Technical resource centre

The Registry of Credit Unions (RCU) has recently uploaded the slides from its auditor roundtable held in July.  The slides are available on the RCU section of the Central Bank’s website.  Members should note that a number of the key issues raised at the roundtable are being addressed in the Credit Union Auditor Update event being held at Chartered Accountants House on Wednesday 27 September.  Presenters at the event include a representative of the RCU on the issue of reporting to the Registrar.  Please click here for more details on the event.

Developments of interest this week are outlined. ROI   The Registry of Credit Unions (RCU) has recently uploaded the slides from its auditor roundtable held in July.  The CRO have issued their regular gazette. UK Sir Win Bischoff, Chairman of the Financial Reporting Council (FRC), spoke about the importance of corporate governance at the launch of SIAS Governance Week this week in Singapore. The Financial Reporting Council (FRC) has issued FRED 68, which responds to the significant differences in accounting treatment arising in practice, in relation to the accounting for gift aid payments made by a subsidiary to its charitable parent. Europe In a speech delivered this week at Accountancy Europe’s event in Brussels on the future of corporate reporting, Chairman of the International Accounting Standards Board Hans Hoogervorst set out his views on how financial reporting will continue to provide a vital anchor for investors in their evaluation of a company. International The International Accounting Standards Board (IASB) has posted a webcast on IFRS 17 covering the accounting for reinsurance contracts. The IASB has issued guidance on how to make materiality judgements. The publication encourages companies to apply judgement instead of using IFRS requirements as a checklist.

Developments of interest this week are outlined. ROI   The CRO have issued their regular gazette. NI Have your say on proposed changes to the charity Annual Monitoring Return 2018, as the Charity Commission for Northern Ireland launches its latest public consultation. UK   The Financial Conduct Authority (FCA) has issued their monthly regulation round-up. Europe The EU Commission has published a Report from the Commission to the council, the European Central Bank, the European Systemic Risk Board and the European Parliament on monitoring developments in the EU market for providing statutory audit services to public-interest entities pursuant to Article 27 of Regulation (EU) 537/2014. International The International Ethics Standards Board for Accountants (IESBA) has released for public comment the Exposure Draft, Proposed Revisions to the Code Pertaining to the Offering and Accepting of Inducements. The International Accounting Standards Board (IASB) has published for public consultation proposed narrow-scope amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

Developments of interest this week are outlined. ROI IAASA, Ireland’s accounting enforcer, has published its report on the results of a survey undertaken on Alternative Performance Measures (APMs) that Irish listed companies included in their 2016/17 annual accounts. The CRO have issued their regular newsletter. The CRO have issued their online Gazette.  UK   The Institute of Chartered Accountants in England and Wales (ICAEW) has published a briefing paper for analysts and other market participants on IFRS 9 'Financial Instruments'. Europe The European Financial Reporting Advisory Group (EFRAG) has published a brochure offering a compact introduction to the organisation. International The International Accounting Standards Board (IASB) has issued, “The Es­sen­tials — Busting insurance jargon.” This issue provides investors aid when trans­lat­ing existing ter­mi­nol­ogy and metrics into the language of IFRS 17. The IFRS Foun­da­tion and the Basel Committee on Banking Su­per­vi­sion (BCBS) have decided to deepen their co­op­er­a­tion to foster long-term financial stability, enhance market dis­ci­pline and further develop sharing of in­for­ma­tion.          

Developments of interest this week are outlined. ROI   The CRO have issued their regular newsletter. UK The Financial Reporting Council (FRC) this week welcomed the Government’s response to the green paper on corporate governance reform and notes that it will use the feedback to help inform the development of its consultation on a fundamental review of the UK Corporate Governance Code later this year. Read more at the link here. The FRC has launched its new website and has refreshed its Mission. Read more here. The Financial Conduct Authority (FCA) has issued the August edition of its monthly publication ‘Regulation round-up’. You can access it here. Europe The European Securities and Markets Authority (ESMA) has published the responses received to its Consultation on guidelines on CCPs conflict of interest management. To view the responses, please click the link here. International The International Public Sector Accounting Standards Board® (IPSASB®) has released Exposure Draft (ED) 62 ‘Financial Instruments’, for comment. The IPSASB® note that it is based on International Financial Reporting Standard (IFRS) 9, ‘Financial Instruments’, developed by the International Accounting Standards Board (IASB®), and that the proposed new Standard will replace IPSAS 29, ‘Financial Instruments: Recognition and Measurement’. The comment period closes on December 31, 2017, and you can read more here.        

As already notified to members in a news item on 3 August, Chartered Accountants Ireland has been made aware of a requirement of the Dublin Metropolitan District Court for an auditor's/accountant's report in relation to licensing renewal applications.   The Licensing Office webpages indicate a requirement from the Court that “in relation to renewals, the applicant (if incorporated) must produce an Auditors Certificate confirming up to date compliance with all filing and tax requirements pursuant to the provisions of the Companies Act 2014.” In line with professional standards, members are advised against the provision of any “certificate” of this nature.  Accountants and auditors may consider assisting clients in relation to licensing renewal applications by submitting an alternative report in the format which was agreed with the Licensing Office for the 2016 renewal process.   A 2017 version of that report is available here:-  Report This report is based on providing factual information on the auditor’s/accountant’s engagement with the client and on the filing dates of the most recent annual return and the due date for the next return.    As regards the issue of ‘tax requirements’, we recommend that members advise licensees to include a tax clearance status from the Revenue’s ROS system with the licensee’s application for renewal.  This is a confirmation of the tax clearance status of the tax payer by the Revenue and more information on this process is available here.  Chartered Accountants Ireland, along with our CCAB-I colleagues, continues to engage with the Dublin Metropolitan District Court in relation to this matter and we have written to explain our position and our recommendation to members.     

Developments of interest this week are outlined. ROI   The CRO have issued their regular newsletter. UK The Bank of England has released a consultation paper setting out its proposed policy on the valuation capabilities firms should have in place to support resolvability. Europe Accountancy Europe are hosting an event on 10 October to discuss the difficulties ‘honest’ entrepreneurs may face in today’s market. The European Securities and Markets Authority (ESMA) has published the responses received to its Consultation on Credit Rating Agencies Endorsement Guidelines. International The IFRS Foun­da­tion has announced a Middle East IFRS con­fer­ence in Dubai on Wednesday 4 and Thursday 5 October 2017. Representatives from the International Accounting Standards Board (IASB) met with both the Capital Markets Advisory Council (CMAC) and Global Preparers Forum (GPF) in London on 15 and 16 June 2017. Notes from the joint meeting have now been released. Hyperinflationary economies - updated IPTF watch list available. IPSASB issues Consultation Paper on Accounting for Revenue and Non-exchange Expenses          

The International Public Sector Accounting Standards Board ('IPSASB') has issued a consultation paper seeking constituent views on potential recognition and measurement approaches for revenue and non-exchange expenses. Conceptually robust and understandable accounting treatments of taxes, transfers and other major sources of public sector income as well as expenses on universally accessible and collective services are fundamental to high-quality financial reporting. The publication of IFRS 15, Revenue from Contracts with Customers, by the International Accounting Standards Board, has provided the IPSASB with an impetus to consider its approaches both to commercial transactions and public sector specific transactions. Further details can be found here. 

The IFRS Foun­da­tion has announced a Middle East IFRS con­fer­ence in Dubai on Wednesday 4 and Thursday 5 October 2017.  In addition to updates on major IFRSs (IFRS 17, IFRS 9, IFRS 15, IFRS 16), better com­mu­ni­ca­tion in financial reporting, and ma­te­ri­al­ity, the con­fer­ence will also feature a panel dis­cus­sion on Islamic accounting. Please click here for further details.