Last week the Scottish Finance Secretary, Shona Robison, delivered the draft Scottish Budget 2025/26. Chapter 2 of this Budget publication sets out the Scottish Government’s tax policy and strategy. Scotland’s Tax Strategy: Building on our Tax Principles was also published last week. The key tax devolved to Scotland is income tax. The draft Budget announced that for 2025/26, the starter rate band will increase by 22.6 percent and the basic rate band will increase by 6.6 percent meaning that the thresholds for paying both the basic and intermediate rates of tax will increase by 3.5 percent, both of which are above inflation. The higher, advanced, and top rate thresholds will be frozen to the end of the current parliamentary term in Spring 2026. Our fellow Professional Body ICAS has been looking at these measures in more detail. The Scottish Fiscal Commission has also published its report Scotland’s Economic and Fiscal Forecasts – December 2024 along with a one page graphic of key figures and a summary document. Background information is also available including spreadsheets with data for tables and charts. The following documents were also published: Scottish tax ready reckoners, Scottish Income Tax 2025/2026: factsheet, Scottish Budget 2025/26: pre-budget engagement summary, and Climate Xchange: International evidence on fiscal levers to deliver reductions in greenhouse gas emissions.

The Irish Corporate Governance Code represents a progressive approach to ensuring best practice among companies listed on Euronext Dublin and enhances the reputation of ‘Ireland Inc’ globally. Níall Fitzgerald and Louise Gorman explain why Did you know that Ireland hosts one of the most extensive corporate governance infrastructures in Europe?  In Ireland, there are specific governance codes applicable to listed companies, charities, state bodies, financial services institutions, funds and sports organisations.  This is in addition to other entity-specific requirements that may also apply – charities may have to comply with multiple governance requirements as a condition of receiving state funding, for example.  Yet, until recently, Irish listed companies have relied on the best practice principles of the UK Corporate Governance Code (UK Code).  It is therefore worth considering the extent to which the recent publication of the Irish Corporate Governance Code 2024 (Irish Code) presents a new opportunity to tailor best practice in corporate governance to Irish listed companies. The Irish Code will apply initially to a small number of companies listed on Euronext Dublin, the Irish Stock Exchange, for financial years commencing 1 January 2025. Those dual-listed in both Ireland and the UK have the option to either follow the Irish Code or the UK Code in respect of their Irish listing.  The introduction of the Irish Corporate Governance Code is nonetheless significant.  Four years on from the UK’s departure from the European Union (EU), the Irish Code signals that the time has come for Irish companies to follow a path aligned with EU policy and practice, while remaining loyal to the overarching best practice principles established by the UK. It also reflects welcome proactivity in protecting and enhancing the reputation of ‘Ireland Inc’ on the global stage.  Historically, many corporate governance codes and laws internationally have been introduced in response to corporate failings.  By contrast, the Irish Code has emerged out of a desire to ensure that best practice is suitably tailored to the specific circumstances of Irish listed companies.  This comes at no cost to our competitiveness. We retain our well-established ‘comply or explain’ principles-based approach, while also remaining globally connected via our EU membership. Further, we host a US Public Company Accounting Oversight Board presence relating to both Irish companies listed on US Stock Exchanges and US listed companies operating in Ireland. What does this mean for Irish companies? Irish companies already complying with the UK Code will, for the most part, maintain their existing governance practices. They will need to address some specific Irish Code requirements, however. The extent of any differences here will vary depending on each company’s governance policies and structures.  Some companies may find the adjustment process less challenging, particularly those already preparing for the new UK Code applying from 1 January 2025 (apart from Provision 29, which applies from 1 January 2026).  The UK Code served as the basis for developing the Irish Code. Euronext Dublin has made changes only where necessary to ensure proportionality and relevance.  To enhance the principle-based approach, Euronext Dublin has also taken the decision not to include some of the more prescriptive requirements driven largely by the UK regulatory environment.  Maintaining close alignment makes sense as the UK Code is highly regarded and sets a high standard for corporate governance that is emulated internationally.  Our table illustrates some of the key differences between the Irish and the UK Code. Some of these differences, and what they mean for Irish companies, are further explained below. Internal control and risk management: A significant new requirement in the UK Code is included within Provision 29. This requires boards to provide a “declaration of effectiveness” on internal controls, identifying any ineffective controls as of the balance sheet date. Compliance will require boards to establish an independent framework to monitor and assess their internal control and risk management systems. The Irish Code also requires boards to review and report on the effectiveness of these systems, but it is less detailed, not requiring specific declarations or publication of ineffective controls at the balance sheet date. Audit committees: The UK Code requires audit committees to adhere to the Financial Reporting Council’s (FRC) “Audit Committees and the External Audit: Minimum Standard.” In contrast, the Irish Code outlines the roles and responsibilities of audit committees, which are consistent with Companies Act 2014 (Section 167) requirements, without reference to an additional standard, specifying that their work should be detailed in the annual report. Maintaining the principle-based approach in this area is practical, as best practices for audit committees are evolving in accordance with emerging recommendations on audit tendering oversight and sustainability reporting coming from bodies such as the FRC and Accountancy Europe. Less prescriptive and more proportionate: The Irish Code retains core principles, such as workforce engagement, but leaves it to boards to choose the most appropriate methods for their companies’ needs. This facilitates greater flexibility relative to equivalent parts of the UK Code which specify detailed considerations or criteria. The Irish Code aligns some provisions with those in smaller EU capital markets, enabling a proportionate governance approach. For example, while one of the criteria for assessing non-executive directors’ independence in the UK Code requires a five-year employee cooling-off period to be considered, the Irish Code sets this at three years, balancing market size and available talent. Regulatory oversight and enforcement: Like the UK, the Irish Code relies on the market mechanism. It aims to promote high standards of integrity, transparency and accountability. Investors and stakeholders can evaluate disclosures and make comparisons across companies in assessing corporate governance quality. These assessments then inform decisions and actions taken in the markets, such as the decision to buy or sell shares. The implication of this in the UK experience is that the FRC has no sanctioning authority in instances of weak compliance; sanctioning is left to the market mechanism. The FRC does, however, conduct thematic reviews to guide improvements in corporate reporting and governance. Ireland currently has no equivalent body for corporate governance assessment. However, the Irish Auditing and Accounting Supervisory Authority reviews annual reports for EU Transparency Directive compliance, without a specific corporate governance focus. While sanctions do not apply for weak governance compliance, Euronext Dublin can impose sanctions or suspend listings for violations of the listing rules. The Financial Conduct Authority in the UK has a similar approach.   The Irish Code and the UK Code: key differences Workforce engagement  The Irish Code requires boards to explain workforce engagement methods and their effectiveness, without mandating a specific method as in the UK Code. Additionally, it requires a board review of policies for raising concerns. This requirement aligns with the OECD Corporate Governance Principles 2023.  Threshold for addressing shareholder dissent The threshold for consulting with shareholders on a dissenting vote against a board recommendation is set at 25 percent under the Irish Code (20% in the UK Code). Unlike the UK, there is no requirement to provide a six-month shareholder update on the consultation, but it should be addressed in the next annual report. Non-executive director independence  When considering the independence of a non-executive director (NED), the criteria relating to previous employment by the company is whether they have been an employee of the company within the last three years (compared to five years in the UK Code). Board appointments The Irish Code does not include the UK Code restriction on the number of appointments a non-executive director has in a FTSE 100 or other significant undertaking. The Irish Code requires all commitments to be considered when determining whether the NED has the capacity to fully commit to the board. Company Secretary The Irish Code further elaborates on the role of the Company Secretary in ensuring a good information flow within the board, its committees and between management and non-executive directors – recording accurate minutes, facilitating induction and assisting with professional development of non-executive directors. Board evaluation The Irish Code replaces the UK Code reference to FTSE 350 companies with “companies with a market capitalisation in excess of €750 million” in the requirement to conduct an external board evaluation at least once every three years. Board skills and expertise The Irish Code includes an additional requirement for the nomination committee to use the results of a board evaluation to identify the board’s skills, knowledge and expertise requirements. This should be reflected in board succession plans, professional development plans and steps taken to ensure the board has access to the skills, knowledge and expertise it requires. This requirement is consistent with good governance practices in other EU countries, e.g. the 2020 Belgium Code on Corporate Governance. Diversity and inclusion Whereas the UK Code includes reference to UK equality legislation for diversity characteristics, the Irish Code requires companies to have a diversity and inclusion policy regarding gender and other aspects of diversity of relevance to the company and includes measurable objectives for implementing such a policy. The Irish Code requires this policy to be reviewed annually. Audit Committee To ensure consistency with the Companies Act 2014, the requirement for one member of the Audit Committee to have “recent and relevant financial experience” is changed to “competence in accounting or auditing”. Reference to “financial reporting process” is replaced with “corporate reporting process” to better reflect the audit committee’s role in monitoring financial and non-financial reporting, e.g. sustainability reporting. Reference to the UK specific Financial Reporting Council guidance on “Audit Committees and the External Audit: Minimum Standard” is also removed. Internal controls and risk management systems The Irish Code does not include the UK Code provision for the board to include a declaration of effectiveness of material controls, but the requirement to monitor the company’s internal control and risk management systems and review their effectiveness remains.  Remuneration Under the Irish Code, share awards in long-term incentive plans must vest over at least three years, unlike the UK’s five-year minimum. Malus and clawback provisions should be described generally in annual reports, and executive pensions require thoughtful comparison to workforce pensions, with less prescriptive rules than the UK Code. What next for the Irish Code?  Euronext Dublin is in the process of revising the Listing Rules to give effect to the new Irish Code and is further streamlining the requirements.  An Irish Corporate Governance Panel will be established, with responsibility for reviewing and advising on changes to the Irish Code in the context of the evolving corporate governance landscape in Ireland, the UK and Europe alongside other factors.  What impact the Irish Code will have remains to be seen. It represents a sensible approach to building on the reputation and quality of the UK Code, and while there are some differences between the Irish and UK Code, they are mostly aligned.  We have been careful to note that the Irish Code initially applies only to a small number of companies, so one may be forgiven for questioning its true significance. Nonetheless, key issues on the European regulatory horizon suggest that it may mark the start of a greater departure from the UK’s approach to governance.  The recent transposition of the Corporate Sustainability Reporting Directive into Irish law provides another example of this as the CSRD’s required disclosures on governance introduce an EU influence into governance in Irish companies.  Future revisions to the Irish Code may further reflect this newly established autonomy in governance in Ireland, particularly as we adopt the Corporate Sustainability Due Diligence Directive and other directives the European Commission will inevitably introduce over time.  Currently, best practice principles for Irish private companies are limited to voluntarily following the UK’s Wates Corporate Governance Principles for Large Private Companies. Just as the UK Code has influenced these principles, the Irish Code may provide a basis for further extension to large private entities.  There is also a strong argument that any evolution in corporate governance guidance deserves due consideration, particularly as boards deal with increasing risks and opportunities from environmental, social, economic and technological developments.  As it happens, there are no immediate plans to draft guidance to support the Irish Code, and the FRC’s Corporate Governance Code Guidance should, in the short term, be sufficient to fill the gap.  Experts in the area have long noted that attention tends be paid to corporate governance only when a failure occurs.  Given the level of public scrutiny such failures attract, and the associated reputational costs borne by board members, any Irish listed company director should be asking themselves if they can really afford not to pay attention to the new Irish Corporate Governance Code. Níall Fitzgerald, FCA, is Head of Ethics and Governance at Chartered Accountants Ireland Louise Gorman is Assistant Professor at Trinity Business School

Earlier today HMRC advised us that some of its telephone helplines are currently experiencing a reduced level of service due to a technical issue. HMRC first made us aware of this late last week. HMRC is working urgently to resolve this. Taxpayers and agents can continue to use online services, where relevant, which we have been advised are working as normal.

COP29 concluded in late November with uneasy agreement on the controversial Baku Finance Goal pledging $300 billion in climate funding to developing countries, writes Susan Rossney COP29, the global climate summit, concluded in the early hours of 24 November in Baku, Azerbaijan. There were some positive developments, such as the deal reached on Article 6 of the Paris Agreement to finally allow countries to trade carbon credits with each other. Most significantly, though, for this ‘climate COP’, was the final agreement called the Baku Finance Goal. In 2009, at COP15 in Copenhagen, parties agreed a collective goal for developed nations to provide $100 billion annually in climate financing to developing countries. The new goal agreed at COP29 ups the annual financial target to $300 billion, to be funded from public sources, with provision for the shortfall to be made up of funding from private sources. To say opinion was divided on this new goal is an understatement. While some parties are cautiously optimistic that the agreement would at least keep the core principles of the Paris Agreement alive, many more were outraged by how much the new goal falls short of what is actually needed. It is generally agreed that $1 trillion per year by 2030 (rising to $1.3tn per year by 2035) is needed to help developing countries build resilience, prepare for disasters and cut emissions of planet-warming greenhouse gases. While this figure is enormous, it’s worth noting for context that $2.4 trillion was spent on weapons in 2023, and at least $1 trillion was spent in 2022 on subsidies to keep fossil fuel prices artificially low. Also worth noting is that the provision of financial support to developing countries for climate action serves both a moral and economic purpose for wealthier countries. The chaos caused by the climate and biodiversity crises to societies and economies is not limited to developing countries alone. This was demonstrated most recently by the 224 lives lost in Spain as a result of flooding linked to rising temperatures in the Mediterranean Sea. On 28 November, Spain’s government approved a new “paid climate leave” entitlement of up to four days to allow workers take time off if unable to travel to their place of work in the event of official warnings of extreme weather conditions. The Institute for Economics and Peace further predicts that one billion people face being displaced within 30 years due to the climate crisis, with huge impacts for both the developed and developing worlds. COP30 will take place in Belém, Brazil in 2025. Its focus will centre on efforts by each country to reduce national emissions and adapt to the impacts of climate change (the so-called ‘NDCs’ or ‘nationally determined contributions’). It remains to be seen if COP30 will achieve what G20 leaders have said it should – i.e. to be “our last chance to avoid an irreversible rupture in the climate system”. Susan Rossney is Sustainability Advocacy Manager at Chartered Accountants Ireland. Check out Chartered Accountants Ireland’s sustainability centre for signposts to a variety of resources available to businesses. Also, subscribe to the Institute’s fortnightly Technical Round Up and weekly Sustainability/ESG Bulletins, both in the weekly Chartered Accountants Ireland newsletter, and on LinkedIn.

Comments from Chartered Accountants Ireland were included in a recent Sunday Independent article on the operation of benefit-in-kind on staff benefits. The Institute’s Head of Tax, Gearóid O’Sullivan was recently featured in the Sunday Independent answering readers’ questions on the rent tax credit and dividing land that is jointly owned.

Revenue has published the following new VAT manuals:  VAT notes for guidance following Finance Act 2024, and VAT treatment of share transactions and trading platforms. In addition, the following manuals have also been updated:  VAT Treatment of Factoring and Invoice Discounting, VAT and Solicitors includes a new paragraph (4) on legal fees relating to lenders, and VAT treatment of stock exchange fees has been updated to provide guidance on the current regime.

Section 125A SDCA 1999 provides for a stamp duty to be levied on certain health insurance contracts entered into between health insurers and their customers. Revenue has updated the Stamp Duty Manual which provides guidance on the levy on authorised insurers. The updated manual now includes the rates of the levy for accounting periods commencing on or after 1 April 2025, as provided for by section 10 of the Health Insurance (Amendment) and Health (Provision of Menopause Products) Act 2024, which was enacted on 11 November 2024.  The following stamp duty manuals have also been updated to reflect amendments to Part 9 SDCA 1999 contained in Finance Act 2024:  Part 9: Levies Part 9 - Section 126AB - Further levy on certain financial institutions

Revenue has published a new Tax and Duty Manual which provides guidance on obtaining a corporation tax deduction for stock exchange listing expenditure. With effect from 1 January 2025, new section 81D TCA 1997 provides corporation tax relief for expenditure of up to €1 million incurred by a company on listing its shares for the first time on an EEA stock exchange. According to the manual, the admission to trading of the company’s shares must take place on or after 1 January 2025 and on or before 31 December 2029.   

Revenue has updated the Tax and Duty Manual which provides guidance on pre-letting expenditure in respect of vacant residential premises. The updated manual now reflects the extension to 31 December 2027 for the deduction of expenses incurred on a vacant residential property against rental income from those premises under section 97A(2) TCA 1997.  

The Central Statistics Office (CSO) has published the Quarterly National Accounts for the third quarter of 2024. Modified Domestic Demand increased by 1.3 percent relative to the previous quarter and was up 4.1 percent on an annual basis. Gross domestic product (GDP) grew by 3.5 percent in Q3 2024 and increased by 2.9 percent on an annual basis.  Commenting on the figures, the Minister for Finance, Jack Chambers TD, said: “I am pleased to see continued strength in the domestic economy in the third quarter of 2024. Modified Domestic Demand – my preferred metric of Ireland’s economic performance – grew by 1.3 per cent on a quarterly basis and recorded strong annual growth of over 4 per cent. Importantly, growth on an annual basis has been broad based in nature with both consumer spending (1.7 per cent) and modified investment (10.4 per cent) making a positive contribution. This solid growth is consistent with the strength of our labour market and the robust exchequer figures released yesterday. Taken together these metrics all demonstrate that the economy has performed strongly this year. While today’s figures are encouraging they are, of course, backward looking. Indeed, the economic outlook has become increasingly uncertain and risks are now clearly titled to the downside with the most pressing risks external in nature. As a small, open and highly globalised economy, Ireland is particularly vulnerable to any deterioration in the external environment.  Put simply, these are risks that we cannot control directly – we must instead focus on managing what is in our control. In particular, we must continue to build up our fiscal buffers, invest in our people and our infrastructure, and ensure the economy remains competitive. This will help ensure that we are in the best position possible to address future challenges.” 

With November being the most important month of the year for tax receipts, the Minister for Finance noted that the recent November Exchequer figures indicate that tax revenues continue to perform well. November is the month in which the largest payments are made for corporation tax, as well as the last VAT-due month of the year. Total tax receipts for November amounted to €22.8 billion, €7.2 billion (or 46.1 percent) higher than November 2023.   November is also the deadline for self-assessed income tax. Income tax receipts in November were €4.7 billion, only €60 million (or 1.3 percent) ahead of November last year. However, this relatively weak performance year-on-year was offset by continued growth in PAYE receipts. Overall, income tax receipts were €1.9 billion, or 6.4 percent, ahead of November 2023.   Corporation tax receipts in November amounted to €13.7 billion, which is €7.4 billion (or 116.8 percent) higher than November last year. The bulk of the increase is due to receipts arising from the Apple tax case ruling in September. On a cumulative basis, corporation tax receipts of €35.0 billion are now ahead of last year by €13.0 billion (or 59.1 percent).  VAT receipts to end-November are €3.1 billion, 1.3 billion (or 6.4 percent) up on the same period last year. The Exchequer surplus stood at €13.8 billion, to end-November, an increase of €8.4 billion in comparison with the same period last year, reflecting the Apple tax case revenues received in November. Commenting on the figures, the Minister for Finance, Jack Chambers TD, said:  “The Exchequer returns to end-November show most tax heads have demonstrated steady growth across the year. The growth in income tax and VAT receipts demonstrates the strength of our economy and labour market, but our public finances remain exposed to highly volatile corporation tax receipts. This revenue stream is also skewed by the receipt of around two-thirds of the revenue arising from the CJEU ruling of September 10th.”   

Amendments to FRS 102: are you ready for change? Aimed at improving financial reporting practices, the latest FRS 102 amendments introduce important changes finance teams must begin preparing for today. Emer Fitzpatrick and Cayetano Bautista III delve into the details. FRS 102 is the predominant accounting standard used by small and medium businesses (SMEs) and private family businesses across the island of Ireland. It was introduced in 2013, applying to accounting periods commencing on or after 1 January 2015, with early adoption permitted. The UK Financial Reporting Council (FRC) is the standard setter for FRS 102 and performs periodic reviews of the accounting standard, at least every five years. The aim of these reviews is to take account of changes in global accounting standards – such as changes to the International Accounting Standards Board (IASB) accounting standards, and to respond to specific issues as they arise, such as regulatory decisions and stakeholder feedback. Amendments are then developed and proposed after feedback has been sought from the relevant stakeholders. The first periodic review of FRS 102 was completed in December 2017, coming into effect on 1 January 2019, and the FRC recently completed another periodic review in March 2024. This most recent review has taken several years to complete due to the need for extensive consultations with stakeholders. The effective date of the amendments arising from this review will be applicable for accounting periods on or after 1 January 2026. (Earlier effective dates apply to new disclosures about supplier finance arrangements, starting from 1 January 2025, with early application permitted). Early application is, however, permitted where all amendments are applied simultaneously. So, what are the key amendments arising from this review, and how can you prepare for these changes? FRS 102 review: key amendments Single lease accounting approach for lessees (Section 20) Under the current model, lessees classify leases as either finance or operating, depending on whether the lease transfers substantially all the risks and rewards of ownership from the lessor to the lessee. This approach is similar to the model used under old Irish Generally Accepted Accounting Principles (GAAP) and IAS 17 – “Leases”. The FRS 102 amendments will largely align Section 20 with IFRS 16 – “Leases”, eliminating the distinction between finance and operating leases for lessees. This will require lessees to recognise right-of-use assets (ROU) and lease liabilities on the Statement of Financial Position (SOFP) for all leases, apart from short-term leases and low-value assets. Subsequently, the ROU is depreciated over the lease term on a straight-line basis, while the lease liabilities are amortised using the effective interest method, which results in a frontloading of the lease expense, reflecting the underlying financing nature of leases. Let’s illustrate this with an example. Lease term   3 years  Annual payment payable at the end of the year  €50,000  Discount rate (annual)  5% SOFP – lease commencement (rounded to the nearest €000)   ROU / lease liability   €136,000*   *The initial ROU/lease liability is for illustrative purposes only. These should be calculated using the following formula: Present value (PV) of lease payments not paid at that date and discounted using the appropriate discount rate. [PV of €50,000 × 3 years at 5%] In most cases, the ROU and lease liability will be equal to each other on the inception of the lease. Statement of Comprehensive Income (SOCI) – Year 1   ROU depreciation (operating profit)  €45,333 [€136,000 ÷ 3]  Interest on lease liability (finance cost)  €6,800 [€136,000 × 5%] SOFP – Year -1    ROU   €90,667 [€136,000 – €45,333]  Lease liability  €92,800 [€136,000 – €50,000 + €6,800] The amendments provide guidance on what constitutes a lease, how to determine the lease term, how to account for modifications and remeasurements and other practical expedients. It is important not to underestimate the complexity of this new lease model. Consideration must be given to several factors, such as whether an arrangement meets the definition of a lease and how to calculate an appropriate discount rate for every lease. Five-step revenue recognition model (Section 23) The FRS 102 amendments also introduce a comprehensive five-step model for revenue recognition aligning Section 23 of FRS 102 with IFRS 15 – “Revenue from contracts with customers.” The five steps are as follows: Identify the contract(s) with a customer. Identify the performance obligations in the contract. Determine the transaction price. Allocate the transaction price to the performance obligations in the contract. Recognise revenue when (or as) the entity satisfies a performance obligation. The core principle is to align revenue recognition with the transfer of control of goods or services to customers which may either be over time or at a point in time. This also aligns revenue recognition with the contractual terms in relation to the enforceable rights and obligations of the customer and supplier. The five-step model aims to address the challenges in accounting for bundled goods and services by introducing the concept of allocating the consideration from the customer to the separate and distinct performance obligations, representing the promised goods or services within the contract. The amendments also provide guidance on several topics, such as combining two or more contracts entered into, at or near the same time with the same customers, contract modifications and some practical expedients. It is important to note that the new five-step revenue recognition model could alter the timing of revenue recognition, especially for complex contracts with bundled goods and variable consideration. Other important amendments to note The amendments to FRS 102 also contain several incremental improvements and clarifications including, but not limited to, the following: IAS 39 option removal: Entities not already applying IAS 39 recognition and measurement principles for financial instruments can no longer adopt such policies under Section 11 and 12 of FRS 102. Supplier financing: Section 7 of FRS 102 will now require additional disclosures about supplier finance arrangements and their impact on SOFP and cash flows. Fair Value measurement: A new Section 2A (Fair Value Measurement) replaces the Appendix to Section 2 of FRS 102, incorporating the principles of IFRS 13 – “Fair value measurement.” Going concern disclosures: Section 3 of FRS 102 has new requirements for management to affirm consideration of future information and to disclose significant judgments on going concerns. Business combinations: Section 19 of FRS 102 has been updated to include guidance on the identification of an acquirer in a business combination similar to the principles of IFRS 3 – “Business combinations.” Share based payments (SBP): Section 26 of FRS 102 includes enhanced guidance on accounting for vesting conditions, fair value determination and SBPs with cash alternatives. Uncertain tax treatments: Section 29 of FRS 102 includes guidance for uncertain tax treatments, which aligns with IFRIC 23 – “Uncertainty over Income Tax Treatments” principles. FRS 102 amendments: next steps We have outlined some practical steps you can take to help prepare for these changes. Assess the impact on your financial statements and business metrics As discussed above, the changes to Leases and Revenue may have a significant impact on financial statements (FS). The new lease accounting model may affect your company’s financial metrics or key performance indicators (KPIs) such as EBITDA, net profit and net debt, to name a few. Not only will the changes to KPIs have an impact on the FS but they may also impact your lending arrangements or covenants. For the new revenue model, consideration must be given to how any potential changes to the timing of revenue recognition may impact both reported and forecasted revenue and profits. You will also need to consider how the other amendments listed above will impact the FS and whether you have the necessary in-house expertise on your finance team to carry out the work required to comply with these amendments. Increased disclosure will be required in the notes to the FS, and this may include some new and previously undisclosed information. Understanding these requirements will help guide your accounting processes and the preparation of the FS. Being well-prepared will ensure compliance and transparency in your financial reporting. Consider whether operational changes are required The new lease accounting and revenue recognition models are closely tied to contractual terms and conditions. This will require additional information and financial modelling from contracts. An early assessment of your current accounting processes, systems and controls is essential to identify the necessary operational changes. Other considerations, such as the number of lease agreements and revenue contracts a company may have, will determine the amount of work involved, especially with regard to preparing an amortisation table and the potential need for external valuation expertise to determine an appropriate discount rate for every lease agreement. Determine the best game plan for the transition It is critical to ensure that your finance team is ready for these changes. Engaging your finance team through training courses, workshops and other methods – before and during the transition phase – will be important in ensuring your team fully understands the upcoming changes. Preparing for change: act now The aim of these FRS 102 amendments is to improve financial reporting by aligning FRS 102 more closely with IFRS. Although most of the amendments will not take effect until 2026, early application is allowed if all amendments are adopted simultaneously. Thus, it is critical that companies put a game plan in place today to determine the optimal timing, scope and method for adopting the FRS 102 amendments. The time to act is now. Emer Fitzpatrick is a Senior Manager in PwC Corporate Reporting Services and a member of the Financial Reporting Technical Committee of Chartered Accountants Ireland. Cayetano Bautista III is a Senior Manager in PwC Capital Markets and Accounting Advisory Services.

Ongoing turmoil in Europe’s largest economy will be exacerbated by Donald Trump’s pledged import tariffs, highlighting the need for EU countries to pull together to withstand transatlantic  trade disruption, writes Judy Dempsey Pity Germany’s next government. Olaf Scholz’s successor will have no time to lose when the federal elections end on 25 February 2025, bringing Scholz’s bickering coalition to a close.  Now, the economy is the priority. Germany’s outgoing government believed the old industrial model just needed a bit of tinkering to effectively counter China’s ever-increasing economic presence – but those days are over.  Massive job cuts announced by Volkswagen and ThyssenKrupp (the traditional giants of the car and steel industry, respectively) demonstrate how this government and its predecessor, led by Angela Merkel, failed to prepare for the inevitable impact of de-industrialisation. The replacement of the combustible engine with electric alternatives – which China has rapidly embraced – has been a shock for German industry, which had mistakenly earmarked China as a reliable export market.  No more.  Germany’s high energy costs and fierce competition from Beijing have combined to catalyse the failure of Germany’s old industrial model – so Berlin’s next government must hit the ground running.  This means making the transition from an old industrial base to more modern sectors driven by digital culture.  It means grappling with a demographic crisis that will only cost more unless the government introduces a robust immigration policy to address the huge labour shortages affecting most sectors.  None of this will happen unless Germany’s next leader loosens the ‘debt brake’ constitutionally limiting government spending.  Germany is in dire need of public financing if it is to invest in defence, climate adaptation, security, housing, transport health and education.   The debt brake (and overbearing bureaucracy) has starved investment. The government already has a spending gap of €64 billion for 2025. If, between 2025 and 2030, defence spending targets were to rise from two to three percent of GDP, it would cost another €300 billion.  This German malaise has serious consequences for Europe.  Last year, Germany had the highest level of intra-EU trade, contributing to 21 percent of the European Union’s exports of goods to other countries. What happens in the EU’s largest economy impacts the entire bloc. To make matters worse for Germany’s next Chancellor – and for the EU – is US President-elect Donald Trump’s stated intention to impose a 10 percent tariff on goods imported from Europe and 60 percent on goods from China.  Germany’s export-driven car industry, one of Trump’s targets, is particularly vulnerable and speeding up the manufacturing of electric-driven vehicles would only solve part of the problem. To escape tariffs, it is reasonable to expect the car industry to move manufacturing to the US. This is exactly what Trump wants.  However, back in Germany, the dwindling market in China for German cars could lead to further job losses.  Trump, too, will pile the pressure on Berlin and NATO allies to spend more on defence. It won’t be easy. Not only because of the costs involved but also because Germany’s far-right and far-left parties are opposed to NATO, opposed to supporting Ukraine and generally pro-Russia. All in all, Germany’s ability to deal with its finances, defence and investment issues will be complicated by the Trump administration.  Ultimately, EU countries need to pull together – even integrate – to withstand the pressures on the transatlantic relationship. Judy Dempsey is Nonresident Senior Fellow at Carnegie Europe *Disclaimer: The views expressed in this column published in the December 2024/January 2025 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.

Smaller employers completing gender pay gap reports for the first time in 2025 have a wealth of information to draw on but much work ahead, write Aoife Newton and Andrew Egan A lot can be learned from the first three years of gender pay gap reporting in Ireland, which means those employers new to this reporting in 2025 have a wealth of valuable data to learn from.  Many large employers are already producing in-depth and illustrative annual gender pay gap reports. Although primarily focused on statutory reporting requirements, they also reflect best practice approaches to tackling gender pay gaps and outline clear, insightful ways to explain these gaps.  For employers preparing to report for the first time, these reports are worth reading, if only to give you a sense of the approach others have already taken. As much as you can learn from this, however, you should not underestimate the volume of HR, payroll and other data required for gender pay gap reporting, the complexity involved in merging this data, the calculations required and the scrutiny you can expect to face when communicating your findings to stakeholders internally and externally.  Gender pay gap results published in 2025 will be based on data collected over 12 months, typically from July 2024 to June 2025, though the exact dates will depend on each employer’s chosen snapshot date.  This means employers not already focusing on gender representation across their organisation may find themselves having to explain sizable gender pay gaps. With Irish employers employing as little as 50 people in scope for reporting next year, we expect to see a lot more focus on this area from the media, employees and other stakeholders.  Smaller employers are subject to the same legislative requirements as their larger counterparts; there are no exemptions for employers with limited resources. This means they will be required to produce a report reflecting accurate results aligned with 11 statistical gender pay gap metrics along with a narrative detailing the reasons for existing gaps and measures (both existing and planned) to reduce or eliminate these gaps.  New 2024 regulations – new results? The Employment Equality Act 1998 (section 20A) (Gender Pay Gap Information) (Amendment) Regulations 2024 were introduced last May and it will be interesting to see what impact they have on this year’s gender pay gap reporting results. Under the 2024 Regulations, social welfare payments relating to certain periods of protective leave can now be included in gender pay gap calculations. This is a welcome development as it may help reflect parity of payment in line with notional hours worked.  Prior to this, the regulations have only included ‘top-up’ payment made by employers as relevant pay for gender pay calculations, providing that social welfare payments should be excluded (notwithstanding that full hours have been included).  The impact of this approach has been to reflect a lower hourly rate of pay for employees in receipt of certain welfare payments.  For 2024 reporting and beyond, employers will need to include both maternity leave benefit along with a maternity ‘top-up’ payment (i.e. 100% pay) matched with 100 percent hours.  This should reflect a notional increase in pay for women, thus helping to ‘reduce’ an employer’s gender pay gap compared to last year’s reporting. The 2024 Regulations also adjust the treatment of share options and interests in shares. These are now considered benefit-in-kind rather than forming part of bonus payments.   This could have a significant impact on the gender pay results of in-scope employers as benefit-in-kind is not included in either overall gender pay calculations or separate bonus calculations. Previously, share options and interests in shares were included in both.   The issue of actual shares (to be valued on the date of issue) continue to be part of the bonus calculation. So far in 2024, we are seeing steady results in completed reports compared to reports in the two years prior.  Typically, any significant variations in results can be explained by reference to changes in personnel at a senior level or due to business restructures. Both will continue to impact annual reporting.  Comparison is key An important aspect of reporting for many employers is how favourably, or otherwise, they compare with their peers operating in the same sector or industry. For example, if an employer operates in a sector that is traditionally male dominated (e.g. engineering), this will clearly influence their gender pay gap results.  In certain sectors, such as professional services, where employers are recruiting in the same talent pool as their competitors, how their organisation compares to their peers really matters.  Ideally, employers will want to see results that are either “similar to” or “more favourable than” their competitors.  If their results are not, boards and management should query why they are out of line with competitors with a similar resourcing structure recruiting from the same talent pool. In particular, it is worth examining whether there are discriminatory practices behind any results revealing a wide gender pay gap as this could be affecting female representation at the higher levels of the organisation – or perhaps the organisation’s pay and bonus structure is weighted in favour of men?  Ultimately, gender pay gap results serve to root out any embedded issues that may be impeding more equitable pay across the board. New developments in 2025 The biggest change in 2025 will be the extension of the gender pay gap reporting obligation to employers with just 50 employees. In addition to this development, we expect to see some changes to how the gender pay gap reporting process is carried out.  As it stands, employers must include their gender pay gap data and statement of information on their website – or have it available for public inspection.  We understand the Government has issued a tender for the development of an online gender pay gap portal, with development due to start in the coming weeks and testing earmarked for the new year.  It is expected that the portal will have similar functionality to an online gender pay gap portal already in operation in the UK.  If this is the case, the portal will allow employers and other interested parties to compare and contrast results with ease, rather than having to rely on the current, more laborious, manual process.  This new system of reporting is also expected to result in the reporting deadline being brought forward to the end of November 2025.  Employers – both those already reporting and new to the regime – will therefore have a five-month window in which to report, slightly shorter than the current six-month timeframe.  All employers in scope for reporting next year must thus be vigilant and ensure they are up to date at all times with the portal requirements and potential new deadline.  The EU Pay Transparency Directive Looking further ahead, as the EU Pay Transparency Directive (the Directive) is due to be transposed by June 2026, we expect to see many more changes to the reporting regime in the coming years.  The implementation of the new rules under the Directive will not only change the amount of data required but will also align gender pay gap reporting more closely with the employee engagement agenda.   Further, gender pay gap reporting under this Directive will not simply be about producing an annual report of results and narrative; it could also open up data results to scrutiny from trade unions and other employee representatives.  Where there are gaps of more than five percent in any category of worker (these categories are yet to be defined), which cannot be objectively justified and cannot be rectified within a six-month period, the employer may have to engage in a joint pay assessment.  Such joint pay assessments are expected to involve trade unions or other employee representatives.  Employers and all relevant stakeholders should, therefore, be more concerned about how the Directive will shine a light on their organisation’s gender pay gaps, bringing current reporting closer to the principle of equal pay and overall pay transparency.   Acknowledge the gaps Given the additional layer of data scrutiny under the EU Pay Transparency Directive, we are encouraging all employers with gender pay gaps in favour of male employees to commit to deeper analysis.  By better understanding the causes of such gaps at every level of their business, they will find these discrepancies easier to explain (based on objective criteria), and also potentially easier to rectify.  And while not all gaps may be fixable in the short-term, a deep analysis can give employers a good starting point to devise a longer-term solution, as well as greater scope to explain these gaps to legislators with reference to objective criteria. Ultimately, employers who are not focused on gender parity, closing gaps or preparing for the impending new regime, may be exposed to time-consuming and potentially contentious joint pay assessments.  Aoife Newton is Head of Employment and Immigration Law, KPMG Law LLP  Andrew Egan is a Director with KPMG, leading the firm’s tax data and analytics service offering

Maria Johnson, Head of Finance for Capital Investments at Iarnród Éireann, talks to Liz Riley about her journey to becoming a Chartered Accountant, the value of balance, and the lessons learned from a diverse and rewarding career Starting out, my journey to accounting was somewhat convoluted.  First, a late change to my CAO form brought me to the University of Limerick where I did a degree in Business Studies and French at the University of Limerick, ultimately choosing to major in Economics and Finance and minor in French.  I undertook the Professional Diploma in Accounting at Dublin City University (DCU) and I am now a Fellow of Chartered Accountants Ireland and Head of Finance for Capital Investments at Iarnród Éireann.  I am also lucky enough to be a mother, a stepmother, a daughter, a wife, a sister and a friend.  Capable business advisor I participated in the “milk round” while studying at DCU and decided that training in audit with BDO should be my next step.  The firm proved the ideal choice to commence my career as a Chartered Accountant.  As the audit department was not split into sector-specific teams, I was exposed to numerous sectors, including pharmaceuticals, financial services, professional services and manufacturing, during my training contract.  I also completed two client-based secondments, which gave me valuable real-world experience early in my career.  The BDO philosophy was to ensure the firm’s graduates would become capable business advisors as well as confident accountants through consistent exposure to partners and senior managers, genuine dealings with clients, attendance at relevant meetings and opportunities to present findings and solutions.  This philosophy has benefited me throughout my career, enabling me to work across sectors undaunted and ensuring that I can have valuable conversations with clients and colleagues as required without reservation.  I learned not to be pigeonholed either through education or early career choices. Up-and-coming accountants should aim for a degree and graduate programme that is established and will give them maximum exposure to sectors and professions in their chosen field.  Trading in facts I completed my graduate programme in October 2008, just as the Celtic Tiger was waning and the recession approached.  I was asked to join the Corporate Advisory and Recovery Team at BDO. I worked on this team until June 2014, moving from manager to senior manager during this tenure.  It was an unimaginably busy but rewarding time. All insolvency processes involve an investigation and an evaluation of how the company ultimately failed. These investigations involve forensic reviews of the books and records of the company and meetings and interviews with the officers of the company.  I learned to always remain resolutely professional, treating everyone I meet respectfully and equally – never make assumptions, trade only in facts and always back up all conclusions with evidence. Managing “the juggle” In July 2014, I moved to London with Mazars to work on an engagement for the Financial Conduct Authority. From there, I came back to the Dublin office to work in the financial consulting and decision-making support team. Our team specialised in financial modelling, data analysis and capital business cases. I became a Director on this team in September 2019.  During my time at Mazars, I became a proud dog owner, got married and became both a stepmother and a mother. We also moved from the highly convenient Harold’s Cross to a more family-friendly Portmarnock.  So, I became very well acquainted with “the juggle”.  When I returned from maternity leave, I received some timely advice suggesting I should become very aware that my time was no longer ‘elastic’, meaning I needed to set strict boundaries and stick to them.  This advice has always stuck with me and helps me to set my priorities for the day or week and allocate focus time to achieve those priorities. While it is always good to be flexible, this can no longer be a constant when crèche closing times are set in stone.  Making a different to Ireland’s future In March 2020, I joined Iarnród Éireann as Head of Finance for the newly formed Capital Investment Division. Capital Investments is tasked with building the “railway of the future”.  The Capital Investments team is currently delivering the DART+ Programme, the Cork Area Commuter Rail Programme, the reopening of the Foynes Line in County Limerick and many more projects across the island of Ireland.  I always loved practice. My move was not planned. It was simply that a role I was truly interested in pursuing crossed my path and I couldn’t resist exploring it further.  I have seen many colleagues and friends take roles specifically based on monetary rewards. While this is, of course, important, it rarely results in long-term career success.  I am enjoying working on a multidisciplinary team that is making a real and enduring difference to the Ireland of the future. This role allows me to leverage all the lessons learned in my career to make a real contribution to a busy senior management team. Don’t rush and take time to learn from and enjoy the many opportunities that come your way. I have held many different roles within the accountancy profession.  The work I have undertaken and the professionals I have had the privilege to work with along the way have shaped how I interact with colleagues, approach the work I do and represent my team at an organisational level today.  I’ve learned several things over my career that has influenced my work at Iarnród Éireann: Where possible, always work for companies that have a culture and strategy you are comfortable with.  Real flexibility and respect for work-life balance are lived experiences rather than buzzwords in graduate brochures and company websites.  Organisation is key. I have a great team who are highly committed to their work. I am grateful to them for all that they do, but I also respect that they all have competing priorities. Everyone has competing priorities in life irrespective of their gender, age or stage of life. We try to identify additional priorities and ad hoc tasks well in advance and plan for them around business-as-usual responsibilities to ensure everything is done in a timely and professional manner Balance in teams is essential. I have been a manager in one guise or another since I was 25. I have always happily gotten to know each of my teams. Impromptu coffees and lunches and, most of all, genuine interest are much more valuable than expensive annual outings, etc. Respect, organisation, a shared goal and camaraderie must be a constant in any successful team. Striving for balance Life is a balancing act. I have always worked for organisations that respect diversity and inclusion. I have had colleagues from all backgrounds and across many nationalities. I don’t believe being female has strongly influenced my career and I have been awarded opportunities on merit where deserved.  Where the juxtaposition of gender roles does come into play is in the mid-career juggle between career and family. Society’s expectations are enormous and growing, and the pressure to be the best at everything is real.  I am lucky to have a husband and life partner who also holds a demanding role and who is committed to working with me to do our “best” with life’s challenges and professional obligations in a given week – not “be the best”, but do our best.  I once heard at an International Women’s Day event in London that in any relationship there is an ebb and flow as to whose “time” it is. This is how we run our household every week. It is not always any one person’s “time”, but rather everyone gets their “time” when they need it.  In reflecting on my journey, I recognise that every step – whether carefully planned or serendipitous – has contributed to the professional and personal life I lead today.  To those beginning their own journeys, I would say this: remain open to change, stay true to your values and strive to balance ambition with the things that truly matter in life. The path may be winding, but it’s the experiences and people along the way that make it rewarding.

Ireland’s high beta economy makes us the EU member state most vulnerable to incoming US President Donald Trump’s planned import tariffs, writes Cormac Lucey   T he essential goal of financial management is for a firm to maximise its valuation while minimising risk as measured by volatility in that valuation. The measure of risk used by the Capital Asset Pricing Model (CAPM) is beta. This measures the anticipated rise or fall of an individual stock price in proportion to the movements of the stock market.  A stock with a high beta is expected to undergo large share price moves relative to market moves.  If one were to view the economy of the Republic of Ireland as the equivalent of a stock, one might describe it as a high-beta economy.  Right now, it is exposed to several factors that significantly increase its riskiness relative to its economic neighbours.  Donald Trump and his declared policy of getting US multinationals to repatriate jobs back to the US represents the single biggest economic danger currently facing the Republic.  This is because Ireland’s success in attracting such jobs has laid the foundations for its current economic success.  It has long been understood that the multinational corporation (MNC) sector pays a disproportionate share of corporation tax in Ireland and a new report from the Revenue Commissioners confirms this.  According to Corporation Tax: 2023 Payments and 2022 Returns, the foreign MNC sector paid 87 percent of all corporation tax in Ireland in 2022.  According to an IDA Ireland report published in the same year, a total of 301,475 people were working for foreign multinationals in the country at that time.  According to the Central Statistics Office, meanwhile, of the 2,121,300 people working across the entire economy in 2022 – just 14.2 percent were employed by the MNC sector. Yet, thanks to the highly progressive nature of our income tax system and the much higher wages paid by our MNC sector, this cohort paid 54.6 percent of total income tax.  The cherry on the cake is that, according to Revenue, the MNC sector also accounted for more than half of all VAT payments (53.8 percent). A Danish employers’ study based on a model devised by the Oxford Economics business group stated that Ireland would be the EU member state hardest hit by a full imposition of Trump tariffs, with the potential loss of 30,000 jobs and GDP in 2027 at four percent below what it would otherwise be. This would represent a huge hit to the economy and to the public finances.  The new government’s honeymoon might not last very long. It’s also hard to imagine that Ireland can escape the attention of the incoming Trump administration when it was the focus of so much pre-election scrutiny.  While campaigning, Trump promised blanket levies of 20 percent on all US imports, as well as tariffs of 60 percent on those from China, suggesting his second-term policies could be even more disruptive to global trade than those of his first administration. The incoming Trump administration knows for sure that it will have two years, at least, while it enjoys a congressional majority. Any politically partisan battles it plans will be best fought (and won) in that period.  The Trump factor will add enormously to uncertainty in Irish economic policy in 2025. This level of uncertainty was already high with slowing economic growth in the UK, France, Germany and China, to name some large economies.  When things are improving, you want greater exposure to beta – but not when they are disimproving. When that happens, you want to fasten your seatbelt! *Disclaimer: The views expressed in this column published in the December 2024/January 2025 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.

For Jaimie Dower, having a supportive work environment has played a critical role in helping her to navigate her gender transition positively and proactively When Jaimie Dower made the decision to transition in May 2022, she knew how important it would be to take a proactive approach to communicating her experience, not just in her personal life but also at work to her colleagues and clients at EY Ireland. For Dower, who is an Executive Director in EY’s Audit Quality Programme, her transition marked a watershed moment in her life. She was, she says, finally ready to “stand up in front of the world and say, ‘this is me’.”   “This is something that has been with me my whole life and something I had up until that point struggled with and hid,” Dower explains.  “There was always a disconnect – the person I knew I was inside and the person I was on the outside were not the same.  “It impacted my life in so many ways because there was always this noise in my head – this static – and the way I dealt with it for many years was to mentally compartmentalise and throw myself into things and say to that noise, ‘go away; I’ll deal with you another time.’” For Dower, who lives in Waterford and works at EY’s southeastern hub in the city centre, it was the onset of the COVID-19 pandemic in early 2020 that proved the catalyst for her transition. Working long hours at home and surrounded by the uncertainty that had engulfed the world as the pandemic took hold, she found she was no longer able to rely on life-long coping strategies. “I think this will resonate with a lot of people for their own reasons, but that first COVID lockdown in March 2020 really brought things to a head for me,” she says. “Out of everyone in our family, I was the one working alone from home the most. I had a lot of time to myself and, suddenly, I couldn’t manage those boxes I’d compartmentalised everything into anymore.  “Looking at what was happening in the world around me at that time, there was also this really strong sense of, ‘life’s too short.’  “It wasn’t just that I didn’t want to hide who I was anymore; I wanted to celebrate it. I wanted to stand up in front of the world and say, ‘this is who I am.’ That really came home to me during COVID.” First steps and early conversations Dower’s first step was to seek professional help. Working with a therapist helped her to ‘clarify’ her thoughts and begin to plan the practicalities of managing her transition.  “Talking to someone at that stage was very important – to have that help and support in coming out to myself, really, and the sheer relief of being able to say it out loud. It was powerful,” she says. By mid-2023, having begun hormone treatment, she was ready to start thinking about how to communicate her transition at work. “The hormone treatment changed my life. I can only describe it as coming into full focus for the first time. The dissonance I had felt all my life faded away. Now, I had to think about how to start telling people about my transition – to put a plan in place I was comfortable with.”  Initially, Dower decided to get involved in Unity, EY’s global LGBTQ+ network. “I took things slowly at first, getting involved in things like helping to organise Pride events. I got to know colleagues in the network and had one or two small conversations – really just to begin to gather my own thoughts on how to approach this.” By late 2023, Dower was ready to take more formal steps, and she reached out to EY’s HR team for support. “Their support was incredible. I was able to work directly with a colleague on the HR team I knew I could trust to work out a plan. That trust was immense for me.  “We talked about when I would start speaking to people, who I needed to speak to and when, and about what I wanted to say.” Intentional communication Dower began communicating with her colleagues in mid-February 2024 in advance of presenting at work as her authentic self. “There was a lot of anxiety for me initially around those conversations. Having worked at EY for 30 years, I did feel a lot of pressure because I have long-standing relationships with colleagues within the firm and clients externally and they trust me.  “I had faith that there would be a positive response, but in the back of your mind, there is always the worry that someone might not react well. “I will never forget that first call we set up for 2pm on a Friday afternoon with all the Assurance Partners across EY in Ireland – that was our starting point. “I work with EY people all around the country, but primarily in our Dublin office, and I needed to communicate to everyone.  “So, once I had that call with our Assurance Partners, I set up another group call with everyone on my team and then I sat down face to face with everyone in our Waterford office.” Although intense and, at times, overwhelming, the process also proved to be “empowering” for Dower who welcomed the positive feedback and support offered by colleagues.   “It was the support that came afterwards that really meant so much to me – people reaching out to say, ‘I’m delighted you were able to come to me and tell me this. I am with you – I support you.’  “Just knowing I could come to work as myself and it would be okay was incredible, because not everyone has that experience. Not everyone has that support.” While not easy, the process held great value for Dower, who felt empowered by being able to work proactively with her colleagues at EY to communicate her transition. “Every one of those conversations was difficult, no matter how many times I did it. Effectively, it was just me having to strip away all my defences to tell my story in different ways to different people depending on the nature of our working relationship and how well we knew each other.” “In some ways, it is a never-ending journey, but all I am fundamentally saying is, ‘I am still me, but I am the authentic me – a better version of me’.” Meaningful support and guidance In supporting employees at work as they transition, Dower sees enormous value in collaborative diversity, equity and inclusion initiatives, such as EY’s Unity network, which can help to foster a sense of community and act as a crucial conduit for support and communication. “Through my involvement with Unity, I had the privilege of being able to play a role in revising EY’s Transgender Identity, Expression and Transition Guidelines and I was also able to take part in a Transgender 101 Webcast for staff across the organisation.” As Dower sees it, such initiatives are vital in helping to foster a supportive environment for transgender employees and providing guidance and resources for the wider workforce. “From the employer’s perspective, education is so important. I’m not in a position myself to go around every day educating every person I meet. That’s where things like guidelines and webcasts can have real value. Even just a little bit of education can go a long way.” In particular, Dower sees value in establishing clear guidelines that are equally applicable to all and give everyone a simple and transparent baseline to work from. “I’ve had a sense sometimes that some colleagues may be a little nervous. It’s not that they are not supportive, it’s maybe that they are afraid that they might say the wrong thing or use the wrong terminology, and inadvertently cause offense or upset – and that is the last thing I want,” she says. EY’s Transgender Identity, Expression and Transition Guidelines include sections on gender identity and expression and the correct or inaccurate use of terms relating to gender expression, including pronouns. Guidance is also offered to managers on how to support transitioning employees and to individual employees who are transitioning. “I am very fortunate that EY as a firm, as an employer, has been so willing to work with and support me. When I reached out, the response wasn’t, ‘this is what we need from you,’ it was, ‘what do you need from us?’  “Now, I really want to communicate how important this is to the wider world, because I feel a responsibility to others who are transitioning and may not have the same support I have at work,” Dower says. “Because I have been with EY for 30 years, I have the privilege of a longstanding presence in the organisation and all the trust that comes with relationships built over that time. “Right from the outset I’ve thought, ‘if I can get this right, it might make it easier for someone who is younger and newer in the door who is going through the same thing.’  “Representation matters; visibility matters. Ultimately, I want to do what I can to help make this process easier for others in the future.” Interview by Elaine O’Regan Supporting employees transitioning at work For any person undergoing gender transition, the support of their employer, managers and colleagues will be crucial, and open, honest communication will play an important role in building trust and supporting a positive experience.  “At EY, we are committed to supporting individuals as they go through gender transition and working closely with them to provide personalised support, aid in establishing an action plan and setting expectations,” says Derarca Dennis, EY Ireland’s Assurance Partner and Sustainability Services Lead. “We value diversity and inclusion and the creation of a safe workplace in which everyone has the best opportunity to reach their full potential.” Based on EY Ireland’s own Transgender Identity, Expression and Transition Guidelines, Dennis shares seven key ‘best practice’ focus areas for all employers and managers seeking to support their own employees undergoing gender transition: Develop a transition plan When an individual approaches you with their intention to transition, it is imperative that you are supportive, open-minded and honest. Be prepared to discuss their aims and expectations, and what they intend your role to be in the transition. Make sure to consider stakeholders, colleagues, policies and procedures existing in the workplace. Ask your HR team for guidance and support as needed. Prioritise effective communication Clear, open and honest communication from managers, employees and the transitioning individual is essential. Communication will be different in all transitioning plans and dialogue can help alleviate any potential difficulties or issues. Hosting information and awareness sessions for team members and other stakeholders should be considered when developing this plan. Other fundamental communication areas to consider include what the transitioning individual is comfortable and willing to share.  Practise sensitivity and respect Be prepared to treat any employee who is transitioning with respect and an open-minded attitude. Be ready to ask questions, listen and understand their needs and concerns. All employees deserve to be treated with respect and sensitivity when related to their personal lives.  Use pronouns correctly Using the correct pronouns (he/she/they/ze etc) is extremely important. Simply ask the individual which pronoun they would like people to use and then ensure that everyone knows this. It may seem like a small thing, but it is incredibly important to get right as it demonstrates validation of the individual’s authentic self, which will go a long way towards helping them know they are fully accepted in their expression of their gender identity. Educate and raise awareness While everyone is expected to behave in accordance with policies, there should also be an opportunity for education and questions to be asked related to the transition process. It may be useful to host information sessions and forums to address concerns and educate employees who work in the team.  Guide on client conversations Should the individual be client-facing, they should be offered support (if required) in facilitating a conversation with any clients they work with. It is important to reinforce that their technical abilities will not have changed as a result of their expression of their gender identity and clients should be made to understand that all team members working with them must be treated with the same support and respect.  Respect confidentiality and privacy You should always maintain an appropriate level of confidentiality and privacy in relation to employee matters. Information should only be disclosed to those who need to know (such as HR, for example), those involved in the process, or those who have the consent of the transitioning employee. 

After a frenetic three-week campaign, General Election 2024 has essentially left us where we began – with a likely Government led by Fianna Fáil and Fine Gael albeit this time without the Greens.  The precise makeup of the final coalition is as yet unclear. However, given that the outgoing coalition’s collective seat take will likely not leave them far off the 88 seats needed to command a Dáil majority, it is safe to say that whoever gets the nod to make up the numbers won’t have the same bargaining power to influence policy as some previous smaller coalition partners may have had.  Against this backdrop, it’s safe to assume that the next Programme for Government will largely, if not entirely, be dictated by the policy priorities set out by Fianna Fáil and Fine Gael in their general election manifestos. So, what might this mean for small businesses?  Addressing the cost of doing business  In their respective pre-election pledges, both parties were keen to highlight their awareness of the rising costs of doing business. In Fianna Fáil’s case, they pledged to address this by establishing a new “Cost of Business Advisory Forum” to conduct a review of all current business costs and taxes.  According to the party’s manifesto, “this forum will be consulted before introducing new legislation or policies that affect small businesses.”  Likewise, in its manifesto, Fine Gael took a similar tack by reasserting its commitment to apply what it calls the “SME test” to any new legislation coming down the track – a test that would essentially require all departments to first assess the impact on small businesses of any new measures being proposed prior to enactment.  So, with both parties essentially singing from the same hymn sheet on the issue, it is likely that we will see the announcement of some sort of new initiative designed to limit the amount of new regulations that could further add to the cost burdens of small businesses.   Employers’ PRSI   Again on the issue of reducing business costs, both parties also made specific commitments to reduce the Employers’ PRSI burden where lower earning workers are employed.  While Fine Gael favoured a temporary, three-year PRSI rebate based on the number of lower-earning workers on a company’s payroll, Fianna Fáil pledged an outright reduction to the lower rate of employers PRSI by 1.5 percent.  The logic behind the latter proposal (we know this because the Institute’s pre-election manifesto originally proposed it) is to mitigate the concurrent 1.5 percent uptick in payroll costs due to hit many employers in late 2025 through the introduction of pensions auto-enrolment.  So again, with both parties essentially aligned here, it’s fair to say that a reduction or rebate of the lower rate of Employers’ PRSI in some format will also likely feature in the next Programme for Government.   VAT on hospitality  The issue of VAT on hospitality was a notably contentious issue in the run up to Budget 2024 with the Government ultimately refusing to reinstate the reduced nine percent rate despite extensive lobbying from the sector.  However, the way in which each party subsequently approached the issue in their election manifestos is perhaps telling of a policy fissure between the two.  Fine Gael clearly favours a reduction, albeit to a midway rate of 11 percent while Fianna Fáil is notably silent on the issue in its manifesto, instead placing its focus on maintaining VAT on gas and electricity bills at nine percent for the next five years.  How this difference in approach will ultimately play out in the final Programme for Government is as yet unclear. However, Fine Gael’s pledge to implement a reduction will no doubt have created an expectation from the hospitality sector that some sort of action will be taken on reducing the rate.  Energy supports  High energy costs continue to be an issue for many small businesses and the manifestos of both Fianna Fáil and Fine Gael have again sought to tackle this through further one-off grant schemes.  In Fianna Fáil’s case, the party has pledged to introduce a successor to the Increased Cost of Business/Power Up grant schemes to help hospitality and retail businesses deal with higher energy bills.  Likewise, Fine Gael has promised a new energy cost grant scheme, “to help businesses lower their energy costs, enabling them to operate more sustainably.” Given that the two parties appear to be broadly aligned on the issue, a new round of temporary energy support grants seems likely.  However, what is less clear is how the announcement of these relatively piecemeal measures will be received by businesses, particularly given the slow uptake of previous such schemes over the past two years. Stephen Lowry is Head of Public Policy at Chartered Accountants Ireland

With the festive season upon us, demand for the services offered by CA Support is on the rise. This Christmas, we are appealing to our members to embrace the idea of community and help those in need As the holiday season approaches, many of us will be looking forward to the warmth, joy and wonder that comes with it.  For some, however, Christmas and New Year celebrations can be a time of incredible stress, worry and insecurity.  For individuals facing financial difficulties, in particular, the season can be a painful reminder of what is lacking and left unfulfilled.  What is CA Support?  CA Support is the charitable foundation of Chartered Accountants Ireland. Offering emergency financial assistance to members, students and families in need, it acts as a safety net for those in our community who find themselves in difficult circumstances.  CA Support helps cover immediate and urgent needs like food, shelter, bills, medical expenses and other essentials such as back-to-school costs.  At this time of year, we also strive to protect the magic of Christmas for families by contributing to the cost of toys and Christmas dinners.  CA Support assists over 100 individuals and families at any given time, and demand is ever-growing.  In 2024 alone, there was an 18 percent increase in cases compared to 2023.  Like most registered charities, CA Support relies on the generosity and goodwill of the Chartered Accounting community to ensure that no one in the profession struggles alone.  Why help?  With state support only going so far, donations offer a lifeline to members to get them through often the toughest and most tumultuous times in their lives. These donations can help families facing evictions, single parents struggling to manage household costs and childcare, and elderly members unable to cover medical expenses.  They can help everyday members grappling with a loss of earnings due to illness, caring for dependants or struggling with mental health issues.  By contributing to CA Support, you help ensure that everyone in our community – no matter their circumstances – is provided with safety and security.  Please consider donating to CA Support this giving season. Together, we can make next year brighter for those who need it most.  Donate today to CA Support

Richelle Manning, Investor Relations and Credit Rating Manager at ESB, tells us about her career path, passion for decarbonisation and climate action, and plans for the future. Richelle Manning, FCA, is Investor Relations and Credit Rating Manager at ESB. Manning joined the semi-state energy utility in 2014 having trained in KPMG’s Restructuring and Forensics Department and remaining with the firm for a further three years. She grew up in Kells, Co. Meath, and has a degree in business and legal studies from UCD and a Master of Accountancy from UCD Smurfit School. She is a member of the board and treasurer at Meath Women’s Refuge and Support Services. Tell us a bit about yourself, and when and why you decided to become a Chartered Accountant? Both my parents worked outside the home when I was growing up, and they always emphasised the importance of finding a career I would truly enjoy and that would give me the freedom to do anything I wanted in life. While at secondary school, I was also fortunate to have a very inspirational business and accountancy teacher, Ms Bird, whom I admired greatly. I think it was her influence, coupled with my parents’ guidance, that led me to pursue a career as a Chartered Accountant. It is a profession that offers many opportunities to work in a wide range of areas and in different parts of the world, providing a solid foundation for significant professional growth. Has your career unfolded as you anticipated or were there some surprises along the way? I wasn’t organised enough to have a career plan, but I knew coming out of college that I would like to undertake a graduate programme with a large accountancy practice, focusing on the restructuring area. I liked the idea of helping struggling businesses to formulate turnaround strategies to help them find success and profitability again. The years I spent working at KPMG were some of the best of my career. I had the opportunity to support some of the biggest Irish and international companies across a wide range of industries and gained firsthand insight into the challenges management teams and businesses can face. I then joined ESB Group and continue to enjoy fantastic opportunities working across all areas of the energy industry. The decarbonisation of the energy industry in Ireland is a key enabler for the transition to a net zero future for Ireland. While this wasn’t something I was thinking about when I joined ESB Group, it is one of the reasons I have stayed here for 10 years. I am deeply committed to the vision outlined in our Net Zero by 2040 strategy and I am driven by the actions I can take to help achieve this goal. I have always been open to accepting new opportunities as they arise, and this has led to me meeting some truly inspirational people, working on projects I could never have envisaged and being successful in my career. What does your role as ESB’s Investor Relations and Credit Rating Manager involve day-to-day? My role is ultimately about sharing ESB’s vision, strategic ambitions and financial results with our investors and credit rating agencies. As a semi-state entity, ESB relies solely on debt investors for external funding to finance our extensive capital investment programme as we work towards decarbonising the electricity sector in Ireland. Maintaining our credit rating of A- is therefore critical to ensuring we have access to the bond markets. No day is the same – my role offers lots of variety. I spend a lot of time meeting with investors and discussing ESB, its net zero goals and the associated funding required to achieve those goals. In recent years, we have seen investor interest extend beyond our financial results to encompass our sustainability goals, progress and achievements. In 2024, investors have been particularly interested in our plans for reporting under the Corporate Sustainability Reporting Directive, and in our two recent publications outlining ESB’s sustainability leadership plans and pathway to net zero. I also work quite closely with colleagues internally, providing advice and guidance on our credit rating and investor requirements, and assessing and advising on the implications of certain transactions from a credit rating and investor perspective. Are you glad you made the decision to qualify as a Chartered Accountant? Yes. The Chartered Accountant qualification is highly regarded in Ireland and worldwide. I found the training prior to qualification and subsequently, through continuing professional development, both relevant and informative. It has helped me to build the capability and skills needed to succeed as new challenges arise. Among the people you have worked with over the years, who has been your biggest inspiration? I have been lucky enough to work with some wonderful people throughout my career who have inspired me and whom I very much admire. I have also had mentors and coaches who have provided inspiration and guidance, especially at times of big transitions in my life such as returning from maternity leave, undertaking new roles and seeking promotions. I am quite passionate about the impact mentoring can have in helping individuals achieve professional success. I currently manage the finance mentoring programme at ESB, an award-winning scheme that helps finance professionals build the capability and skills to achieve their career goals. One of the most important lessons I have learned over the years is the importance of building relationships. Success is achieved through working with people. Significant changes are underway in the energy industry right now and it is only by working together, with an open mind and a willingness to learn, that we will be able to deliver what is required to meet our net zero goals. How has the role of the Chartered Accountant evolved since you joined the profession? At ESB, we have Chartered Accountants working in all areas of the business – not just on the finance team. Chartered Accountants are seen as strategic advisors, commercially focused and thoughtful leaders who can provide insights and guidance on a wide range of topics. The Chartered Accountancy qualification is a great foundation for any career. It helps to build skills that can be used across a range of business areas. What advice can you offer ACAs starting out on their career path today? The best advice I can give is to be open to exploring new opportunities and experiences as they arise. Building a strong support network is also key to success. Who do you admire most right now in business or public life? I remember the election of Mary Robinson as the first female President of Ireland. Even as a child, I was aware of how she had rocked the system and the positive impact she had on women in Ireland and globally. Throughout her life, she has used her position to highlight issues like domestic violence, lobbied for women’s rights and held perpetrators of human rights abuses to account. Today, Mary Robinson continues to use her voice and platform as an advocate against climate change through her role in Project Dandelion, a woman-led initiative addressing climate change. Her strong commitment to women’s rights, human rights and to addressing climate change, specifically from a female perspective, really resonate with me. I see her as a great role model. What are your plans and ambitions for 2025? I have two key focus areas for 2025: sustainability and artificial intelligence (AI). I have committed to taking part in the ESB Sustainability Navigator Programme, an initiative aimed at creating a culture of sustainability leadership throughout the organisation and I am looking forward to growing my knowledge in this area. On the AI front, ESB was one of the first companies in Europe to deploy copilot for Microsoft 365 and I am hoping to enhance my learning and use of this platform throughout 2025. This will hopefully help me to focus on high-value activities and improve knowledge-sharing and collaboration within my teams.