Technical resource centre

Developments of interest this week are outlined. ROI The CRO have issued their regular gazette. European Accountancy Europe has issued a report on the expert analysis of feedback on their 2017 Discussion Paper How to respond to assurance needs on non-financial information. The European Financial Reporting Advisory Group (EFRAG) has commissioned research on the expected economic impact of IFRS 17 Insurance Contracts and is seeking views from a wide range of interested parties. International The IFRS Foun­da­tion has published its Annual Report for 2017 - Financial reporting for the world economy. The report provides an overview of the IFRS Foun­da­tion’s ac­tiv­i­ties during the past year and sets out the Foun­da­tion’s and IASB’s pri­or­i­ties for 2018. The May 2018 IFRS Interpretations Committee Update (IFRIC Update) has been published. The International Accounting Standards Board (IASB) issued the revised Conceptual Framework for Financial Reporting in March 2018. They have now created a quiz to help test your knowledge and understanding of this document. The International Ethics Standards Board for Accountants (IESBA) seeks public comment by August 15, 2018 on its consultation paper, Professional Skepticism – Meeting Public Expectations.

Developments of interest this week are outlined. ROI IAASA has issued its review Brexit and its potential impact on Audit and Accountancy.  The document provides an overview of the various challenges and opportunities that Brexit may bring to the Authority and those entities within its remit. The CRO have issued their regular gazette. UK The Financial Reporting Council (FRC) has just issued Amendments to the Basis for Conclusions FRS 101 Reduced Disclosure Framework and the associated Feedback Statement to FRED 69 FRS 101 – 2017/18 cycle. European The European Financial Reporting Advisory Group (EFRAG) has com­mis­sioned an ex-ante impact analysis of the likely economic con­se­quences of im­ple­ment­ing IFRS 17 'Insurance Contracts'. International The International Accounting Standards (IASB) has released a podcast featuring Chair Hans Hooger­vorst, Vice-Chair Sue Lloyd, and education director Matt Tilling to discuss the de­lib­er­a­tions at the April 2018 IASB meeting. The International Fed­er­a­tion of Ac­coun­tants (IFAC) has published the results of a survey among its members as International Standards: 2017 Global Status Report.   .  

Developments of interest this week are outlined. ROI The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2018 was published this week and will progress in due course through the houses of the Oireachtas.  The Bill transposes the 4th EU AML Directive.     IAASA has published its Annual Audit Programme and Activity ('AAPA') Report. This report provides details on activities in relation to oversight of statutory audit in order to achieve the mission of supervising and promoting high quality auditing in the public interest. The CRO have issued their regular gazette. UK The April 2018 issue of the Prudential Regulatory Digest has just been published which discusses the business plan and the independence of PRA functions. International A first-of-its kind International Federation of Accountants (IFAC) report that assesses and publically reports on the global status of the adoption of international standards—International Standards: 2017 Global Status Report has recently been issued. The International Financial Reporting Standards (IFRS) Foundation April 2018 news summary has just been issued which includes International Accounting Standards Board (IASB) re-appointments and a new webcast exploring Conceptual Frameworks. The April 2018 IASB summary has just been issued and the work plan updated.    

Developments of interest this week are outlined. ROI The CRO have issued their regular gazette. European The European Se­cu­ri­ties and Markets Authority (ESMA) has published further extracts from its con­fi­den­tial database of en­force­ment decisions taken by European national enforcers. EFRAG has published its draft comment letter in response to the IASB's Exposure Draft ED/2018/1 Accounting Policy Changes (Proposed amendments to IAS 8) (the 'ED') and seeks constituents' views on the proposals. Comments on the draft comment letter are requested by 13 July 2018, by close of business. CSR Europe and GRI, in collaboration with Accountancy Europe, collected information on Member State implementation to enable dialogue on the topic across Europe and the result is a comprehensive overview of how Member States are implementing the Directive. International Sue Lloyd, Vice-Chair of the International Accounting Standards Board, discusses IFRS 9 and explains the Board’s thinking behind the requirements for equity instruments in the Standard. The IFRS Foundation has released the first three of 35 stand-alone modules designed to provide support to anyone learning about, applying or reading financial statements prepared using the IFRS for SMEs Standard. The IFRS Foun­da­tion Mon­i­tor­ing Board (MB), re­spon­si­ble for the oversight of the IFRS Foun­da­tion, has published its 2018-2019 work plan.      

Developments of interest this week are outlined. ROI On 9th April 2018 the Property Services Regulatory Authority (PSRA) issued revised application forms 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 new renewal forms replace the 2017 versions and should be used in making 2018 applications for renewals. The Central Bank of Ireland has issued its Quarterly Bulletin for 2018 which contains its latest assessment of the Irish and euro area economies The CRO have issued their regular gazette. UK Responding to the Government’s announcement of an independent review of the Financial Reporting Council’s (FRC) operations, Sir Win Bischoff, Chair of the FRC said: “FRC welcomes independent review of its role and powers to be led by Sir John Kingman…” The FRC is calling on asset managers, pension funds, sell-side analysts, ratings agencies, proxy advisors and sovereign wealth funds to be representatives of the investor community for a new Investor Advisory Group (IAG). The Financial Reporting Lab's Q1 Newsletter has just been issued. European The European Financial Reporting Advisory Group (EFRAG) is inviting users of the financial statements of insurers to express their views on this change to IFRS financial reporting. IFRS 17 Insurance Contracts is intended to improve the information that is available to users of financial statements of insurance companies and financial conglomerates. Expressions of interest in participating in this outreach are requested by close of business on Friday 11 May 2018. International The International Public Sector Accounting Standards Board (IPSASB) has published an exposure draft 'Im­prove­ments to IPSAS, 2018', which sets out proposed amend­ments to International Public Sector Accounting Standards (IPSAS) to address issues raised by stake­hold­ers and to converge with amend­ments to IFRSs. The IFRS Foundation’s annual conference in Europe will be held at the InterContinental Hotel Frankfurt, Germany on Thursday 28 and Friday 29 June 2018 which brings together the International Accounting Standards Board Members and staff with other leaders in financial reporting from the private sector and regulatory bodies.      

Developments of interest this week are outlined. ROI The Accounting for Sustainability (A4S) has published its latest Essential Guide on Strategic Planning, Budgeting and Forecasting, which is designed specifically to help finance teams integrate sustainability into the processes used to manage performance and shape corporate strategy. On 9th April 2018 the Property Services Regulatory Authority (PSRA) issued revised application forms 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 new renewal forms replace the 2017 versions and should be used in making 2018 applications for renewals. Chartered Accountants Ireland has recently published Technical Alert 01/2018 Illustrative auditor’s report for the audit of financial statements prepared in accordance with the Micro Companies Regime of Companies Act 2014 and FRS 105.   Chartered Accountants Ireland has recently published Technical Alert 02/2018 Illustrative auditor’s reports on the relevant elements of the Solvency and Financial Condition Report (SFCR) for periods beginning on or after 17 June 2016.This Technical Alert provides illustrative auditor’s reports on the relevant elements of the SFCR, performed in accordance with ISAs (Ireland), the new Irish auditing framework and should be read in conjunction with Section 3 of Technical Alert 13 2016, Guidance for auditors of insurance undertakings in Ireland.     The CRO have issued their regular gazette. UK The Financial Reporting Council (FRC) has announced plans to enhance its monitoring of the six largest audit firms to avoid systematic deficiencies within firms’ networks, disruption in the provision of statutory audit services and instability in the financial sector. International The March 2018 IFRS for SMEs Update has been issued which includes information on standard modules and translations. The International Ethics Standards Board for Accountants (IESBA ) has released a completely rewritten Code of Ethics for Professional Accountants that is easier to navigate, use and enforce. Beyond the new structure, the Code brings together key ethics advances over the past four years, and is clearer about how accountants should deal with ethics and independence issues.    

Developments of interest this week are outlined. ROI Chartered Accountants Ireland has published Technical Alert 01/2018 Illustrative auditor’s report for the audit of financial statements prepared in accordance with the Micro Companies Regime of Companies Act 2014 and FRS 105.   Chartered Accountants Ireland has published Technical Alert 02/2018 Illustrative auditor’s reports on the relevant elements of the Solvency and Financial Condition Report (SFCR) for periods beginning on or after 17 June 2016. This Technical Alert provides illustrative auditor’s reports on the relevant elements of the SFCR, performed in accordance with ISAs (Ireland), the new Irish auditing framework and should be read in conjunction with Section 3 of Technical Alert 13/2016, Guidance for auditors of insurance undertakings in Ireland. The CRO have issued their regular gazette. UK The Financial Reporting Lab (the Lab) is calling for listed companies, investors/analysts, technology experts and those with interest in the potential uses of Artificial Intelligence in the production and consumption of corporate reporting to participate in the next phase of their Digital Future project. Europe The European Se­cu­ri­ties and Markets Authority (ESMA) has published a report on the activities of accounting enforcers and their findings within the EU in 2017.    The European Union has published a Commission Regulation endorsing IFRIC 22 Foreign Currency Transactions and Advance Consideration. The Amendments are effective for annual periods beginning on or after 1 January 2018. International The International Accounting Standards Board (IASB) has published its revised 'Conceptual Framework for Financial Reporting' which includes revised de­f­i­n­i­tions of an asset and a liability as well as new guidance on mea­sure­ment and dere­cog­ni­tion, pre­sen­ta­tion and dis­clo­sure.      

Chartered Accountants Ireland are delighted to announce the release of an ethics quick reference guide for members entitled “Five Fundamental Principles, Five Practical Steps”. Níall Fitzgerald, Head of Ethics and Governance, comments; “In addition to serving as a useful reminder of the five fundamental principles of the Institute’s code of ethics,  this one pager provides practical steps and tools to assist members prepare for the day they have to address an ethical dilemma”. The Institute’s Ethics and Governance Committee were delighted to support this initiative of President Shauna Greely, and see the guide as a unique and valuable tool that members can keep close to hand. It will serve as an easy to use aide memoir applicable to their professional lives. The guide is available to download below as a multi-page A4 document or alternatively there is a one-page folding hard copy available by contacting us. The guide will also feature as a ‘cut out’ in the June edition of Accountancy Ireland. Ethics quick reference guide  

Technical Alert 02/2018 published to provide assistance to auditors of insurance undertakings Chartered Accountants Ireland has published Technical Alert 02/2018 Illustrative auditor’s reports on the relevant elements of the Solvency and Financial Condition Report (SFCR) for periods beginning on or after 17 June 2016.   This Technical Alert provides illustrative auditor’s reports on the relevant elements of the SFCR, performed in accordance with ISAs (Ireland), the new Irish auditing framework.   The following illustrative auditor’s reports are included in Technical Alert 02/2018: An auditor’s report on relevant elements of the SFCR for the year ended [insert date] (life insurance undertaking) - such period beginning on or after 17 June 2016 (solo entity using the standard formula) An auditor’s report on relevant elements of the SFCR for the year ended [insert date] (non-life insurance undertaking) – such period beginning on or after 17 June 2016 (solo entity using the standard formula) An auditor’s report on relevant elements of the SFCR for the year ended [insert date] (life insurance undertaking) - such period beginning on or after 17 June 2016 (solo entity using the partial or full internal model) An auditor’s report on relevant elements of the SFCR for the year ended [insert date] (non-life insurance undertaking) – such period beginning on or after 17 June 2016 (solo entity using the partial or full internal model) An auditor’s report on relevant elements of the SFCR for the year ended [insert date] – such period beginning on or after 17 June 2016 (group insurance undertaking using the standard formula) This Technical Alert should be read in conjunction with Section 3 of Technical Release 13/2016 Guidance for auditors of insurance undertakings in Ireland.   Technical Release 13/2016 gives guidance to auditors engaged to provide a reasonable assurance opinion in relation to the relevant elements of the Solvency and Financial Condition Report (‘SFCR’) of an insurance undertaking pursuant to Regulation 37 of the European Union (Insurance and Reinsurance) Regulations 2015 (SI 485 of 2015) (‘the 2015 Regulations’).   Technical Alert 02/2018 is available to read here.