Financial Reporting

This week Chartered Accountants Ireland was delighted to host the 28th Audit & Assurance Conference of the British Accounting & Finance Association (BAFA). This is a major event in the academic conference calendar which attracts academics from Ireland, the UK, and beyond.  The Institute welcomed some 90 leading academics specialising in the area of statutory audit and who received a number of academic research papers and case studies on statutory audit and the role of auditors. Plenary sessions addressed the future of audit and assurance, and the future of audit standard setting and included contributions from Big 6 audit partners, regulators, and standard setters. At the commencement of the 2 day conference, Dr Ilias G Basioudis, chairman of the Auditing Group of BAFA said: "This conference is taking place at a critical time for the auditing profession.  Over the next two days we shall be discussing major challenges facing audit and possible measures that might be considered to underpin public confidence in the profession and provide a greater understanding of the role of audit.  "Crucially, we shall also debate what more can done by auditors to provide assurance on company viability, recognising that this debate will require legislative change and input from audit practitioners, regulators and legislators.  The fact that this conference has attracted contributors from around the world also demonstrates the global nature of the auditing profession and the importance of identifying confidence building measures and initiatives that have global acceptance and are capable of global application." Click here for images from the conference. 

May 25, 2018
Financial Reporting

The FRC issues amendments to FRS 102 which includes those made to incorporate the new small entities and micro-entities regimes in the Republic of Ireland (the latter by amendments to FRS 105). The Financial Reporting Council (FRC) has completed a triennial review of FRS 102 and has published Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland - Triennial review 2017 - Incremental improvements and clarifications.  The amendments include those made to incorporate the new small entities and micro-entities regimes in the Republic of Ireland (the latter by amendments to FRS 105). These include, for example, the introduction of a new Appendix D to Section 1A in FRS 102 ‘Disclosure requirements for small entities in the Republic of Ireland’ and similarly a new Appendix B to Section 6 in FRS 105 ‘Company law disclosure requirements for micro-entities in the Republic of Ireland’. The amendments to incorporate the small entities and micro-entities regimes in the Republic of Ireland are effective for accounting periods beginning on or after 1 January 2017, with early application permitted provided the Companies (Accounting) Act 2017 is applied from the same date.  The FRC in announcing the completion of the triennial review and the issuing of the amendments document also confirmed the simplification of the measurement of directors’ loans to small entities, following the interim relief granted earlier this year and note the other principle amendments to FRS 102:  require fewer intangible assets to be separated from goodwill in a business combination; permit investment property rented to another group entity to be measured by reference to cost, rather than fair value; expand the circumstances in which a financial instrument may be measured at amortised cost, rather than fair value; and simplify the definition of a financial institution. In general these amendments are effective for accounting periods beginning on or after 1 January 2019, with early application available.  Read the full press release and access the amendments document here.  

Dec 15, 2017
Financial Reporting

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. 

Aug 24, 2017
Financial Reporting

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.

Aug 24, 2017
Financial Reporting

The Financial Reporting Council’s (FRC) consultation on amendments to its Guidance on the Strategic Report, recently published, encourages businesses to consider the interests of stakeholders.  These proposals reflect the FRC’s desire to improve the effectiveness of section 172 of the Companies Act 2006. The publication and further details can be found here.  

Aug 16, 2017
Financial Reporting

In the audit regulator’s second annual Developments in Audit report recently issued, the Financial Reporting Council (FRC) sets out evidence from its own and delegated audit quality reviews, thematic reviews and from audit committee and investor feedback.  Leadership of audit firms’ focus on, and investment in, improving audit quality, together with promoting a culture of continuous improvement, is beginning to pay off, particularly for audits of larger companies where the FRC has targeted improvement.

Aug 03, 2017
Financial Reporting

The IFRS Foun­da­tion has published a report with findings of a rep­u­ta­tion research study conducted between February and May 2017. The objective of the study was to learn about the perceived per­for­mance of the Foun­da­tion as regards rep­u­ta­tion at­trib­utes and whether it is felt that the Foun­da­tion meets its public interest mission and delivers on its ob­jec­tives. The report can be read in full here.

Aug 03, 2017
Financial Reporting

A paper entitled ‘The auditors’ response to the risks of material misstatement posted by estimates of expected credit losses under IFRS 9’ has been issued by the Global Public Policy Committee (a group which focuses on public policy issues for the profession and comprises representatives of the six largest accounting networks).  The paper notes that introduction of new requirements for the accounting of expected credit losses in IFRS 9 Financial Instruments will be a significant change to the financial reporting of banks when required in 2018.

Aug 03, 2017
Financial Reporting

The Trustees of the IFRS Foundation, responsible for the governance and oversight of the International Accounting Standards Board (IASB), have published the findings of independent research commissioned to better understand stakeholder attitudes towards the work of the IFRS Foundation and the IASB. The report can be viewed at this link.

Aug 03, 2017
Financial Reporting

The FRC has published a factsheet on non-financial reporting that provides an overview of the new regulations implementing the EU Directive on non-financial and diversity information. The regulations apply to companies and qualifying partnerships with financial years beginning on or after 1 January 2017.   Please click here for further details. 

Jul 27, 2017
Financial Reporting

The Financial Reporting Council (FRC) has issued a revision of ISA (UK) 250 Section A-Consideration of laws and regulations in an audit of financial statements, and conforming amendments to other ISAs (UK), effective for audits of financial statements for periods commencing on or after 15 December 2017. The FRC notes that the revisions, which are limited in scope, reflect changes made to the International Code of Ethics issued by the International Ethics Standards Board for Accountants (IESBA), and that these changes provide a framework to support reporting by accountants where they identify non-compliance with laws or regulations in the course of their work. The FRC has also issued revised ISA (UK) 330 The Auditor’s Responses to Assessed Risks, with conforming amendments to ISA (UK) 505 External Confirmations, also effective for audits of financial statements for periods commencing on or after 15 December 2017. The FRC note that the revisions have the effect of streamlining and integrating the guidance relating to obtaining bank reports for audit purposes into the auditing standards. Consequently, the FRC has withdrawn Practice Note 16 Bank reports for audit purposes in the United Kingdom from the date the revised standard is effective from. The FRC note that templates for requesting bank reports will remain available for use on the British Bankers’ Association website (now UK Finance), where an auditor wishes to obtain such a report. Read the full press release and access the revised standards and the standards with conforming amendments on the FRC website at the following link: - - http://www.frc.org.uk/News-and-Events/FRC-Press/Press/2017/July/Revisions-to-International-Standards-on-Auditing-(.aspx  

Jul 20, 2017
Financial Reporting

The Prudential Regulation Authority (PRA) notes that this policy statement (PS) provides feedback to responses to Consultation Paper (CP) 46/16 ‘IFRS 9: changes to reporting requirements’.  It sets out final rules intended to update regulatory reporting requirements, and expectations, in light of the introduction of International Financial Reporting Standard 9 (IFRS 9) from 1 January 2018. Read more at the following link: http://www.bankofengland.co.uk/pra/Pages/publications/ps/2017/ps1817.aspx

Jul 13, 2017