Technical resource centre

Developments of interest this week are outlined. ROI IAASA has issued a Compendium of Illustrative Auditor’s Reports. IAASA has published its ISA 701 Thematic Review. This thematic review explores how a sample of auditors of public-interest entities complied with the requirements of International Standard on Auditing (Ireland) 701, Communicating Key Audit Matters in the Independent Auditor’s Report (ISA 701). IAASA has issued a Feedback Paper and revised ISA (Ireland) 315, Identifying & Assessing the Risks of Material Misstatement. The Central Bank of Ireland has released its Quarterly Bulletin No. 4 for 2020. UK The Financial Reporting Lab of the UK Financial Reporting Council (FRC) has released guidance covering some critical areas of focus for 2020 year-ends. The FRC has this week issued three sets of amendments to UK and Ireland accounting and reporting standards.  The amendments address some topical issues and maintain a necessary alignment with international standards. The FRC has launched a consultation on the proposed revision of its UK auditing standard ISA (UK) 240 (Updated January 2020) - The Auditor's responsibilities Relating to Fraud in an Audit of Financial Statements. European Accountancy Europe has issued the updated editions of 2 audit related publications: 

ISA (Ireland) 315 (Revised October 2020), Identifying and Assessing the Risks of Material Misstatement is available here. The effective date of the revised standard is effective for audits of financial statements for periods beginning on or after 15 December 2021; early adoption is permitted. In August 2020 IAASA published its consultation on the proposal to revise ISA (Ireland) 315, Identifying and Assessing the Risks of Material Misstatement in line with the revisions made by the Financial Reporting Council (FRC) and the International Auditing and Assurance Standards Board (IAASB). They noted that respondents were in agreement with the proposal to issue the revised standard and has published a Feedback Paper.

There has been significant concern among our members about the unprecedented volume of deadlines facing businesses this October, and the Institute has been working to convey these concerns including those relating to the filing of annual returns. Therefore, we are pleased to see that the CRO have announced the extension of the filing deadline for companies with an Annual Return Date falling on 30 September 2020 or later, until 26 February 2021. They will be deemed to have filed on time if all elements of the annual return are completed and filed by that date. The CRO are however encouraging companies to file as normal if they are able to do so. It is important to note that companies with annual return dates before 30 September will still have to file by 31 October 2020. Please also note that if a company availed of section 6 of the Companies (Miscellaneous Provisions) (COVID-19) Act 2020 (the “2020 Act”) in relation to the holding of AGMs, it may, in certain circumstances, be afforded additional time to file its annual return up to the 26th February 2021. Please email electronic.filing@dbei.gov.ie for further information or see the CRO website.      

Developments of interest this week are outlined. Chartered Accountants Ireland Chartered Accountants Ireland has updated the Technical and business updates page on our COVID-19 Hub with updates on Financial Reporting implications of Coronavirus. UK The FRC Lab has published a set of tips intended to help companies consider what content to include in a Section 172 statement, how to present it and how to facilitate the process of preparing the statement. With COVID-19 continuing to impact us all, many companies are facing a challenging year-end. While the uncertainty creates risks for annual reporting it also presents opportunities. The FRC Lab has released two short guides which cover some critical areas of focus for 2020 year-ends. European The European Fed­er­a­tion of Ac­coun­tants and Auditors for SMEs (EFAA) has published the results of a survey that examined the extent of har­mon­i­sa­tion of the accounting for in­tan­gi­bles by SMEs across Europe. The EFRAG have issued an update to their Endorsement Status Report to reflect the endorsement by the EC of Amendments to IFRS 16 Leases Covid 19-Related Rent Concessions. International                                        A summary of recent sustainability reporting de­vel­op­ments at CDSB, TNFD, GRI/SASB, GRI, PRI, in New Zealand and Hong Kong, at Ac­count­Abil­ity, IAASB and CAQ has been issued. Accountancy Europe has welcomed the new EU sustainable corporate governance initiative. The September 2020 IFRIC Update has just been released.  

Developments of interest this week are outlined. UKThe FRC became a signatory to Women in Finance Charter in 2018 and last month they provided an annual update to the Treasury on the commitments and progress made. EuropeanThe EFRAG, along with the IASB, will be hosting an outreach event on 16 October 2020 to discuss how to improve dis­clo­sures regarding ac­qui­si­tions, enhancing im­pair­ment testing and accounting for goodwill. International                                        At a recent meeting of the International Forum of Accounting Standard Setters (IFASS), the standard setters of New Zealand and Australia presented on going concern dis­clo­sures and on the basis of prepa­ra­tion where an entity is no longer a going concern.The Staff of the American Institute of Certified Public Accountants (AICPA), the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) this week jointly released the publication Using Specialists in the COVID-19 Environment: Including Considerations for Involving Specialists in Audits of Financial Statements.    

Developments of interest this week are outlined. UKThe UK Financial Reporting Council (FRC) has published two thematic reviews to help companies improve the quality of their corporate reporting in relation to IFRS 15 'Revenue from Contracts with Customers' and IFRS 16 'Leases'. The UK Stewardship Code 2020 sets high expectations of those investing money on behalf of UK savers and pensioners in 12 Principles for effective stewardship. One of the important changes is the introduction of the new annual Stewardship Report. The recently issued Review of Early Reporting seeks to help prospective signatories in their planning by reiterating the expectations for high quality disclosure published in the Code.The UK Endorsement Board invites preparers of financial statements to participate in a survey on IFRS 17. EuropeanThe European Intellectual Property Office (EUIPO) and Accountancy Europe have come together to provide guidance and promote the benefits of Intellectual Property registration to SMEs.The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published the Final Report on the MiFID II/MiFIR transparency regime applicable to non-equity financial instruments.InternationalThe IASB has updated its work plan, which has been analysed to see what changes have resulted since it was last revised in August 2020.The Technology Working Group of the IAASB has released non-authoritative support for using automated tools and techniques when performing audit procedures.      

IAASA has published its annual Observations paper highlighting some significant topics that those charged with governance should consider when preparing their financial statements for 2020.IAASA’s paper highlights some key areas that warrant close scrutiny by those preparing, approving and auditing 2020 financial statements in the upcoming reporting season including:the pervasive impact of the COVID-19 pandemic on the recognition, measurement, presentation and disclosure of income, expenses, assets and liabilities in companies’ financial statements; andthe challenges and uncertainties facing companies from Brexit.This 2020 Observations paper is addressed primarily to the preparers, approvers and auditors of financial statements and seeks to highlight matters users may wish to be aware of and focus on when reviewing 2020 financial statements. 

Developments of interest this week are outlined. ROIIAASA hosted an Audit Committee Breakfast on 10 September which included a a presentation by their Head of Operations, Lisa Campbell, on the regulatory framework in Ireland.UKThe new UK Stewardship Code took effect in January 2020 - to support prospective signatories in meeting the higher expectations set by the Code, the FRC will publish a Review of Early Reporting and is hosting a webinar to coincide with the launch of the Review on the morning of 30th September. EuropeanThe European Financial Reporting Advisory Group (EFRAG) has published a ques­tion­naire and an in­vi­ta­tion for in­ter­views for preparers with active mergers and ac­qui­si­tions agendas or material goodwill amounts in their financial state­ments.The European Single Electronic Format requirements are coming into force. Accountancy Europe are hosting a webinar on 12th October to bring key stakeholders together for a lively debate to cover the issues around the preparation of ESEF files and providing assurance on their compliance. InternationalThe International Fed­er­a­tion of Ac­coun­tants (IFAC) has released 'Enhancing Corporate Reporting: The Way Forward' calling for the creation of a new sus­tain­abil­ity standards board that would exist alongside the IASB under the IFRS Foun­da­tion. 

Developments of interest this week are outlined. ROIThe Central Bank has published the fourth edition of the Credit Union PRISM Supervisory Commentary Report. The purpose of this Report is to inform all credit unions on the nature and type of risks identified during Central Bank 2019 supervisory engagements, and related supervisory expectations in addressing such issues. UKThe FRC has this week published a draft UK Endorsement Criteria Assessment on the IASB’s amendment Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) (the Amendments).The FRC's Financial Reporting Lab is inviting investors and companies to participate in a new project on corporate disclosures on risks, uncertainties and scenarios.  An independent inquiry into public sector auditing has recommended a shake-up of the sector, with a new regulatory body to oversee local authority audit and the introduction of a standardised statement of services and costs. Sir Tony Redmond’s review into the effectiveness of external audit and transparency of financial reporting in local authorities was set up last June and has now published its final report.EuropeanThe August 2020 edition of the EFRAG Update, summarising public technical discussions held and decisions taken during that month, has been published.The European Securities & Markets Authority (ESMA) September newsletter has just been issued.Accountancy Europe have released the second blog of their COVID-19 sustainable recovery series.