Technical resource centre

Welcome to the Chartered Accountants Ireland's Technical Resource Centre. This resource area is aimed at keeping Members up to date with the latest technical news and helpful resources to keep them abreast of current developments worldwide. There is also a link to our Technical Enquiry Service in contacts and support.

Latest news

Financial Reporting

On 30 March 2017 the Financial Reporting Council (FRC) announced an independent review of the sanctions imposed under its enforcement procedures.  The independent panel appointed to conduct the review has now issued a call for submissions and evidence.  The press release and relevant links can be accessed here.  

May 18, 2017
Financial Reporting

The Financial Reporting Council (FRC) has issued a paper inviting stakeholder comments on proposed revisions to Practice Note 11: The audit of charities in the United Kingdom.  This PN has been significantly revised to reflect the updated regulatory landscape, the implementation of FRS 102 and a new Charities SORP, and the implementation of revised ISAs (UK) in 2016.   Please click here for further details.  

May 18, 2017
Financial Reporting

The European Banking Authority (EBA) has finalised its guide­lines on credit in­sti­tu­tions' credit risk man­age­ment practices and accounting for expected credit losses. The EBA guide­lines build on the guidance by the Basel Committee on Banking Su­per­vi­sion (BCBS) in December 2015 on the same matter and feature a detailed section on the ap­pli­ca­tion of IFRS 9 Financial In­stru­ments. A draft of the guidelines was subject to a three-month con­sul­ta­tion period between July 2016 and October 2016. Please click here for further details.

May 18, 2017
Financial Reporting

The International Accounting Standards Board (IASB) staff has made available a webcast dis­cussing IFRS 9 and the ap­pli­ca­tion of the im­pair­ment re­quire­ments for revolving fa­cil­i­ties. In the webcast, IASB Vice-Chair Sue Lloyd and Technical Director Kumar Dasgupta talk through key re­quire­ments of IFRS 9 Financial In­stru­ments that are relevant when an entity de­ter­mines the expected life of revolving fa­cil­i­ties, such as credit cards and over­drafts, by con­sid­er­ing its normal credit risk man­age­ment actions. The webcast is available at this link.

May 18, 2017
Financial Reporting

The International Accounting Standards Board (the Board) has today issued IFRS 17 Insurance Contracts. This first truly international IFRS Standard for insurance contracts will help investors and others better understand insurers’ risk exposure, profitability and financial position. In addition, the IASB has published for public consultation the proposed IFRS taxonomy update on insurance contracts. Please click here for further details and a link to register for the webcast.

May 18, 2017
Audit

Chartered Accountants Ireland has issued Technical Alert 01/2017 Revision to Technical Release 13/2016: Illustrative Auditor’s Report on the relevant elements of the Solvency and Financial Condition Report (SFCR) to provide additional and revised illustrative auditor reports in relation to the provision of assurance in relation to the relevant elements of the Solvency and Financial Condition Report (SFCR) of an insurance undertaking subject to Solvency II.    Technical Alert 01/2017 informs auditors that Chartered Accountants Ireland has added two illustrative auditor reports to those published at Appendix 2 of Technical Release 13/2016 Guidance for auditors of insurance undertakings. These additional auditor reports  are relevant for non-life insurance undertakings and have been added as Illustration 1A and Illustration 2A.  Illustration 1 and Illustration 2 at Appendix 2 of Technical Release 13/2016 have also been revised so as to relate to life insurance undertakings only.     The additional and revised illustrative auditor reports have been prepared to take account of paragraph 4 of Section 3 of the Central Bank of Ireland’s Feedback Statement to Consultation Paper CP104 – External Audit of Solvency II Regulatory Returns / Public Disclosures which provides that  “In respect of QRT S19.01.21 (Information on non-life insurance claims in the format of development triangles for the total non-life business), the claims triangles in this QRT includes a 10 year “look back” period. In recognition of the cost and practicalities associated with obtaining a reasonable assurance opinion on a 10 year “look back” period the Central Bank has decided to limit the “look back” period subject to audit in the first year to 2 years (i.e. for undertakings with a 31 December 2016-year end, the period ended 31 December 2014 will be the base reference period and as such will continue to be the first period audited for the purposes of the claims triangles for the following nine years).” Technical Alert 01/2017 presents the following illustrated auditor reports: Illustration 1 (Revised May 2017) – solo entity using the standard formula: An auditor’s report on relevant elements of the SFCR for the year ended 31 December 2016 (life insurance undertaking) Illustration 1A (Inserted May 2017) - solo entity using the standard formula: An auditor’s report on relevant elements of the SFCR for the year ended 31 December 2016 (non-life insurance undertaking) Illustration 2 (Revised May 2017) - solo entity using the partial or full internal model: An auditor’s report on relevant elements of the SFCR for the year ended 31 December 2016 (life insurance undertaking) Illustration 2A (Inserted May 2017) - solo entity using the partial or full internal model: An auditor’s report on relevant elements of the SFCR for the year ended 31 December 2016 (non-life insurance undertaking) You can read TA 01/2017 here: Technical Alert 01 2017 auditor reports on SFCR 12 May 2017  

May 12, 2017

The Property Services Regulatory Authority (PSRA) has issued revised accountant’s reports for licence renewal applications (PSRA/S35 – Renewal ABC where client accounts are held and PSRA/S35 - Renewal D where service charges and/or sinking fund contributions are paid into a "relevant account”) in accordance with the Property Services (Regulation) Act 2011 (Client Moneys) Regulations 2012 (“the Regulations”).  These reports replace the 2014 versions and should be used in making 2017 applications for renewals. The revised reports contain new appendices and some additional details elsewhere in the reports (these changes are highlighted in red on the revised reports).  New Appendix 7 (Renewal ABC) and Appendix 3 (Renewal D) These appendices are relevant where breaches of the Regulations have been identified and reported in appendix 1 or appendix 2 to the report.  The new appendices have been included for the purpose of the PSRA receiving details of the procedures that have been/will be put in place by the licensee to address the breaches.  We recommend that where licensees have outlined details of procedures, that have been or will be put in place to address matters outlined in appendix 1 or appendix 2, members do not include such details in appendix 7 (Renewal ABC)  or appendix 3 (Renewal D).  Instead we recommend that members state that the licensee will provide these details to the PSRA under separate cover. Members should note that, as set out in the updated accountant’s report, these new appendices are outside the scope of the opinion provided by the accountant. We consider, however, that the inclusion of the information sought within an appendix to the accountant’s report, allied to the requirement for the accountant to sign and date the appendices, represents a significant risk that the scope of work undertaken by the accountant could be overestimated and the accountant’s report therefore misinterpreted.  The accountant does not perform any work in relation to procedures identified by the licensee to address reported breaches and does not provide any assurance that those procedures are either appropriate to address the breaches or are properly implemented by the licensee.  We further recommend that if requested by the client to assist in identifying or implementing procedures, such work is undertaken as a separate engagement with separate engagement terms. Appendix 6 - Renewal ABC only Renewal ABC also contains a new appendix, appendix 6, which requests details of the person(s) mandated to withdraw funds from the client account and this information should be available from the client’s records.   Regulation 16(8)9d) requires this detail to be recorded in the bank account register which is part of the minimum accounting records required by the regulations. The following are available on the PSRA’s website: Click here for details of licence renewal process Click here for the accountant’s reports.  

May 11, 2017

The CRO have issued their regular newsletter.   The Public Office and the Registry of Friendly Societies are changing address. The CRO/RFS will move from Parnell Square to Bloom House, Gloucester Place Lower, Dublin 1 in late May.  Please click here to access the document.

May 10, 2017
Financial Reporting

The requirements outlined in the European Directive 2014/EU/94 on non-financial and diversity information came into force in January 2017. Many affected companies may find themselves wondering how they will be able to comply with the new requirements. Accountancy Europe is holding a lunch event on 12 July focusing on the practical implications of the new legislation.  Further details and a link to register can be found here.

May 10, 2017