things and say to that noise, ‘go away; I’ll deal with you another time.’” For Dower, who lives in Waterford and works at EY’s southeastern hub in the city centre, it was the onset of the COVID-19 pandemic in early 2020 that proved the catalyst for her transition. Working long hours at home and surrounded by the uncertainty that had engulfed the world as the pandemic took hold, she found she was no longer able to rely on life-long coping strategies. “I think this will resonate with a lot of people for their own reasons, but that first COVID lockdown in March 2020 really brought things to a head for me,” she says. “Out of everyone in our family, I was the one working alone from home the most. I had a lot of time to myself and, suddenly, I couldn’t manage those boxes I’d compartmentalised everything into anymore.  “Looking at what was happening in the world around me at that time, there was also this really strong sense of, ‘life’s too short.’  “It wasn’t just that I didn’t want to hide who I was anymore; I wanted to celebrate it. I wanted to stand up in front of the world and say, ‘this is who I am.’ That really came home to me during COVID.” First steps and early conversations Dower’s first step was to seek professional help. Working with a therapist helped her to ‘clarify’ her thoughts and begin to plan the practicalities of managing her transition.  “Talking to someone at that stage was very important – to have that help and support in coming out to myself, really, and the sheer relief of being able to say it out loud. It was powerful,” she says. By mid-2023, having begun hormone treatment, she was ready to start thinking about how to communicate her transition at work. “The hormone treatment changed my life. I can only describe it as coming into full focus for the first time. The dissonance I had felt all my life faded away. Now, I had to think about how to start telling people about my transition – to put a plan in place I was comfortable with.”  Initially, Dower decided to get involved in Unity, EY’s global LGBTQ+ network. “I took things slowly at first, getting involved in things like helping to organise Pride events. I got to know colleagues in the network and had one or two small conversations – really just to begin to gather my own thoughts on how to approach this.” By late 2023, Dower was ready to take more formal steps, and she reached out to EY’s HR team for support. “Their support was incredible. I was able to work directly with a colleague on the HR team I knew I could trust to work out a plan. That trust was immense for me.  “We talked about when I would start speaking to people, who I needed to speak to and when, and about what I wanted to say.” Intentional communication Dower began communicating with her colleagues in mid-February 2024 in advance of presenting at work as her authentic self. “There was a lot of anxiety for me initially around those conversations. Having worked at EY for 30 years, I did feel a lot of pressure because I have long-standing relationships with colleagues within the firm and clients externally and they trust me.  “I had faith that there would be a positive response, but in the back of your mind, there is always the worry that someone might not react well. “I will never forget that first call we set up for 2pm on a Friday afternoon with all the Assurance Partners across EY in Ireland – that was our starting point. “I work with EY people all around the country, but primarily in our Dublin office, and I needed to communicate to everyone.  “So, once I had that call with our Assurance Partners, I set up another group call with everyone on my team and then I sat down face to face with everyone in our Waterford office.” Although intense and, at times, overwhelming, the process also proved to be “empowering” for Dower who welcomed the positive feedback and support offered by colleagues.   “It was the support that came afterwards that really meant so much to me – people reaching out to say, ‘I’m delighted you were able to come to me and tell me this. I am with you – I support you.’  “Just knowing I could come to work as myself and it would be okay was incredible, because not everyone has that experience. Not everyone has that support.” While not easy, the process held great value for Dower, who felt empowered by being able to work proactively with her colleagues at EY to communicate her transition. “Every one of those conversations was difficult, no matter how many times I did it. Effectively, it was just me having to strip away all my defences to tell my story in different ways to different people depending on the nature of our working relationship and how well we knew each other.” “In some ways, it is a never-ending journey, but all I am fundamentally saying is, ‘I am still me, but I am the authentic me – a better version of me’.” Meaningful support and guidance In supporting employees at work as they transition, Dower sees enormous value in collaborative diversity, equity and inclusion initiatives, such as EY’s Unity network, which can help to foster a sense of community and act as a crucial conduit for support and communication. “Through my involvement with Unity, I had the privilege of being able to play a role in revising EY’s Transgender Identity, Expression and Transition Guidelines and I was also able to take part in a Transgender 101 Webcast for staff across the organisation.” As Dower sees it, such initiatives are vital in helping to foster a supportive environment for transgender employees and providing guidance and resources for the wider workforce. “From the employer’s perspective, education is so important. I’m not in a position myself to go around every day educating every person I meet. That’s where things like guidelines and webcasts can have real value. Even just a little bit of education can go a long way.” In particular, Dower sees value in establishing clear guidelines that are equally applicable to all and give everyone a simple and transparent baseline to work from. “I’ve had a sense sometimes that some colleagues may be a little nervous. It’s not that they are not supportive, it’s maybe that they are afraid that they might say the wrong thing or use the wrong terminology, and inadvertently cause offense or upset – and that is the last thing I want,” she says. EY’s Transgender Identity, Expression and Transition Guidelines include sections on gender identity and expression and the correct or inaccurate use of terms relating to gender expression, including pronouns. Guidance is also offered to managers on how to support transitioning employees and to individual employees who are transitioning. “I am very fortunate that EY as a firm, as an employer, has been so willing to work with and support me. When I reached out, the response wasn’t, ‘this is what we need from you,’ it was, ‘what do you need from us?’  “Now, I really want to communicate how important this is to the wider world, because I feel a responsibility to others who are transitioning and may not have the same support I have at work,” Dower says. “Because I have been with EY for 30 years, I have the privilege of a longstanding presence in the organisation and all the trust that comes with relationships built over that time. “Right from the outset I’ve thought, ‘if I can get this right, it might make it easier for someone who is younger and newer in the door who is going through the same thing.’  “Representation matters; visibility matters. Ultimately, I want to do what I can to help make this process easier for others in the future.” Interview by Elaine O’Regan Supporting employees transitioning at work For any person undergoing gender transition, the support of their employer, managers and colleagues will be crucial, and open, honest communication will play an important role in building trust and supporting a positive experience.  “At EY, we are committed to supporting individuals as they go through gender transition and working closely with them to provide personalised support, aid in establishing an action plan and setting expectations,” says Derarca Dennis, EY Ireland’s Assurance Partner and Sustainability Services Lead. “We value diversity and inclusion and the creation of a safe workplace in which everyone has the best opportunity to reach their full potential.” Based on EY Ireland’s own Transgender Identity, Expression and Transition Guidelines, Dennis shares seven key ‘best practice’ focus areas for all employers and managers seeking to support their own employees undergoing gender transition: Develop a transition plan When an individual approaches you with their intention to transition, it is imperative that you are supportive, open-minded and honest. Be prepared to discuss their aims and expectations, and what they intend your role to be in the transition. Make sure to consider stakeholders, colleagues, policies and procedures existing in the workplace. Ask your HR team for guidance and support as needed. Prioritise effective communication Clear, open and honest communication from managers, employees and the transitioning individual is essential. Communication will be different in all transitioning plans and dialogue can help alleviate any potential difficulties or issues. Hosting information and awareness sessions for team members and other stakeholders should be considered when developing this plan. Other fundamental communication areas to consider include what the transitioning individual is comfortable and willing to share.  Practise sensitivity and respect Be prepared to treat any employee who is transitioning with respect and an open-minded attitude. Be ready to ask questions, listen and understand their needs and concerns. All employees deserve to be treated with respect and sensitivity when related to their personal lives.  Use pronouns correctly Using the correct pronouns (he/she/they/ze etc) is extremely important. Simply ask the individual which pronoun they would like people to use and then ensure that everyone knows this. It may seem like a small thing, but it is incredibly important to get right as it demonstrates validation of the individual’s authentic self, which will go a long way towards helping them know they are fully accepted in their expression of their gender identity. Educate and raise awareness While everyone is expected to behave in accordance with policies, there should also be an opportunity for education and questions to be asked related to the transition process. It may be useful to host information sessions and forums to address concerns and educate employees who work in the team.  Guide on client conversations Should the individual be client-facing, they should be offered support (if required) in facilitating a conversation with any clients they work with. It is important to reinforce that their technical abilities will not have changed as a result of their expression of their gender identity and clients should be made to understand that all team members working with them must be treated with the same support and respect.  Respect confidentiality and privacy You should always maintain an appropriate level of confidentiality and privacy in relation to employee matters. Information should only be disclosed to those who need to know (such as HR, for example), those involved in the process, or those who have the consent of the transitioning employee. 

After a frenetic three-week campaign, General Election 2024 has essentially left us where we began – with a likely Government led by Fianna Fáil and Fine Gael albeit this time without the Greens.  The precise makeup of the final coalition is as yet unclear. However, given that the outgoing coalition’s collective seat take will likely not leave them far off the 88 seats needed to command a Dáil majority, it is safe to say that whoever gets the nod to make up the numbers won’t have the same bargaining power to influence policy as some previous smaller coalition partners may have had.  Against this backdrop, it’s safe to assume that the next Programme for Government will largely, if not entirely, be dictated by the policy priorities set out by Fianna Fáil and Fine Gael in their general election manifestos. So, what might this mean for small businesses?  Addressing the cost of doing business  In their respective pre-election pledges, both parties were keen to highlight their awareness of the rising costs of doing business. In Fianna Fáil’s case, they pledged to address this by establishing a new “Cost of Business Advisory Forum” to conduct a review of all current business costs and taxes.  According to the party’s manifesto, “this forum will be consulted before introducing new legislation or policies that affect small businesses.”  Likewise, in its manifesto, Fine Gael took a similar tack by reasserting its commitment to apply what it calls the “SME test” to any new legislation coming down the track – a test that would essentially require all departments to first assess the impact on small businesses of any new measures being proposed prior to enactment.  So, with both parties essentially singing from the same hymn sheet on the issue, it is likely that we will see the announcement of some sort of new initiative designed to limit the amount of new regulations that could further add to the cost burdens of small businesses.   Employers’ PRSI   Again on the issue of reducing business costs, both parties also made specific commitments to reduce the Employers’ PRSI burden where lower earning workers are employed.  While Fine Gael favoured a temporary, three-year PRSI rebate based on the number of lower-earning workers on a company’s payroll, Fianna Fáil pledged an outright reduction to the lower rate of employers PRSI by 1.5 percent.  The logic behind the latter proposal (we know this because the Institute’s pre-election manifesto originally proposed it) is to mitigate the concurrent 1.5 percent uptick in payroll costs due to hit many employers in late 2025 through the introduction of pensions auto-enrolment.  So again, with both parties essentially aligned here, it’s fair to say that a reduction or rebate of the lower rate of Employers’ PRSI in some format will also likely feature in the next Programme for Government.   VAT on hospitality  The issue of VAT on hospitality was a notably contentious issue in the run up to Budget 2024 with the Government ultimately refusing to reinstate the reduced nine percent rate despite extensive lobbying from the sector.  However, the way in which each party subsequently approached the issue in their election manifestos is perhaps telling of a policy fissure between the two.  Fine Gael clearly favours a reduction, albeit to a midway rate of 11 percent while Fianna Fáil is notably silent on the issue in its manifesto, instead placing its focus on maintaining VAT on gas and electricity bills at nine percent for the next five years.  How this difference in approach will ultimately play out in the final Programme for Government is as yet unclear. However, Fine Gael’s pledge to implement a reduction will no doubt have created an expectation from the hospitality sector that some sort of action will be taken on reducing the rate.  Energy supports  High energy costs continue to be an issue for many small businesses and the manifestos of both Fianna Fáil and Fine Gael have again sought to tackle this through further one-off grant schemes.  In Fianna Fáil’s case, the party has pledged to introduce a successor to the Increased Cost of Business/Power Up grant schemes to help hospitality and retail businesses deal with higher energy bills.  Likewise, Fine Gael has promised a new energy cost grant scheme, “to help businesses lower their energy costs, enabling them to operate more sustainably.” Given that the two parties appear to be broadly aligned on the issue, a new round of temporary energy support grants seems likely.  However, what is less clear is how the announcement of these relatively piecemeal measures will be received by businesses, particularly given the slow uptake of previous such schemes over the past two years. Stephen Lowry is Head of Public Policy at Chartered Accountants Ireland

With the festive season upon us, demand for the services offered by CA Support is on the rise. This Christmas, we are appealing to our members to embrace the idea of community and help those in need As the holiday season approaches, many of us will be looking forward to the warmth, joy and wonder that comes with it.  For some, however, Christmas and New Year celebrations can be a time of incredible stress, worry and insecurity.  For individuals facing financial difficulties, in particular, the season can be a painful reminder of what is lacking and left unfulfilled.  What is CA Support?  CA Support is the charitable foundation of Chartered Accountants Ireland. Offering emergency financial assistance to members, students and families in need, it acts as a safety net for those in our community who find themselves in difficult circumstances.  CA Support helps cover immediate and urgent needs like food, shelter, bills, medical expenses and other essentials such as back-to-school costs.  At this time of year, we also strive to protect the magic of Christmas for families by contributing to the cost of toys and Christmas dinners.  CA Support assists over 100 individuals and families at any given time, and demand is ever-growing.  In 2024 alone, there was an 18 percent increase in cases compared to 2023.  Like most registered charities, CA Support relies on the generosity and goodwill of the Chartered Accounting community to ensure that no one in the profession struggles alone.  Why help?  With state support only going so far, donations offer a lifeline to members to get them through often the toughest and most tumultuous times in their lives. These donations can help families facing evictions, single parents struggling to manage household costs and childcare, and elderly members unable to cover medical expenses.  They can help everyday members grappling with a loss of earnings due to illness, caring for dependants or struggling with mental health issues.  By contributing to CA Support, you help ensure that everyone in our community – no matter their circumstances – is provided with safety and security.  Please consider donating to CA Support this giving season. Together, we can make next year brighter for those who need it most.  Donate today to CA Support

Richelle Manning, Investor Relations and Credit Rating Manager at ESB, tells us about her career path, passion for decarbonisation and climate action, and plans for the future. Richelle Manning, FCA, is Investor Relations and Credit Rating Manager at ESB. Manning joined the semi-state energy utility in 2014 having trained in KPMG’s Restructuring and Forensics Department and remaining with the firm for a further three years. She grew up in Kells, Co. Meath, and has a degree in business and legal studies from UCD and a Master of Accountancy from UCD Smurfit School. She is a member of the board and treasurer at Meath Women’s Refuge and Support Services. Tell us a bit about yourself, and when and why you decided to become a Chartered Accountant? Both my parents worked outside the home when I was growing up, and they always emphasised the importance of finding a career I would truly enjoy and that would give me the freedom to do anything I wanted in life. While at secondary school, I was also fortunate to have a very inspirational business and accountancy teacher, Ms Bird, whom I admired greatly. I think it was her influence, coupled with my parents’ guidance, that led me to pursue a career as a Chartered Accountant. It is a profession that offers many opportunities to work in a wide range of areas and in different parts of the world, providing a solid foundation for significant professional growth. Has your career unfolded as you anticipated or were there some surprises along the way? I wasn’t organised enough to have a career plan, but I knew coming out of college that I would like to undertake a graduate programme with a large accountancy practice, focusing on the restructuring area. I liked the idea of helping struggling businesses to formulate turnaround strategies to help them find success and profitability again. The years I spent working at KPMG were some of the best of my career. I had the opportunity to support some of the biggest Irish and international companies across a wide range of industries and gained firsthand insight into the challenges management teams and businesses can face. I then joined ESB Group and continue to enjoy fantastic opportunities working across all areas of the energy industry. The decarbonisation of the energy industry in Ireland is a key enabler for the transition to a net zero future for Ireland. While this wasn’t something I was thinking about when I joined ESB Group, it is one of the reasons I have stayed here for 10 years. I am deeply committed to the vision outlined in our Net Zero by 2040 strategy and I am driven by the actions I can take to help achieve this goal. I have always been open to accepting new opportunities as they arise, and this has led to me meeting some truly inspirational people, working on projects I could never have envisaged and being successful in my career. What does your role as ESB’s Investor Relations and Credit Rating Manager involve day-to-day? My role is ultimately about sharing ESB’s vision, strategic ambitions and financial results with our investors and credit rating agencies. As a semi-state entity, ESB relies solely on debt investors for external funding to finance our extensive capital investment programme as we work towards decarbonising the electricity sector in Ireland. Maintaining our credit rating of A- is therefore critical to ensuring we have access to the bond markets. No day is the same – my role offers lots of variety. I spend a lot of time meeting with investors and discussing ESB, its net zero goals and the associated funding required to achieve those goals. In recent years, we have seen investor interest extend beyond our financial results to encompass our sustainability goals, progress and achievements. In 2024, investors have been particularly interested in our plans for reporting under the Corporate Sustainability Reporting Directive, and in our two recent publications outlining ESB’s sustainability leadership plans and pathway to net zero. I also work quite closely with colleagues internally, providing advice and guidance on our credit rating and investor requirements, and assessing and advising on the implications of certain transactions from a credit rating and investor perspective. Are you glad you made the decision to qualify as a Chartered Accountant? Yes. The Chartered Accountant qualification is highly regarded in Ireland and worldwide. I found the training prior to qualification and subsequently, through continuing professional development, both relevant and informative. It has helped me to build the capability and skills needed to succeed as new challenges arise. Among the people you have worked with over the years, who has been your biggest inspiration? I have been lucky enough to work with some wonderful people throughout my career who have inspired me and whom I very much admire. I have also had mentors and coaches who have provided inspiration and guidance, especially at times of big transitions in my life such as returning from maternity leave, undertaking new roles and seeking promotions. I am quite passionate about the impact mentoring can have in helping individuals achieve professional success. I currently manage the finance mentoring programme at ESB, an award-winning scheme that helps finance professionals build the capability and skills to achieve their career goals. One of the most important lessons I have learned over the years is the importance of building relationships. Success is achieved through working with people. Significant changes are underway in the energy industry right now and it is only by working together, with an open mind and a willingness to learn, that we will be able to deliver what is required to meet our net zero goals. How has the role of the Chartered Accountant evolved since you joined the profession? At ESB, we have Chartered Accountants working in all areas of the business – not just on the finance team. Chartered Accountants are seen as strategic advisors, commercially focused and thoughtful leaders who can provide insights and guidance on a wide range of topics. The Chartered Accountancy qualification is a great foundation for any career. It helps to build skills that can be used across a range of business areas. What advice can you offer ACAs starting out on their career path today? The best advice I can give is to be open to exploring new opportunities and experiences as they arise. Building a strong support network is also key to success. Who do you admire most right now in business or public life? I remember the election of Mary Robinson as the first female President of Ireland. Even as a child, I was aware of how she had rocked the system and the positive impact she had on women in Ireland and globally. Throughout her life, she has used her position to highlight issues like domestic violence, lobbied for women’s rights and held perpetrators of human rights abuses to account. Today, Mary Robinson continues to use her voice and platform as an advocate against climate change through her role in Project Dandelion, a woman-led initiative addressing climate change. Her strong commitment to women’s rights, human rights and to addressing climate change, specifically from a female perspective, really resonate with me. I see her as a great role model. What are your plans and ambitions for 2025? I have two key focus areas for 2025: sustainability and artificial intelligence (AI). I have committed to taking part in the ESB Sustainability Navigator Programme, an initiative aimed at creating a culture of sustainability leadership throughout the organisation and I am looking forward to growing my knowledge in this area. On the AI front, ESB was one of the first companies in Europe to deploy copilot for Microsoft 365 and I am hoping to enhance my learning and use of this platform throughout 2025. This will hopefully help me to focus on high-value activities and improve knowledge-sharing and collaboration within my teams.

Julia Rowan answers your management, leadership and team development questions Question I am a mid-level manager in a large company with four direct reports who all manage teams of three to five people. We work to high standards and I don’t think we have any problems. I have one-on-ones with my direct reports and the five of us meet every fortnight. About once a month, the whole department meets. Should I be doing anything differently? We’ve worked hard to get here, and I don’t want to rock the boat, but I think we have more to give. Answer It sounds like you are doing a lot of things right. This is a great time of year to look at how the team functions and put strong foundations in place for the year ahead to increase your relevance and visibility. I trust that you and your team have more to give. Employees appreciate being consulted – and managers are often pleasantly surprised by their insight and interest. I suggest that some carefully planned team events could be very productive. Begin by working out what you want for your team and the service you provide. If you could describe “a better team,” what words would you use? Feel free to use words like “more” or “less,” and then change “less” to “more” (e.g., “less dependent’ might become “more independent”). If your organisation has a strategy, read it and reflect on where your team intersects. Consult with your direct reports to make sure they are on board. Organise a half-day session with the whole team. Plan it well and make it feel special – offsite, if possible, refreshments on arrival, lunch to finish, etc. Open the session by discussing your strategy and the team’s strengths. Celebrate wins – big and small – to build confidence and acknowledge contributions. Keep the focus positive while the teams build confidence in engaging in this type of process. For example, identify lessons learned rather than mistakes made and use interactive activities like a SWOT/SWOC analysis (strengths, weaknesses, opportunities, threats/challenges) to assess the team’s current standing and potential for growth. Don’t rush the pace – it can be really useful to meet a few times as issues can settle, and ideas can emerge between sessions. Consider the perspectives of stakeholders, including your senior team, customers and suppliers. One effective way to do this is by placing a few chairs in the room to represent them. Invite your team to occasionally take the seat of these stakeholders and ask questions such as, “What do they want from us?” and “What else can we provide for them?” This allows team members to see things from a different perspective. A valuable outcome of a session like this could be that team members ask for feedback from stakeholders using a set of agreed-upon questions. Use the opportunity to strengthen relationships within your team. For example, you might ask people who they would like to acknowledge or appreciate or which team they would like to work more closely with. As ideas about ways forward emerge, you might translate these into goals for 2025 – perhaps allocating ownership to front-line team members. This provides a nice connection to your team meetings. 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 If you read one thing... “The Boy, the Mole, the Fox and the Horse” by Charlie Mackesy is a gentle book that addresses human emotions like love, vulnerability, courage and connection. Beautifully illustrated, it would make a lovely takeaway from a team session.

As we draw the curtain on a challenging year, three Chartered Accountants offer their personal insights and predictions for the Irish economy in 2025 John Donoghue, Chief Executive Officer at Ifac As we look ahead to 2025, Ireland’s farming and agribusiness sectors face a pivotal year marked by both opportunities and challenges. While 2024 has delivered favourable weather conditions and decent commodity prices, regulatory and environmental hurdles will test the resilience of agricultural enterprises in 2025. The most pressing concern is the potential loss of Ireland’s nitrates derogation. The derogation has been crucial in enabling Irish farms to maintain high productivity levels, and its removal would require significant operational changes. At Ifac, we are conducting extensive stress testing with dairy farmers to assess various scenarios, including reduced herd sizes, expanded storage facilities and land acquisition strategies. We recently welcomed Dr Rosie O’Neill as Director of Sustainability, and she is working closely with businesses in food and agriculture to help them plot their sustainability journey. Sustainability has emerged as the defining challenge across farming, food production and agribusiness. Large food producers face mounting pressure from retail customers to demonstrate not only their own environmental credentials but also the sustainability of their entire supply chain. The dairy sector appears to be reaching a plateau after years of expansion. Current trends suggest the number of dairy farmers in Ireland could decline from 16,000 to about 12,000 over the next five to six years, presenting significant output risks and a big challenge for our major dairy co-operatives. The regulatory burden continues to grow, particularly with the Corporate Sustainability Reporting Directive (CSRD) coming into effect. From 2025, a broad group of our corporate clients will need to report on their sustainability metrics, adding another layer of complexity to business operations. Export markets offering growth opportunities and expansion into larger markets, particularly the UK and US, remain crucial for our food producers. The road ahead demands a delicate balance between maintaining productivity and meeting environmental requirements. Success will require investment in sustainability initiatives, careful strategic planning and continued innovation across the sector. Sarah Meredith, Tax Partner at Grant Thornton From the perspective of a tax advisor, my hopes for 2025 include simplifying and bringing certainty to the tax code. We have witnessed some seismic changes to the tax landscape in recent years, driven largely by the Organisation for Economic Co-operation and Development (OECD) and European Union initiatives. For groups within the ambit of the OECD’s Pillar II rules, the approach to tax compliance has fundamentally shifted from 2024, regardless of whether there is ultimately further top-up tax due.centre The Department of Finance has launched several initiatives centred around simplification, including the interest review and examining the SME sector to streamline tax-related matters. It would be hugely beneficial to see tangible results from these reviews. Alongside the tax regime, I would also hope that Ireland – and, in particular, the new government – will address issues such as housing, infrastructure, planning and the funding of higher education. These are the crucial pieces of the jigsaw for Ireland to remain competitive. With falling interest rates, supported by lower inflation rates, I would be hopeful of higher deal flow and activity within the economy. The modified domestic demand (a proxy for the domestic economy) is forecast to grow at circa 2.6 percent annually from 2024 to 2026, buoyed by the continued strength of the labour market. These factors should all provide a good foundation for maintaining Ireland’s competitiveness and attracting inward investment. Overall, Ireland's future looks bright, but we need to ensure we provide a solid framework within which businesses can continue to grow and expand, which should be supported by both infrastructural improvements and the provision of tax certainty. Mark Flood, Director at Renatus Capital Partners Parking the obvious global geopolitical elephant in the room, we are very positive about the outlook for businesses in Ireland in 2025 for three reasons: The wave of inflation we have seen in recent years appears to be receding – the hangover remains for some, but in the main, many have either recovered increased inflation-driven cost to the top line or learned to be nimbler with their costs to counter its effect. There is historically low leverage out there among SMEs – they can withstand a lot. The healthy position of the Irish exchequer. Notwithstanding, there is a cohort of people and companies trapped by higher costs and capped income. Though these are in the minority, we should spare a thought for them. We have the best entrepreneurs in the world, and there are so many companies going global. At the same time, foreign funds are coming to Ireland because they see us as a country of great businesspeople and entrepreneurs. I spoke recently to a restaurant owner in a university town where, unlike others, accommodation has been injected. She told me her labour challenges had been largely solved by people living in her town and working part-time. It would be great if we could solve the accommodation crisis on a broader basis to improve the situation for all. Let’s hope we can solve our housing problem, that global geopolitical developments do not create further challenges and we can continue to drive on in 2025.

Barry McCall speaks to Xeinadin Area Managing Partner Paul O’Connell about the firm’s rapid growth in Ireland, multi-million euro investment programme and the outlook for the Irish economy  Formed just five years ago in the UK, Xeinadin has grown at pace and now has over 135 offices, more than 2,000 professional advisors and 80,000 clients across Ireland and Britain.   “We are ranked eighth in Ireland in terms of turnover,” notes Area Managing Partner Paul O’Connell whose own firm, Cork-based Quintas, joined Xeinadin in late 2023.  Looking back on the history of Xeinadin, O’Connell explains that it was established in 2019 when some 100 accountancy practices came together to collaborate and share resources.  “At the start, it was a group of independent firms agreeing to collaborate, but they worked together to build a core structure to bring the different offices together,” he says. “They set up shared IT systems and HR, compliance, training, business development, marketing and finance functions and, today, we are one ‘Xeinadin’ – one firm with one structure and common systems and policies. It’s not a franchise or a network model. We are one firm with everyone in it collaborating together as colleagues.” Growth ambitions The firm’s growth ambitions received a significant boost when private equity investor Exponent bought into it two years ago. “Xeinadin has been on the acquisition trail ever since,” says O’Connell.  “Thirty offices joined the firm in the last two years, and we see significant further consolidation in the accountancy sector over the next two or three years.  “Exponent has been a brilliant partner to work with and have been hugely supportive. They have really got involved in a positive way to drive the growth and development of the business.” Six months ago, Xeinadin announced a €40 million investment in the Irish market with the aim of further expanding its footprint here with a core focus on taxation, business advisory and audit services for SMEs across the country. “We have already pretty much committed 40 percent of that,” O’Connell says. “We are at the advanced stages of legals and due diligence with five firms and we hope to complete those deals over the coming months. We are well down the road in terms of committing the €40 million.” The business has a strong regional focus, he adds.  “We are already in Dublin, Kildare, Kilkenny, Wexford, Cork, Limerick, Galway and Belfast and we are now focusing on areas like the Midlands, Waterford, Kerry and Mayo. We already have an office in Galway, but we want to expand there. We still have an eye on Cork, Limerick and Dublin as well, of course.  “Other firms looking at consolidation tend to focus on the major cities. We have a different focus because our client base is mainly made up of SMEs and having a local presence is really important to them and to us. We want to be close to them to build lasting relationships.” Location isn’t the only determining factor and Xeinadin is highly selective in the firms it wants to acquire, O’Connell points out.  “We are targeting high quality firms with ambitious partners who want to join us on a journey to drive the business on and avail of the growth opportunities being part of Xeinadin can bring.” The backing of Xeinadin is important in a number of ways. “Most smaller firms aren’t in a position to offer speciality services to their clients. They can offer those services through collaboration with other offices in the group,” O’Connell says.  “That will enable them to become the firm of choice in their locality helping to drive growth. My own office here in Cork has seen its headcount grow by 20 per cent since we joined Xeinadin.” Consolidation in accountancy The trend towards consolidation is by no means limited to the accountancy sector. “We are seeing it across every sector and in our own client base where the volume of transactions has been increasing steadily in recent years. The reasons vary but there are a number of core drivers. Succession planning is one.” As O’Connell sees it, the old model among accountancy practices – whereby a new partner would borrow to fund their way in to replacing a retiring partner – doesn’t really work anymore.  “Socio-economic changes mean that people are buying homes and starting families later in life. They don’t have the access to finance they did in the past. There has to be a different way of accommodating generational change.” He also notes other challenges facing small practices with one or two partners, including the necessity to meet the fast-changing and more complex needs of business clients.  “As part of Xeinadin, firms have access to the resources of the whole group when meeting those needs. With artificial intelligence coming down the line and the requirement to keep pace with issues like sustainability, this is very important.” Recruiting and retaining good employees is equally important says O’Connell, pointing to an example where one of the firm’s offices in a regional location was experiencing difficulties recruiting a Tax Partner.  “They were struggling due to their location,” he says. “We were able to recruit the partner here in Cork and they can now work in a Cork city location for that office. That would not have been possible in a standalone situation.” Similarly, when the Dublin office needed assistance with a large audit job, the Cork office was able to send a team to help out. The firm also offers good opportunities for young accountants, O’Connell says.  “Xeinadin can offer better training programmes and structured graduate programmes small offices just can’t provide. There is also the opportunity to move to other offices, both in Ireland and the UK, where they can gain experience working with a much wider variety of clients.” Economic outlook Turning to the economy and the recent budget, O’Connell is somewhat disappointed with the lack of business supports provided. “There was little or nothing in the budget for business,” he says. “It was very much focused on individuals.” The lack of movement on the hospitality VAT rate was especially disappointing. “I strongly believe the VAT rate should come down to nine percent, particularly for food. This is an absolute necessity. The 13.5 percent rate could be retained for accommodation. We have seen a large number of closures in the industry over the past 12 months and there are many more coming down the track.” Outlining some of the cost challenges facing the industry, he says: “The minimum wage has gone up by 38 percent since just before Covid, for example. Even people working in the industry don’t fully appreciate the cost challenge.  “I visited a restaurant client recently and I went through the costs involved in producing one of their best-selling brunch menu items. By the time I had gone through everything from the raw material and labour and the costs of napkins and energy to the share of overheads, they were left with a profit of 20 cent from the €13 charged to their customers. I hope the new government addresses the VAT rate as a matter of urgency.” He is more optimistic about the outlook for the wider business community in Ireland. “There is real positivity out there in terms of the economy. Cork is flying, but we do need further investment in transport and infrastructure.” Returning to Xeinadin and its future plans, conversations are already underway with other potential targets for acquisition with the remainder of the €40 million.  “Firms are aware of what we’re doing, our approach and the value we bring. It’s not about growth for the sake of growth. It’s about targeted growth in the regions and other specific areas. And firms joining Xeinadin have to align with our values, culture and long-term vision for the business.”

Larissa Feeney’s varied career set her on the path to business success as founder of award-winning online accountancy and business services firm Kinore, writes Barry McCall It may come as a surprise, but the founder and CEO of the Irish Accountancy Awards Online Practice of the Year didn’t set out to be an accountant. Despite accounting being her best subject in school, Larissa Feeney initially wanted to pursue a career in hospitality. “Looking back now, I don’t know if I got the right guidance at school or just didn’t listen to it,” says the Kinore founder and Chief Executive who has built Ireland’s first online, remote-first finance and business services company from revenue of €300,000 in 2017 to €4 million today. “We have seen year-on-year revenue growth of more than 30 percent and we are aiming to grow revenue to €15 million by 2028. We also plan to double our workforce from 75 to 150 employees over the next 18 months,” Feeney says. This remarkable success story began 25 years ago when the Ulster University hospitality graduate decided on a change in career direction. She had been working at a Donegal hotel for the summer following her graduation. “It was almost like Fawlty Towers,” she recalls. “It only opened for the season, and they threw everything at it. We worked morning ‘til night for seven days a week.” Then Feeney spotted an unusual job advert for a Director of First Impressions – receptionist – with Claremount Chartered Accountants in Derry. Not only was she intrigued by the advert, she was attracted by the idea of a nine-to-five job. “The Managing Partner, Gary Heaney, was very much ahead of his time and open to new ideas. That was my first exposure to an accountancy practice. I got to see just how important accountancy is. I saw clients coming in worried about something and coming out feeling okay. The impression I got was that accountants solved their problems for them.” Path to accountancy Her experience at Claremount Chartered Accountants set Feeney on a new path. “I asked the Managing Partner if the practice would put me through the accountancy exams and he said yes.” She qualified as a Chartered Accountant in November 2004 and stayed with the practice until the end of her contract in June 2005. “It was a fantastic journey. Gary Heaney didn’t have to say yes. If he had said no, things might be very different.” Feeney’s decision to leave was prompted by a desire to further her career. “I went into industry. I have always been fascinated by business and I wanted to learn about its inner workings.” She went to work for JML Transport in Donegal. “It was quite a significant business at the time. One of the directors, Bríd McLaughlin, was an unbelievable businesswoman. I gained great insights from her on the minute detail of how to run a business well. That was my first exposure to a woman in a senior position in business and it left an impression on me. She was well able to hold her own in a very tough, very male dominated business in an industry with tiny margins. I never would have got those insights had I stayed in practice.” Fate played a hand at that point. While Feeney was on maternity leave with her second child, the company sold off a substantial chunk of its business.  “While on leave, I had local people coming to me asking if I could do their books and VAT and so on. I asked if I could come back two or three days a week and keep on doing the other work. Bríd McLaughlin said yes. I reduced my time with JML over the years and the company eventually became a client. It happened quite organically, there was never a full stop when I jumped into self-employment.” Concept for Kinore The next significant point in Feeney’s journey came about as a result of another newspaper advert, this time from an accountancy practice in Derry looking for an accountant to take on work on a sub-contract basis.  “The accountant had been ill for a year, and it was coming up to UK self-assessment time in January. He had 30 to 40 clients and was struggling to get their tax returns done on time. I drove over, picked up the files and did the work back at home. It worked very well. He then offered to sell me the book of clients and that was really the start of me building my own client book.” Looking after all those clients from home planted a seed. “They didn’t care where it got done so long as it was on time and correct,” Feeney says.  “That was what started the concept of Accountant Online (the former name of Kinore). The website went live in 2011.  “Client numbers were very low at the time. I was doing everything myself, including blogging and web posts and so on. The first call I got was from a company in Cork that wanted me to do their accounts. It was during the recession, and I probably benefited from that. Companies were looking for cost-effective alternatives for everything at the time.” Roll on five years to a discussion in Derry about Brexit. “One of the people there represented an investor who decided to put some money into the business to take a small stake in Accountant Online,” Feeney explains.  “It wasn’t just about the money. The investor brought skills and advice as well. In 2017, I hired our Director of Sales and Marketing, Rose Kervick. Having her coming in at senior level helped to grow the business.  “An accountant has a very narrow set of skills, and you need a broader set to grow a business. Rose really helped in that area. We invested in digital marketing, online client engagement and so on. It has been a super growth journey since. There have been huge learnings on the way and loads of things I did right and didn’t do right.” Business expansion It has been difficult to keep up with the growth of the business at times, Feeney says. “You have to make sure you have the right structures in place. We are accredited to ISO standards and always make sure the quality is correct in areas like cyber and data security. We are also investing in automation and digitalisation.” For her, the key learning has been the importance of having the right people around you. “When you have the right team around you, you can achieve your goals. If you get that right, everything else is doable. The other one is the importance of our clients. We always put our clients at the centre of what we do. We work in partnership with them, we go on a journey with them. That’s our culture.” Looking after the people in the business is also important. “Working remotely can be hard. You don’t have learning by osmosis and water cooler moments. We are intentionally remote, and we invest massively to do it really well. What you save on office space you need to invest in bringing your people together.” Having grown a multi-million euro business while also being a busy mother to three children, Feeney has some advice for other businesswomen.  “It is not possible to grow a business and raise a family without a massive amount of support. You can’t do it on your own. I have had great support in the business and at home. My husband has been a massive support. You need to delegate, delegate, delegate and have the best people around you in all areas.” Looking ahead, she says the future is “growth, growth and growth.” “I am very lucky to have a young, ambitious and driven senior team in the business. They want to grow the business and help the people in it to reach their full potential. We will grow organically in Ireland and will expand into export markets and through acquisitions.”

Barry C. Melancon, outgoing CEO of AICPA & CIMA, talks to Accountancy Ireland about the need for the profession to learn and adapt at a time of rapid change and unprecedented opportunity Accounting is undergoing change as never before, driven by the evolving needs of global business, regulatory regimes and – above all – the rapid emergence of new technologies that promise to transform the profession in the years ahead. Amidst all this change, a willingness to learn and adapt will be critical for accountants in all sectors. “Now is a time for reflection, particularly for those in our profession at the mid-career stage,” says Barry C. Melancon, CPA, CGMA.  Melancon is the outgoing CEO of the Association of International Certified Professional Accountants, the professional body formed by the American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA). “Younger people are coming in as digital natives and the pace of change in the world today, certainly with regard to technology, requires us to be fully committed to adapting our competencies to keep pace,” says Melancon. “It is not the first time change has been required in our profession – for us, change is a constant – but the leap we need to take today is bigger than ever before, and we will need to adapt faster than ever before.” Committing to change as a constant In his role as President and CEO of the AICPA, Melancon was instrumental in overseeing its alliance with the Chartered Institute of Management Accountants to form the Association of International Certified Professional Accountants (AICPA & CIMA). Established in 2017, the association now has close to 600,000 members, candidates and registrants in 188 countries and territories worldwide. As he prepares to hand over the reins to incoming AICPA & CIMA CEO Mark Koziel, Melancon reflects on his achievements over three decades as AICPA’s longest serving CEO. “Serving the profession over the last 30 years has been a great honour and I have been fortunate to have played a part in its transformation,” he says. “The reality is that the role has been a change management process from the very start. The question at the outset was, ‘how do we create the organisation of the future?’ “My goal was to make the AICPA an organisation that would create a more permissive environment in which the profession could broaden its reach and become more successful – and I do sincerely think we have succeeded in opening people’s eyes to what the profession can be. “At the same time, today – as much as at any other time in the last 30 years – the importance of trust in our profession is paramount. “Trust is our trademark and, no matter how much or how quickly the world around us changes, we must continue to be committed to the trust and objectivity that sets our profession apart, and the value we create for those we work with.” Broad business lens Melancon grew up on the Gulf Coast of southern Louisiana and graduated from Nicholls State University in 1978, majoring in accounting with a minor in government policy.  “I went to university thinking I would be a lawyer and, during my first semester, realised I had a greater interest in business. I took an accounting course and discovered that, if I wanted to have a strong business perspective, accounting would be the best path to take,” he explains. “My perception was that accounting could give me the broadest ‘intellect’ as it relates to business. All the disciplines of business are encompassed in accounting in some form – management, economics, finance – the whole gamut.  “I think this still holds true today. This profession gives us the best and widest lens of all business disciplines.” Melancon began his accounting career in 1979 with a CPA firm in Louisiana before being appointed CEO of the Society of Louisiana Certified Public Accountants in 1987 and, subsequently, as CEO of the AICPA in 1995. “Like many people in our profession, I started out doing accounting, auditing and tax work,” he says. “I had a goal to become a partner in a CPA firm by the age of 25 and, as I’d started school at a very young age and skipped years along the way academically, I succeeded in reaching that goal.” Crucial role as trusted advisors At this early stage in his accounting career, Melancon worked exclusively with small and medium-sized enterprises (SMEs) and not-for-profit organisations. This experience, he says, formed his “early accounting perspective” and instilled an abiding respect for the value of SMEs in economies worldwide and the critical role accountants play in supporting and elevating entrepreneurial endeavour for the benefit of all. “This has been really key for me as as President and CEO of AICPA – creating an environment in which our profession can flourish has been about that wider business lens,” Melancon says. “There are thousands of SMEs around the world. SMEs are the lifeblood of most economies, both established and emerging. Entrepreneurs see opportunities and build businesses, and the expertise of the accounting profession helps them succeed and grow. “Society benefits, but we know SMEs also have high failure rates. They can have a much higher success rate if they walk hand in hand with a professional who really understands all aspects of their business and can act as the purveyor of truth and effective information.” As Melancon sees it, accountants have a crucial role to play as trusted advisors whose strategic and principled guidance is critical in business the world over. “Often, you will find that an accountant working with a business owner knows more about them than anyone else,” he says.  “If the business owner has a health issue or personal challenge, they will ask their accountant, ‘What does this mean for my business? What should I do?’ If they have concerns about competitors, cashflow or business acquisitions, the accountant is the first person they will consult.  “The business owner will understand their business model, the products or services they are selling and the market they are selling to, but their accountant will be the expert in pretty much every other aspect of how to run the business to make it successful.” Elevated role of the profession Beyond the SME environment, accountants in practice and the corporate world are assuming an increasingly prominent role in the boardroom. “Our role right across the board is becoming more strategic. It comes back to that ‘wide lens’ we offer and the higher-level skills we apply to deciphering the complexity of the world we operate in,” Melancon says. “In the corporate environment, leadership is looking to the finance function for more answers, particularly in areas such as environmental, social and governance (ESG) where decision-making is increasingly data driven. “If we look at the audit function, particularly in relation to larger capital market companies, we have moved from purely auditing financial statements to providing third party assurance across a whole range of areas, from ESG to cybersecurity, and this will only continue to expand. “With artificial intelligence (AI) – right now, people are really not sure if they can or should trust it. This will change and it will change rapidly – and we, as a profession, will be key to providing the assurance, objectivity and trust that is needed.  “Our tagline at AICPA & CIMA is, ‘We empower trust, opportunity and prosperity.’ That’s not just about the profession; it’s about society at large.” Emerging business models In tandem with the evolving role of the accountant, the traditional structure of accountancy firms is also changing. “AI, in particular, will fundamentally change the ‘shape’ of accountancy firms and the traditional leverage model,” Melancon says. “With the leverage model, the largest number of employees in accountancy firms have traditionally been at the entry-level – the base of the organisation – where a significant amount of the firm’s transactional activity has taken place. “As people starting out at entry-level progress their careers, they move up to the middle of the organisation, where there is a greater need for cognitive skills and business acumen. “Then, at the top of the pyramid, on the corporate side, you have the C-suite executives and in the firms, you have the partners and owners.  “This leverage model has served our profession well over the years, but, today, the need for all that work at the ‘base’ or entry level is rapidly falling away, in part due to technology like AI and automation. “Instead of pyramid-shaped firms, we will be predominantly ‘fat-middle’ organisations, so we will need to get more people into that middle more quickly with the business acumen and skills they need to build strong relationships with clients.” Robert Stokes award On a recent trip to Dublin to attend the Global Accounting Alliance Board Meeting in late October, Melancon received the Chartered Accountants Ireland Founders Award. The Robert Stokes Medal was presented to Melancon by Barry Doyle, President of Chartered Accountants Ireland, at a special event, in recognition of his outstanding contribution to the accounting profession.  The award represents the characteristics of Robert Stokes, the founder of Chartered Accountants Ireland, a pioneer and a courageous independent thinker, committed to fairness and “levelling the playing field”. Looking ahead to the future of accounting and younger generations entering the profession, Melancon reflected on the need for passion, ambition, commitment and confidence. “Accounting is a profession; it is not just a job. I think this mindset is really important. I don’t think people in any generation can expect to have truly long-term career success unless they understand the need for this professional commitment. Passion is important.” “When I became CEO of the AICPA at 37, a very wise person who headed up one of the largest professional services firms in the world at the time, said to me, ‘Barry, I don’t know you, but I know people put you in this position and my only advice to you is to be yourself.’ “I think the younger generation coming into accounting do bring themselves to the profession. They bring something new and valuable in terms of what they have learned and how they have learned it. “They are more tech-savvy and probably more worldly. They have access to much broader information sets. My message to these younger accountants is to value all of this and to ‘be yourself.’  “You also need to have clear goals and the confidence to speak to others around you about your goals and how to reach them. Seek people’s help and advice, and act on it.  “When I started out in my first role with that small firm in Louisiana, the Partners knew I wanted to be a Partner myself by 25.  “I wasn’t shy about it, and they supported me. They told me, ‘This is what you need to do to get there,’ and I was able to achieve my goal.  “It is important to have the confidence to talk to the people above you in a constructive, honest and positive way about what you want to be – to be yourself, in other words.  “Our profession requires that kind of commitment and, with their skills in technology, younger accountants today can play a very important role in preparing our profession for tomorrow.” *Interview by Elaine O’Regan

Integrity due diligence is essential for identifying risks, protecting reputations and ensuring compliance in today’s evolving business landscape, explains Deirdre McGrath Integrity due diligence (IDD) identifies risks that traditional due diligence might miss by using a risk-based approach to review the compliance and integrity of potential counterparties. Key risk categories reported on include financial health, anti-bribery and corruption, political connections, environmental impact, reputational risk (e.g. adverse media) and labour/human rights issues. Trust, reputation and risk mitigation are crucial in today's fast-paced global business environment. Knowing your customers, suppliers or contractors before and during business engagements is essential for making informed decisions and managing risks effectively. Public scrutiny and evolving regulations are putting increasing pressure on companies to identify and mitigate risks with business partners, including suppliers, customers, agents and employees. These risks encompass sanctions, financial sustainability, environmental impact, forced labour and human rights abuses. New EU regulations mandate supply chain mapping and human rights risk assessments. For instance, in March 2024, the European Council and Parliament agreed to prohibit products made with forced labour. IDD reviews can identify these risks.  PwC’s 2024 Global Economic Crime Survey revealed that only 50 percent of Irish companies had a third-party risk management programme. IDD is crucial for risk mitigation, helping organisations understand their counterparties and make informed decisions. For companies, IDD can identify ownership structures, business activities, clients, partners, financial performance, reputation, misconduct, disputes, litigation, key stakeholders, sources of funds and political connections. For individuals, IDD can examine career history, corporate affiliations, directorships, shareholdings, adverse media, litigation, financial positions, reputation, financial trends, insolvency, political connections, donations and sources of wealth. The UK’s Financial Conduct Authority (FCA) recommends open-source internet checks as “good practice” for human resources and high-risk customer research. Benefits of IDD IDD is essential for an organisation’s risk assessment process, helping meet obligations related to anti-money laundering, bribery, corruption and environmental, social and governance requirements under the Corporate Sustainability Reporting Directive and other regulations, such as those issued by the Central Bank of Ireland. It supports due diligence and compliance for mergers, acquisitions, investments and joint ventures. When adverse issues are identified, businesses can make informed decisions to either withdraw interest or implement mitigating procedures to protect their integrity and reputation. IDD also aids in reputation and brand protection by highlighting risks associated with existing or potential suppliers in relevant jurisdictions. It provides strategic, competitive intelligence by gathering information on competitor strengths and weaknesses, impacting growth opportunities and long-term strategy through industry trend analysis. In legal proceedings, IDD can play an important part in securing financial orders by identifying evidence to recover misappropriated funds. For higher-risk third parties, IDD can form part of a legal defence, demonstrating that a corporate body took “all reasonable steps” and “exercised due diligence” to avoid bribery and corruption offences. There are several use cases for IDD, which are outlined below. Know your client, supplier or employee: Conduct detailed reviews of business partners or potential hires, focusing on key risks such as financial performance, reputation (both positive and negative), and ESG risks. CSRD: Help clients report using the European Sustainability Reporting Standards (ESRS) and support company and auditor determinations that a topic/sub-topic may or may not be material to a company. Fitness and probity diligence for regulated firms: Perform background checks on individuals to support initial and ongoing fitness and probity certifications for key and customer-facing roles under the Central Bank of Ireland’s Individual Accountability Framework. Global sanctions screening: remediation screening, support for sanctions investigations and ongoing monitoring or advisory services for sanctions policies, procedures and processes. Mergers and acquisitions diligence: Identify information to evaluate businesses, assess potential value, and understand legal risks associated with transactions, including liability, debarment, prior conduct, ownership and management conflicts of interest. Joint ventures, partnerships, or business alliances: Understand significant risk relationships, especially in higher-risk countries, and assess potential sources of funding, wealth or media findings. Business divestment: Evaluate who you are doing business with or selling your business to, ensuring informed decisions. Investigations: Support investigations by identifying personal, business or social connections between various parties of interest. Asset tracing: This involves identifying assets held by companies or individuals, such as equity, property, and other lifestyle assets. It helps banks pursue defaulting borrowers, supports divorce cases, assists in pre-civil litigation and identifies evidence of fraud or misappropriation of assets. Looking to the future: recent legislative developments Companies should be aware of upcoming European directives, specifically the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD). These directives will increase the focus on due diligence within global operations and supply chains to prevent adverse human rights and environmental impacts. They will also drive more detailed reporting, disclosure requirements and transparency around business processes. Findings from IDD open-source intelligence searches and related human-sourced intelligence resources can help clients avoid penalties for non-compliance with these new regulations. These four key steps will help organisations get ready for IDD: Prepare: start preparing early to ensure compliance with upcoming legislation. Assess: determine if and how the new legislation applies to your company or group of companies. Appoint: designate an internal lead or project team to develop due diligence policies, procedures and infrastructure. Ensure timely implementation of necessary changes. Decide: choose the due diligence process that best suits your requirements. Deirdre McGrath is a Partner at PwC 

Eva Sheehy explores how Irish businesses are leading in ESG readiness, with CEOs confident in meeting 2025 deadlines and reaping financial and strategic benefits As deadlines for environmental, social and governance (ESG) reporting rapidly approach, Irish businesses are intensifying their focus on robust ESG programmes. In the EU, reports are due to start appearing from the largest companies in early 2025, and this reporting wave will require independent assurance on ESG and human rights matters. Recent findings from the KPMG CEO Outlook 2024 illuminate the critical importance of these initiatives, highlighting a strong conviction among Irish CEOs that ESG practices hold financial benefits. Global context vs Ireland's position Globally, the situation is challenging. KPMG research has found that only 29 percent of companies worldwide have the ESG policies, skills and systems in place to be ready for independent ESG data assurance despite looming deadlines. The gap between leading companies and those in the early stages of assurance readiness is also widening, with skills and resources seen as the single biggest challenge for all levels of maturity. However, here in Ireland, we are in a much stronger position. Recent findings from the KPMG CEO Outlook 2024 highlight that 60 percent of Irish CEOs report that their organisation possesses the necessary capability and capacity to meet these stringent reporting requirements – preparedness that is crucial as companies navigate the complex landscape of ESG reporting, which demands transparency, accuracy and accountability. The clock is ticking. In preparing for ESG assurance, businesses are discovering that as they advance, there’s always more to understand and accomplish. This commitment is worthwhile – boards are placing greater emphasis on ESG assurance and leaders are noticing a broader array of benefits as practices associated with it become integrated into their businesses. Robust ESG reporting also provides a framework for continuous improvement as companies set ambitious targets, monitor progress and make informed decisions that drive long-term value creation. Assurance services play a critical role in this process, providing independent verification of ESG data and enhancing the credibility of the reported information. The business case for ESG initiatives The business case for ESG initiatives is increasingly well-defined. Recent research from KPMG also shows that 63 percent of organisations in Ireland are fully embedding ESG into their strategies to create increased value. The return on investment is also predicted in the relatively near future, with 66 percent of CEOs in Ireland believing such robust ESG programmes will enhance their financial performance over the next five years. This integration reflects a broader trend towards sustainability and ethical governance, which not only meets regulatory requirements but also aligns with investor and consumer expectations and underscores the growing recognition of ESG’s vital role in business strategy and its potential to drive value and sustainability for stakeholders. The critical role of robust ESG reporting and assurance As reporting deadlines loom, the importance of robust ESG reporting and assurance cannot be overstated. Accurate and transparent reporting is essential for building trust with investors, customers, and employees. It demonstrates a company’s commitment to sustainability and ethical practices, which are increasingly important criteria for stakeholder engagement. Skills and resources a key challenge Obtaining appropriately skilled and experienced people will also be a challenge. Many businesses are looking for the same skillsets at the same time, and those skills are very specialised. On top of that, the further businesses advance in the process, the more skills requirements they discover they will need to reach full ESG reporting and assurance maturity. This often involves not only hiring new talent, but also investing in extensive training for existing employees to ensure they are up-to-date with the latest standards and practices in ESG reporting. Ultimately, Irish businesses must remain adaptable and proactive as the landscape evolves, requiring a dynamic approach to skill development. This is essential to meet the stringent requirements and to achieve the long-term benefits of robust ESG practices. Eva Sheehy is Director in the ESG Reporting and Assurance team at KPMG

Kate Flanagan shares five expert tips to redefine success, celebrate progress, and climb with confidence on your unique career journey Feeling stuck on the never-ending rungs of the career ladder? Don’t worry, it happens to the best of us. But before you lose hope, remember that the ladder might not be as rigid as it seems. Here is the truth about career progression – it’s not a one-size-fits-all climb. For some, reaching the next rung means a promotion and a new title. For others, it’s about tackling bigger challenges or mastering new skills. The key lies in defining what “upward movement” means for you. Here are five tips to help you climb that career ladder with confidence. 1. Goal setting on the ladder Setting clear goals, big or small, is vital throughout your career journey. What do you want to achieve on the next rung of your ladder? Is it a specific promotion, a certain skill set, or a leadership role? Defining your goals helps you visualise the path ahead. 2. Celebrate every step up Acknowledge and celebrate your accomplishments! Taking a moment to reflect on how much you have learned and grown since you started climbing the ladder is incredibly motivating. You have climbed rungs already, and you can still climb many more. 3. Explore opportunities on your current rung Before aiming for the next step, assess your current position. Is there potential for taking on additional responsibilities? Training programs to boost your skillset and help you climb higher? Talk to your manager and see if there is room for internal growth. 4. Network up and down the ladder Your professional network is your career lifeline. Building strong connections with colleagues and mentors, both above and below you on the ladder, is crucial. These connections can offer guidance, open doors to new opportunities, and even become supporters on your climb. 5. Push yourself beyond the rungs Step outside your comfort zone and embrace challenges. Public speaking, attending networking events, or simply speaking up in a meeting – these experiences push you professionally and equip you for the next rung of the ladder. Remember, your career path is unique. Use these tips to define success on your terms and climb that perfect career ladder – the one that leads you to your specific goals. Kate Flanagan is a Tax, Treasury, and Practice Partner at Barden

New research highlighting the prevalence of burnout in the accountancy profession underscores the importance of understanding the symptoms and reaching out for help, writes Cristian Holmes Being a Chartered Accountant is a highly respected and rewarding career choice, and there are a great many people who are incredibly happy in their role.  However, for some, long working hours and tight deadlines can make for a high-pressure environment, which can sometimes lead to severe physical, emotional and behavioural symptoms we often associate with burnout. New research shows the concerning prevalence of chronic stress and other burnout-related symptoms within the profession. Findings of new research Based on a study of more than 300 Chartered Accountants from a range of accountancy bodies in the UK, our research has found that 74 percent have experienced some form of burnout in the last 12 months. Thirty-six percent reported suffering from insomnia or disrupted sleep, 32 percent had been diagnosed or self-identified with depression, and 29 percent had experienced regular panic attacks. Within their working lives, two in five said symptoms of burnout had impaired their ability to do their job or prompted them to take time off. Excessive workload was cited as the number one cause of burnout (46%), followed by work-life imbalance (45%), monotonous or unchallenging work (32%) and a lack of support from supervisors (31%). 10 signs of burnout   Burnout occurs when we feel overwhelmed emotionally and physically – so much so that it becomes almost impossible to function in our work or personal life or both.  Burnout affects people in different ways. Stress is often an early warning sign of burnout and one of the main symptoms, but here are a few other signs to look out for:  1. Brain fog  Because our brains are worrying about so much, it can impact our ability to think clearly. This can lead to you struggling to understand instructions from your manager and complete basic tasks.  2. Joint pain  Our brains interpret physical and emotional pain in the same place – the amygdala. This means that prolonged emotional pain can also lead to physical pain, ranging from sharp, shooting pains to constant aching and pulsing pains. 3. Tiredness  Feeling fatigued because your energy levels are low can result in you wanting to sleep longer because you’re trying to regain the energy you’ve lost from working so hard. What’s more, operating with less energy can also be more draining. 4. Poor motivation  When you’re burnt out, it can be a challenge to do the things you usually don’t mind doing. You may find you’re struggling to get out of bed in the morning, finding cooking a chore and avoiding team meetings and work outings.   5. Irritability   Low energy levels and the lack of sleep brought on by burnout can also result in people generally having less patience and getting aggravated by things that wouldn’t usually irritate them. 6. Detached outlook  Being pushed to the brink can lead to feeling detached from everything around you. It may be that things you used to enjoy no longer appeal to you, or, in more serious cases, you stop caring about yourself (e.g. personal hygiene) and those around you.  7. Digestive issues  Our digestive system can be heavily affected by our body’s fight-or-flight response. Issues such as diarrhoea, irritable bowel syndrome (IBS), nausea and indigestion are some of the ways stress can impact our digestive system. 8. Anxiety   A constant feeling of dread, and there being no apparent reason for that dread, can be a sign of burnout or generalised anxiety disorder. The disorder can be aggravated or caused by long-term stress and burnout.   9. Constant overdrive   You may find yourself worrying about work, even when you’re taking part in fun activities, such as family days out. When you can’t switch off, it’s not uncommon for you to constantly be worrying about what could happen, even when it might not. 10. Feeling overwhelmed   When you hit a certain point, you may find that you feel overwhelmed emotionally, even if there isn’t much going on. You may have a lighter workload than usual but are struggling to get through it because you have less energy and motivation than usual. Reach out for support We would urge anyone struggling with feelings of burnout to reach out – whether it be to a loved one, a friend or a member of their community.  You will find that no matter how low you are feeling, there is always someone there to support and guide you. You are never alone. Cristian Holmes is Chief Executive of the Chartered Accountants Benevolent Association, the occupational charity for members of the Institute of Chartered Accountants in England and Wales and their close families