Julia Rowan answers your management, leadership and team development questions Question I am a mid-level manager in a large company with four direct reports who all manage teams of three to five people. We work to high standards and I don’t think we have any problems. I have one-on-ones with my direct reports and the five of us meet every fortnight. About once a month, the whole department meets. Should I be doing anything differently? We’ve worked hard to get here, and I don’t want to rock the boat, but I think we have more to give. Answer It sounds like you are doing a lot of things right. This is a great time of year to look at how the team functions and put strong foundations in place for the year ahead to increase your relevance and visibility. I trust that you and your team have more to give. Employees appreciate being consulted – and managers are often pleasantly surprised by their insight and interest. I suggest that some carefully planned team events could be very productive. Begin by working out what you want for your team and the service you provide. If you could describe “a better team,” what words would you use? Feel free to use words like “more” or “less,” and then change “less” to “more” (e.g., “less dependent’ might become “more independent”). If your organisation has a strategy, read it and reflect on where your team intersects. Consult with your direct reports to make sure they are on board. Organise a half-day session with the whole team. Plan it well and make it feel special – offsite, if possible, refreshments on arrival, lunch to finish, etc. Open the session by discussing your strategy and the team’s strengths. Celebrate wins – big and small – to build confidence and acknowledge contributions. Keep the focus positive while the teams build confidence in engaging in this type of process. For example, identify lessons learned rather than mistakes made and use interactive activities like a SWOT/SWOC analysis (strengths, weaknesses, opportunities, threats/challenges) to assess the team’s current standing and potential for growth. Don’t rush the pace – it can be really useful to meet a few times as issues can settle, and ideas can emerge between sessions. Consider the perspectives of stakeholders, including your senior team, customers and suppliers. One effective way to do this is by placing a few chairs in the room to represent them. Invite your team to occasionally take the seat of these stakeholders and ask questions such as, “What do they want from us?” and “What else can we provide for them?” This allows team members to see things from a different perspective. A valuable outcome of a session like this could be that team members ask for feedback from stakeholders using a set of agreed-upon questions. Use the opportunity to strengthen relationships within your team. For example, you might ask people who they would like to acknowledge or appreciate or which team they would like to work more closely with. As ideas about ways forward emerge, you might translate these into goals for 2025 – perhaps allocating ownership to front-line team members. This provides a nice connection to your team meetings. Julia Rowan is Principal Consultant with Performance Matters Ltd, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie If you read one thing... “The Boy, the Mole, the Fox and the Horse” by Charlie Mackesy is a gentle book that addresses human emotions like love, vulnerability, courage and connection. Beautifully illustrated, it would make a lovely takeaway from a team session.

As we draw the curtain on a challenging year, three Chartered Accountants offer their personal insights and predictions for the Irish economy in 2025 John Donoghue, Chief Executive Officer at Ifac As we look ahead to 2025, Ireland’s farming and agribusiness sectors face a pivotal year marked by both opportunities and challenges. While 2024 has delivered favourable weather conditions and decent commodity prices, regulatory and environmental hurdles will test the resilience of agricultural enterprises in 2025. The most pressing concern is the potential loss of Ireland’s nitrates derogation. The derogation has been crucial in enabling Irish farms to maintain high productivity levels, and its removal would require significant operational changes. At Ifac, we are conducting extensive stress testing with dairy farmers to assess various scenarios, including reduced herd sizes, expanded storage facilities and land acquisition strategies. We recently welcomed Dr Rosie O’Neill as Director of Sustainability, and she is working closely with businesses in food and agriculture to help them plot their sustainability journey. Sustainability has emerged as the defining challenge across farming, food production and agribusiness. Large food producers face mounting pressure from retail customers to demonstrate not only their own environmental credentials but also the sustainability of their entire supply chain. The dairy sector appears to be reaching a plateau after years of expansion. Current trends suggest the number of dairy farmers in Ireland could decline from 16,000 to about 12,000 over the next five to six years, presenting significant output risks and a big challenge for our major dairy co-operatives. The regulatory burden continues to grow, particularly with the Corporate Sustainability Reporting Directive (CSRD) coming into effect. From 2025, a broad group of our corporate clients will need to report on their sustainability metrics, adding another layer of complexity to business operations. Export markets offering growth opportunities and expansion into larger markets, particularly the UK and US, remain crucial for our food producers. The road ahead demands a delicate balance between maintaining productivity and meeting environmental requirements. Success will require investment in sustainability initiatives, careful strategic planning and continued innovation across the sector. Sarah Meredith, Tax Partner at Grant Thornton From the perspective of a tax advisor, my hopes for 2025 include simplifying and bringing certainty to the tax code. We have witnessed some seismic changes to the tax landscape in recent years, driven largely by the Organisation for Economic Co-operation and Development (OECD) and European Union initiatives. For groups within the ambit of the OECD’s Pillar II rules, the approach to tax compliance has fundamentally shifted from 2024, regardless of whether there is ultimately further top-up tax due.centre The Department of Finance has launched several initiatives centred around simplification, including the interest review and examining the SME sector to streamline tax-related matters. It would be hugely beneficial to see tangible results from these reviews. Alongside the tax regime, I would also hope that Ireland – and, in particular, the new government – will address issues such as housing, infrastructure, planning and the funding of higher education. These are the crucial pieces of the jigsaw for Ireland to remain competitive. With falling interest rates, supported by lower inflation rates, I would be hopeful of higher deal flow and activity within the economy. The modified domestic demand (a proxy for the domestic economy) is forecast to grow at circa 2.6 percent annually from 2024 to 2026, buoyed by the continued strength of the labour market. These factors should all provide a good foundation for maintaining Ireland’s competitiveness and attracting inward investment. Overall, Ireland's future looks bright, but we need to ensure we provide a solid framework within which businesses can continue to grow and expand, which should be supported by both infrastructural improvements and the provision of tax certainty. Mark Flood, Director at Renatus Capital Partners Parking the obvious global geopolitical elephant in the room, we are very positive about the outlook for businesses in Ireland in 2025 for three reasons: The wave of inflation we have seen in recent years appears to be receding – the hangover remains for some, but in the main, many have either recovered increased inflation-driven cost to the top line or learned to be nimbler with their costs to counter its effect. There is historically low leverage out there among SMEs – they can withstand a lot. The healthy position of the Irish exchequer. Notwithstanding, there is a cohort of people and companies trapped by higher costs and capped income. Though these are in the minority, we should spare a thought for them. We have the best entrepreneurs in the world, and there are so many companies going global. At the same time, foreign funds are coming to Ireland because they see us as a country of great businesspeople and entrepreneurs. I spoke recently to a restaurant owner in a university town where, unlike others, accommodation has been injected. She told me her labour challenges had been largely solved by people living in her town and working part-time. It would be great if we could solve the accommodation crisis on a broader basis to improve the situation for all. Let’s hope we can solve our housing problem, that global geopolitical developments do not create further challenges and we can continue to drive on in 2025.

Barry McCall speaks to Xeinadin Area Managing Partner Paul O’Connell about the firm’s rapid growth in Ireland, multi-million euro investment programme and the outlook for the Irish economy  Formed just five years ago in the UK, Xeinadin has grown at pace and now has over 135 offices, more than 2,000 professional advisors and 80,000 clients across Ireland and Britain.   “We are ranked eighth in Ireland in terms of turnover,” notes Area Managing Partner Paul O’Connell whose own firm, Cork-based Quintas, joined Xeinadin in late 2023.  Looking back on the history of Xeinadin, O’Connell explains that it was established in 2019 when some 100 accountancy practices came together to collaborate and share resources.  “At the start, it was a group of independent firms agreeing to collaborate, but they worked together to build a core structure to bring the different offices together,” he says. “They set up shared IT systems and HR, compliance, training, business development, marketing and finance functions and, today, we are one ‘Xeinadin’ – one firm with one structure and common systems and policies. It’s not a franchise or a network model. We are one firm with everyone in it collaborating together as colleagues.” Growth ambitions The firm’s growth ambitions received a significant boost when private equity investor Exponent bought into it two years ago. “Xeinadin has been on the acquisition trail ever since,” says O’Connell.  “Thirty offices joined the firm in the last two years, and we see significant further consolidation in the accountancy sector over the next two or three years.  “Exponent has been a brilliant partner to work with and have been hugely supportive. They have really got involved in a positive way to drive the growth and development of the business.” Six months ago, Xeinadin announced a €40 million investment in the Irish market with the aim of further expanding its footprint here with a core focus on taxation, business advisory and audit services for SMEs across the country. “We have already pretty much committed 40 percent of that,” O’Connell says. “We are at the advanced stages of legals and due diligence with five firms and we hope to complete those deals over the coming months. We are well down the road in terms of committing the €40 million.” The business has a strong regional focus, he adds.  “We are already in Dublin, Kildare, Kilkenny, Wexford, Cork, Limerick, Galway and Belfast and we are now focusing on areas like the Midlands, Waterford, Kerry and Mayo. We already have an office in Galway, but we want to expand there. We still have an eye on Cork, Limerick and Dublin as well, of course.  “Other firms looking at consolidation tend to focus on the major cities. We have a different focus because our client base is mainly made up of SMEs and having a local presence is really important to them and to us. We want to be close to them to build lasting relationships.” Location isn’t the only determining factor and Xeinadin is highly selective in the firms it wants to acquire, O’Connell points out.  “We are targeting high quality firms with ambitious partners who want to join us on a journey to drive the business on and avail of the growth opportunities being part of Xeinadin can bring.” The backing of Xeinadin is important in a number of ways. “Most smaller firms aren’t in a position to offer speciality services to their clients. They can offer those services through collaboration with other offices in the group,” O’Connell says.  “That will enable them to become the firm of choice in their locality helping to drive growth. My own office here in Cork has seen its headcount grow by 20 per cent since we joined Xeinadin.” Consolidation in accountancy The trend towards consolidation is by no means limited to the accountancy sector. “We are seeing it across every sector and in our own client base where the volume of transactions has been increasing steadily in recent years. The reasons vary but there are a number of core drivers. Succession planning is one.” As O’Connell sees it, the old model among accountancy practices – whereby a new partner would borrow to fund their way in to replacing a retiring partner – doesn’t really work anymore.  “Socio-economic changes mean that people are buying homes and starting families later in life. They don’t have the access to finance they did in the past. There has to be a different way of accommodating generational change.” He also notes other challenges facing small practices with one or two partners, including the necessity to meet the fast-changing and more complex needs of business clients.  “As part of Xeinadin, firms have access to the resources of the whole group when meeting those needs. With artificial intelligence coming down the line and the requirement to keep pace with issues like sustainability, this is very important.” Recruiting and retaining good employees is equally important says O’Connell, pointing to an example where one of the firm’s offices in a regional location was experiencing difficulties recruiting a Tax Partner.  “They were struggling due to their location,” he says. “We were able to recruit the partner here in Cork and they can now work in a Cork city location for that office. That would not have been possible in a standalone situation.” Similarly, when the Dublin office needed assistance with a large audit job, the Cork office was able to send a team to help out. The firm also offers good opportunities for young accountants, O’Connell says.  “Xeinadin can offer better training programmes and structured graduate programmes small offices just can’t provide. There is also the opportunity to move to other offices, both in Ireland and the UK, where they can gain experience working with a much wider variety of clients.” Economic outlook Turning to the economy and the recent budget, O’Connell is somewhat disappointed with the lack of business supports provided. “There was little or nothing in the budget for business,” he says. “It was very much focused on individuals.” The lack of movement on the hospitality VAT rate was especially disappointing. “I strongly believe the VAT rate should come down to nine percent, particularly for food. This is an absolute necessity. The 13.5 percent rate could be retained for accommodation. We have seen a large number of closures in the industry over the past 12 months and there are many more coming down the track.” Outlining some of the cost challenges facing the industry, he says: “The minimum wage has gone up by 38 percent since just before Covid, for example. Even people working in the industry don’t fully appreciate the cost challenge.  “I visited a restaurant client recently and I went through the costs involved in producing one of their best-selling brunch menu items. By the time I had gone through everything from the raw material and labour and the costs of napkins and energy to the share of overheads, they were left with a profit of 20 cent from the €13 charged to their customers. I hope the new government addresses the VAT rate as a matter of urgency.” He is more optimistic about the outlook for the wider business community in Ireland. “There is real positivity out there in terms of the economy. Cork is flying, but we do need further investment in transport and infrastructure.” Returning to Xeinadin and its future plans, conversations are already underway with other potential targets for acquisition with the remainder of the €40 million.  “Firms are aware of what we’re doing, our approach and the value we bring. It’s not about growth for the sake of growth. It’s about targeted growth in the regions and other specific areas. And firms joining Xeinadin have to align with our values, culture and long-term vision for the business.”

Larissa Feeney’s varied career set her on the path to business success as founder of award-winning online accountancy and business services firm Kinore, writes Barry McCall It may come as a surprise, but the founder and CEO of the Irish Accountancy Awards Online Practice of the Year didn’t set out to be an accountant. Despite accounting being her best subject in school, Larissa Feeney initially wanted to pursue a career in hospitality. “Looking back now, I don’t know if I got the right guidance at school or just didn’t listen to it,” says the Kinore founder and Chief Executive who has built Ireland’s first online, remote-first finance and business services company from revenue of €300,000 in 2017 to €4 million today. “We have seen year-on-year revenue growth of more than 30 percent and we are aiming to grow revenue to €15 million by 2028. We also plan to double our workforce from 75 to 150 employees over the next 18 months,” Feeney says. This remarkable success story began 25 years ago when the Ulster University hospitality graduate decided on a change in career direction. She had been working at a Donegal hotel for the summer following her graduation. “It was almost like Fawlty Towers,” she recalls. “It only opened for the season, and they threw everything at it. We worked morning ‘til night for seven days a week.” Then Feeney spotted an unusual job advert for a Director of First Impressions – receptionist – with Claremount Chartered Accountants in Derry. Not only was she intrigued by the advert, she was attracted by the idea of a nine-to-five job. “The Managing Partner, Gary Heaney, was very much ahead of his time and open to new ideas. That was my first exposure to an accountancy practice. I got to see just how important accountancy is. I saw clients coming in worried about something and coming out feeling okay. The impression I got was that accountants solved their problems for them.” Path to accountancy Her experience at Claremount Chartered Accountants set Feeney on a new path. “I asked the Managing Partner if the practice would put me through the accountancy exams and he said yes.” She qualified as a Chartered Accountant in November 2004 and stayed with the practice until the end of her contract in June 2005. “It was a fantastic journey. Gary Heaney didn’t have to say yes. If he had said no, things might be very different.” Feeney’s decision to leave was prompted by a desire to further her career. “I went into industry. I have always been fascinated by business and I wanted to learn about its inner workings.” She went to work for JML Transport in Donegal. “It was quite a significant business at the time. One of the directors, Bríd McLaughlin, was an unbelievable businesswoman. I gained great insights from her on the minute detail of how to run a business well. That was my first exposure to a woman in a senior position in business and it left an impression on me. She was well able to hold her own in a very tough, very male dominated business in an industry with tiny margins. I never would have got those insights had I stayed in practice.” Fate played a hand at that point. While Feeney was on maternity leave with her second child, the company sold off a substantial chunk of its business.  “While on leave, I had local people coming to me asking if I could do their books and VAT and so on. I asked if I could come back two or three days a week and keep on doing the other work. Bríd McLaughlin said yes. I reduced my time with JML over the years and the company eventually became a client. It happened quite organically, there was never a full stop when I jumped into self-employment.” Concept for Kinore The next significant point in Feeney’s journey came about as a result of another newspaper advert, this time from an accountancy practice in Derry looking for an accountant to take on work on a sub-contract basis.  “The accountant had been ill for a year, and it was coming up to UK self-assessment time in January. He had 30 to 40 clients and was struggling to get their tax returns done on time. I drove over, picked up the files and did the work back at home. It worked very well. He then offered to sell me the book of clients and that was really the start of me building my own client book.” Looking after all those clients from home planted a seed. “They didn’t care where it got done so long as it was on time and correct,” Feeney says.  “That was what started the concept of Accountant Online (the former name of Kinore). The website went live in 2011.  “Client numbers were very low at the time. I was doing everything myself, including blogging and web posts and so on. The first call I got was from a company in Cork that wanted me to do their accounts. It was during the recession, and I probably benefited from that. Companies were looking for cost-effective alternatives for everything at the time.” Roll on five years to a discussion in Derry about Brexit. “One of the people there represented an investor who decided to put some money into the business to take a small stake in Accountant Online,” Feeney explains.  “It wasn’t just about the money. The investor brought skills and advice as well. In 2017, I hired our Director of Sales and Marketing, Rose Kervick. Having her coming in at senior level helped to grow the business.  “An accountant has a very narrow set of skills, and you need a broader set to grow a business. Rose really helped in that area. We invested in digital marketing, online client engagement and so on. It has been a super growth journey since. There have been huge learnings on the way and loads of things I did right and didn’t do right.” Business expansion It has been difficult to keep up with the growth of the business at times, Feeney says. “You have to make sure you have the right structures in place. We are accredited to ISO standards and always make sure the quality is correct in areas like cyber and data security. We are also investing in automation and digitalisation.” For her, the key learning has been the importance of having the right people around you. “When you have the right team around you, you can achieve your goals. If you get that right, everything else is doable. The other one is the importance of our clients. We always put our clients at the centre of what we do. We work in partnership with them, we go on a journey with them. That’s our culture.” Looking after the people in the business is also important. “Working remotely can be hard. You don’t have learning by osmosis and water cooler moments. We are intentionally remote, and we invest massively to do it really well. What you save on office space you need to invest in bringing your people together.” Having grown a multi-million euro business while also being a busy mother to three children, Feeney has some advice for other businesswomen.  “It is not possible to grow a business and raise a family without a massive amount of support. You can’t do it on your own. I have had great support in the business and at home. My husband has been a massive support. You need to delegate, delegate, delegate and have the best people around you in all areas.” Looking ahead, she says the future is “growth, growth and growth.” “I am very lucky to have a young, ambitious and driven senior team in the business. They want to grow the business and help the people in it to reach their full potential. We will grow organically in Ireland and will expand into export markets and through acquisitions.”

Barry C. Melancon, outgoing CEO of AICPA & CIMA, talks to Accountancy Ireland about the need for the profession to learn and adapt at a time of rapid change and unprecedented opportunity Accounting is undergoing change as never before, driven by the evolving needs of global business, regulatory regimes and – above all – the rapid emergence of new technologies that promise to transform the profession in the years ahead. Amidst all this change, a willingness to learn and adapt will be critical for accountants in all sectors. “Now is a time for reflection, particularly for those in our profession at the mid-career stage,” says Barry C. Melancon, CPA, CGMA.  Melancon is the outgoing CEO of the Association of International Certified Professional Accountants, the professional body formed by the American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA). “Younger people are coming in as digital natives and the pace of change in the world today, certainly with regard to technology, requires us to be fully committed to adapting our competencies to keep pace,” says Melancon. “It is not the first time change has been required in our profession – for us, change is a constant – but the leap we need to take today is bigger than ever before, and we will need to adapt faster than ever before.” Committing to change as a constant In his role as President and CEO of the AICPA, Melancon was instrumental in overseeing its alliance with the Chartered Institute of Management Accountants to form the Association of International Certified Professional Accountants (AICPA & CIMA). Established in 2017, the association now has close to 600,000 members, candidates and registrants in 188 countries and territories worldwide. As he prepares to hand over the reins to incoming AICPA & CIMA CEO Mark Koziel, Melancon reflects on his achievements over three decades as AICPA’s longest serving CEO. “Serving the profession over the last 30 years has been a great honour and I have been fortunate to have played a part in its transformation,” he says. “The reality is that the role has been a change management process from the very start. The question at the outset was, ‘how do we create the organisation of the future?’ “My goal was to make the AICPA an organisation that would create a more permissive environment in which the profession could broaden its reach and become more successful – and I do sincerely think we have succeeded in opening people’s eyes to what the profession can be. “At the same time, today – as much as at any other time in the last 30 years – the importance of trust in our profession is paramount. “Trust is our trademark and, no matter how much or how quickly the world around us changes, we must continue to be committed to the trust and objectivity that sets our profession apart, and the value we create for those we work with.” Broad business lens Melancon grew up on the Gulf Coast of southern Louisiana and graduated from Nicholls State University in 1978, majoring in accounting with a minor in government policy.  “I went to university thinking I would be a lawyer and, during my first semester, realised I had a greater interest in business. I took an accounting course and discovered that, if I wanted to have a strong business perspective, accounting would be the best path to take,” he explains. “My perception was that accounting could give me the broadest ‘intellect’ as it relates to business. All the disciplines of business are encompassed in accounting in some form – management, economics, finance – the whole gamut.  “I think this still holds true today. This profession gives us the best and widest lens of all business disciplines.” Melancon began his accounting career in 1979 with a CPA firm in Louisiana before being appointed CEO of the Society of Louisiana Certified Public Accountants in 1987 and, subsequently, as CEO of the AICPA in 1995. “Like many people in our profession, I started out doing accounting, auditing and tax work,” he says. “I had a goal to become a partner in a CPA firm by the age of 25 and, as I’d started school at a very young age and skipped years along the way academically, I succeeded in reaching that goal.” Crucial role as trusted advisors At this early stage in his accounting career, Melancon worked exclusively with small and medium-sized enterprises (SMEs) and not-for-profit organisations. This experience, he says, formed his “early accounting perspective” and instilled an abiding respect for the value of SMEs in economies worldwide and the critical role accountants play in supporting and elevating entrepreneurial endeavour for the benefit of all. “This has been really key for me as as President and CEO of AICPA – creating an environment in which our profession can flourish has been about that wider business lens,” Melancon says. “There are thousands of SMEs around the world. SMEs are the lifeblood of most economies, both established and emerging. Entrepreneurs see opportunities and build businesses, and the expertise of the accounting profession helps them succeed and grow. “Society benefits, but we know SMEs also have high failure rates. They can have a much higher success rate if they walk hand in hand with a professional who really understands all aspects of their business and can act as the purveyor of truth and effective information.” As Melancon sees it, accountants have a crucial role to play as trusted advisors whose strategic and principled guidance is critical in business the world over. “Often, you will find that an accountant working with a business owner knows more about them than anyone else,” he says.  “If the business owner has a health issue or personal challenge, they will ask their accountant, ‘What does this mean for my business? What should I do?’ If they have concerns about competitors, cashflow or business acquisitions, the accountant is the first person they will consult.  “The business owner will understand their business model, the products or services they are selling and the market they are selling to, but their accountant will be the expert in pretty much every other aspect of how to run the business to make it successful.” Elevated role of the profession Beyond the SME environment, accountants in practice and the corporate world are assuming an increasingly prominent role in the boardroom. “Our role right across the board is becoming more strategic. It comes back to that ‘wide lens’ we offer and the higher-level skills we apply to deciphering the complexity of the world we operate in,” Melancon says. “In the corporate environment, leadership is looking to the finance function for more answers, particularly in areas such as environmental, social and governance (ESG) where decision-making is increasingly data driven. “If we look at the audit function, particularly in relation to larger capital market companies, we have moved from purely auditing financial statements to providing third party assurance across a whole range of areas, from ESG to cybersecurity, and this will only continue to expand. “With artificial intelligence (AI) – right now, people are really not sure if they can or should trust it. This will change and it will change rapidly – and we, as a profession, will be key to providing the assurance, objectivity and trust that is needed.  “Our tagline at AICPA & CIMA is, ‘We empower trust, opportunity and prosperity.’ That’s not just about the profession; it’s about society at large.” Emerging business models In tandem with the evolving role of the accountant, the traditional structure of accountancy firms is also changing. “AI, in particular, will fundamentally change the ‘shape’ of accountancy firms and the traditional leverage model,” Melancon says. “With the leverage model, the largest number of employees in accountancy firms have traditionally been at the entry-level – the base of the organisation – where a significant amount of the firm’s transactional activity has taken place. “As people starting out at entry-level progress their careers, they move up to the middle of the organisation, where there is a greater need for cognitive skills and business acumen. “Then, at the top of the pyramid, on the corporate side, you have the C-suite executives and in the firms, you have the partners and owners.  “This leverage model has served our profession well over the years, but, today, the need for all that work at the ‘base’ or entry level is rapidly falling away, in part due to technology like AI and automation. “Instead of pyramid-shaped firms, we will be predominantly ‘fat-middle’ organisations, so we will need to get more people into that middle more quickly with the business acumen and skills they need to build strong relationships with clients.” Robert Stokes award On a recent trip to Dublin to attend the Global Accounting Alliance Board Meeting in late October, Melancon received the Chartered Accountants Ireland Founders Award. The Robert Stokes Medal was presented to Melancon by Barry Doyle, President of Chartered Accountants Ireland, at a special event, in recognition of his outstanding contribution to the accounting profession.  The award represents the characteristics of Robert Stokes, the founder of Chartered Accountants Ireland, a pioneer and a courageous independent thinker, committed to fairness and “levelling the playing field”. Looking ahead to the future of accounting and younger generations entering the profession, Melancon reflected on the need for passion, ambition, commitment and confidence. “Accounting is a profession; it is not just a job. I think this mindset is really important. I don’t think people in any generation can expect to have truly long-term career success unless they understand the need for this professional commitment. Passion is important.” “When I became CEO of the AICPA at 37, a very wise person who headed up one of the largest professional services firms in the world at the time, said to me, ‘Barry, I don’t know you, but I know people put you in this position and my only advice to you is to be yourself.’ “I think the younger generation coming into accounting do bring themselves to the profession. They bring something new and valuable in terms of what they have learned and how they have learned it. “They are more tech-savvy and probably more worldly. They have access to much broader information sets. My message to these younger accountants is to value all of this and to ‘be yourself.’  “You also need to have clear goals and the confidence to speak to others around you about your goals and how to reach them. Seek people’s help and advice, and act on it.  “When I started out in my first role with that small firm in Louisiana, the Partners knew I wanted to be a Partner myself by 25.  “I wasn’t shy about it, and they supported me. They told me, ‘This is what you need to do to get there,’ and I was able to achieve my goal.  “It is important to have the confidence to talk to the people above you in a constructive, honest and positive way about what you want to be – to be yourself, in other words.  “Our profession requires that kind of commitment and, with their skills in technology, younger accountants today can play a very important role in preparing our profession for tomorrow.” *Interview by Elaine O’Regan

In the age of AI and automation, accounting firms face fierce competition. Now more than ever, a strong brand can promote trust, client loyalty and long-term growth, writes Gerard Tannem Competition in the professional services industry is fiercer than ever, and accounting firms must differentiate themselves to thrive. With the advent of software tools and generative AI (genAI), technical expertise is no longer difficult to come by. Building a strong brand has become a critical strategic imperative for accounting firms. A brand isn’t merely a logo or a tagline. Instead, it’s a tool that influences choice by reflecting the value exchanged between a firm and its clients. A strong brand can significantly impact accounting firm’s growth, client loyalty and long-term success. Best of all, when your brand becomes shorthand, it can serve as a unit of value for your accounting firm and clients. Branding as a strategic business tool A brand is far more than a name or visual identity. It’s a powerful business tool that distinguishes a firm from competitors. Technical competence is often assumed when potential clients are looking for an accounting firm. Your ability to create a balance sheet is taken for granted. However, if you build a brand that denotes trust, reliability and the ability to deliver value, you differentiate your accountancy firm in a crowded market. In addition, you create a lot of reassurance for your client that their financials are in safe and capable hands. The benefits for each party in the commercial relationship are evident when we define a brand as a “tool that influences choice by reflecting the commercial relationship between the buyer and the seller and the value they exchange as a result.” This definition resonates particularly well in the accounting profession. An accountant/client relationship is built on delivering high-stakes value, such as compliance, financial insights and strategic guidance. By investing in their brands, accounting firms position themselves as service providers and trusted advisors. Building value for clients A strong brand offers clients peace of mind that their requirements are being met and signals that the accounting firm has the expertise, professionalism and integrity needed to handle sensitive financial matters. A well-established brand reduces the perceived risk of engaging a new firm, particularly for high-value services such as audits, tax strategy or business advisory. Clients often use branding as a shortcut for decision-making, especially when they lack the time or expertise to evaluate each firm deeply. A recognisable and respected brand becomes a proxy for quality, helping clients feel confident in their choices. For example, a client might choose a firm with a strong reputation for sustainability initiatives, or one known for its innovative approach to technology in financial management. The brand acts as a bridge aligning the firm’s offerings with the client’s expectations and values. Creating value for accounting firms Branding can help accounting firms attract and retain clients, sustain pricing power (no small consideration, as genAI continues to eat into the margins of many industries) and establish market positioning. A strong brand creates a foundation for client loyalty. This translates into repeat business and referrals. It can also command a premium; clients are often willing to pay more for a firm whose brand reflects superior quality or specialised expertise. Moreover, branding can unify a firm's internal and external stakeholders around a common identity and mission. A well-defined brand helps staff understand the value proposition they deliver to clients, fostering a sense of pride and commitment. This internal alignment can be critical for larger firms with multiple service lines, helping ensure consistency across various client interactions. A competitive imperative For accounting firms, branding is no longer optional. It is a competitive imperative that aligns the firm’s capabilities with the needs and values of its clients. By building a strong brand, firms can influence client choice and foster loyalty, and position themselves for long-term success in an increasingly competitive marketplace. Investing in branding isn’t just about aesthetics or advertising. It’s about building a sustainable foundation for growth and creating value for both the firm and its clients. In an industry built on trust and relationships, a strong brand is the bridge connecting expertise with client confidence. For accounting firms ready to differentiate themselves, branding is not just a strategic option. It’s the key to thriving in today’s market. Gerard Tannam is the founder of Islandbridge Brand Development. His book, Branding for SMEs: A Guide, is published by Chartered Accountants Ireland and is available for download.

Earlier this year the FRC published an update to its Ethical Standard for auditors, effective from 15 December 2024. The updated ethical standard simplifies the existing ethical standard and provided additional clarity in a limited number of areas. the new standard takes into account recent revisions made to the international IESBA Code of Ethics. there is a new targeted restriction on fees from entities related by a single controlling party. Following feedback to their consultation, the FRC have amended the proposals to ensure that the requirements in the standard are better targeted and proportionate. For example, additional requirements in respect of ethical breach reporting by audit firms to the regulator have been removed. With regard to tax services provided to the controlling shareholders of unlisted companies the FRC is enhancing the independence risk assessment around these services rather than specifically prohibiting them. Alongside the revised Ethical Standard, the FRC has also released guidance for auditors on the application of the Objective, Reasonable and Informed Third Party test, which forms a key part of many requirements in the Ethical Standard. Read the updated Ethical Standard. Read the feedback statement and impact statement. CAI responded to the FRC consultation and you can read our response here.  

Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month. In developments since the last edition, Chartered Accountants Ireland has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft ‘Climate-related risks and Other Uncertainties in the Financial Statements’.  The Pensions Authority has published a dedicated website page for information on the Digital Operational Resilience Act (DORA). Read more on these and other developments that may be of interest to members below. Audit and Assurance IAASA has published Inspection Insight Series 5: International Standard on Quality Management Ireland 1 (ISQM 1). This paper sets out the key requirements for audit firms relating to ISQM1, IAASA’s findings from their quality assurance reviews and areas of good practice noted by IAASA.  The Financial Reporting Council (FRC) has published its annual report on the quality of major local audits, which also sets out how it will continue to support the local audit system to recover from delays in the publication of audited accounts. The FRC has published its annual Audit Market and Competition Update for 2024. The report shows that in the UK the Big Four audit firms continue to dominate the market earning 98% of FTSE 350 audit fees and 90% of all PIE audit fees. However, challenger audit firms’ share of FT350 audit engagements grew to 13% in 2023. The FRC is evolving its approach to audit market competition, addressing stakeholder concerns such as differences in quality between the largest and smaller audit firms. You can access the report on this link. Earlier this year the FRC published an update to its Ethical Standard for auditors, effective from 15 December 2024. The updated ethical standard simplifies the existing ethical standard and provided additional clarity in a limited number of areas. the new standard takes into account recent revisions made to the international IESBA Code of Ethics. there is a new targeted restriction on fees from entities related by a single controlling party Read more and access the revised standard here. Financial Reporting Chartered Accountants Ireland has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft “Climate-related risks and Other Uncertainties in the Financial Statements”. The Exposure Draft, which proposes eight examples illustrating how entities may apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements, was issued by the IASB in July 2024. The UK Endorsement Board has also published its Final Comment Letter and Feedback Statement in response to the same Exposure Draft. EFRAG, the European Financial Reporting Advisory Group has published its October 2024 update which summarises public technical discussions and decisions taken during the month. The Financial Reporting Council (FRC) has updated their suite of factsheets addressing FRS 102. For more information on this please see our news item here. The FRC has published its Annual Review of Corporate Governance Reporting. EFRAG has published its Final Comment Letter on the IASB's Exposure Draft Translation to a Hyperinflationary Presentation Currency - Proposed amendments to IAS 21. EFRAG has published its Final Comment Letter on the IASB's Exposure Draft Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures. The UK Endorsement Board has also published its response to this Exposure Draft. EFRAG’s discussion paper “The Statement of Cashflows objectives, usages and issues” has been published, with the objective of listing the perceived issues with cash flow statements presented in accordance with IAS 7. Comments are requested by EFRAG by 15 May 2025. The International Accounting Standards Board has published its November 2024 update and podcast. Insolvency The CCAB-I Insolvency Committee has recently published Technical Alert 03/2024 Succession Planning for Insolvency Practitioners. Insolvency appointments are taken in a personal capacity by an Insolvency Practitioner, who has an obligation to ensure that cases are properly managed at all times, and to have appropriate contingency arrangements in place to cover a change in the Insolvency Practitioner’s circumstances. This Technical Alert maps out a succession plan for an Insolvency Practitioner and covers some of the high-level considerations and discussion points to be considered by Insolvency Practitioners. Sustainability The European Commission has published a set of frequently asked questions (FAQs) to support stakeholders in the implementation of the EU taxonomy, a classification system for sustainable economic activities. The FAQs provide technical clarifications regarding various elements of the EU taxonomy. Examples of matters included are the application of general taxonomy requirements and technical screening criteria for specific activities included in the Taxonomy Climate and Environmental Delegated Acts and they also address the generic ‘do no significant harm’ (DNSH) criteria that ensure that economic activities contributing to one of the environmental objectives set out in the Taxonomy Regulation do not cause significant harm to any of the other environmental objectives. The 2024 edition of KPMG’s Survey of Sustainability Reporting, which surveyed 5,800 large companies across 58 countries showed that GRI usage has risen to 71%. The survey also identified an increasing prevalence of companies obtaining independent assurance on their sustainability reporting as well as an increase in the number of companies carrying out double materiality assessments, both of which are practices that will soon become mandatory for certain companies in the European Union. A recording of EFRAG’s recent webinar “ESRS for Non-EU Groups” is available to view via the EFRAG website. The IFRS Foundation has published some educational material entitled “Sustainability-related risks and opportunities and the disclosure of material information”. The publication is focussed on helping companies understand how the concept of sustainability-related risks and opportunities is described in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, including how these can arise from a company’s dependencies and impacts. The International Sustainability Standards Board (ISSB) has published its November 2024 update and podcast. As many jurisdictions worldwide make decisions locally regarding whether (or how) they adopt ISSB reporting standards, the IFRS Foundation continues to compile a list of the ongoing and completed Jurisdictional sustainability consultations. This is a useful reference point for anyone trying to establish the reporting requirements of various countries worldwide. The IFRS Foundation has published a recording of its fifth Perspectives on sustainability disclosure webinar which is titled 'The state of assurance for sustainability disclosures'. Accountancy Europe has published its November 2024 Sustainability Update. Digital, Cyber, Artificial Intelligence (AI), Crypto The Pensions Authority has published a dedicated website page for information on the Digital Operational Resilience Act (DORA). Central Bank of Ireland (CBI) Governor of the Central Bank of Ireland Gabriel Makhlouf was invited to speak at a Financial Services Ireland event on 20 November to talk about The Role of Financial Services in the Irish Economy. Legislation You can read our recent news item on the signing and part commencement of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act, 2024. We have selected those provisions which we think will be of most interest to our members and have identified what has been commenced on 3 December 2024 and what awaits commencement in 2025. Click to go to the CEA website where you can read about the key changes introduced by this Act which concern the Corporate Enforcement Authority . Other Please click to read the latest from the Corporate Enforcement Authority December newsletter and click here if you want to subscribe to the CEA newsletter. The Financial Reporting Council (FRC) has published its Annual Review of Corporate Governance Reporting 2024, providing important insights as companies prepare to implement the revised UK Corporate Governance Code from January 2025. The Pensions Authority has published information on the Annual Compliance Statement (ACS) for 2024 that is provided for under the Pensions Act.  The form to be used for the ACS is available under Related File(s) on their website with a deadline for completion of 31 January 2025. Accountancy Europe has issued its December 2024 SME update.     This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.

from the Institute’s Professional Accounting team on the signing and part commencement of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act, 2024 (2024 Act ) Introduction The 2024 Act was signed into law on 12 November 2024. It makes changes to the Companies Act, 2014 (CA 2014). On behalf of its members, the Institute responded in 2023 to a Department of Enterprise, Trade and Employment (DETE ) consultation on proposals to enhance the Companies Act 2014 which informed much of the provisions of the 2024 Act. Below we set out some of the new provisions which may be of interest to our members. Readers might note that there are other new provisions in the 2024 Act which are not outlined here. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 (Commencement) Order 2024 (SI 639/2024) commenced certain of the provisions from 3 December 2024. A DETE December 2024 press release clarifies that the provisions not commencing on 3 December 2024 are those that require technical updates to be made to the Companies Registration Office (CRO)’s  computer systems to facilitate the changes proposed. These provisions relate to CRO prescribed forms and the removal of the automatic loss of audit exemption for small companies on a first occasion of failure to file an annual return.  DETE intends to commence these provisions in 2025. Audit exemption (not yet commenced) Once commenced, one of the most significant changes for our members is to the rules regarding loss of audit exemption. This provision will replace the automatic loss of the audit exemption for a first late filing with the CRO with a graduated regime where a company may file late once in a five-year period without the loss of audit exemption. The Institute is particularly delighted to see this provision as it is an area on which we have made numerous representations to the CRO and the DETE on behalf of members over the last number of years. Readers should note that the change does not extend to small group situations, and while there are some exemptions it is still generally the case that if one member of a small group fails to file its annual return on time, none of the small group companies is entitled to the audit exemption for the following two financial years. Registered office agent /electronic filing agent (not yet commenced) There will be changes in relation to a company’s registered office agent and electronic filing agents. These include the application to the Registrar of Companies (“Registrar “) in the prescribed form for approval to act as an electronic filing agent (EFA) and a registered office agent. Prior to the 2024 Act, application was made to the Registrar using an administrative form. Trust and Company Service Providers (TCSPs) will only be approved as a registered office agent or an EFA where they have a TCSP authorisation under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. Approval to act as an EFA or registered office agent will be withdrawn where a company ceases to hold a TCSP authorisation.  Evidence of situation of registered office (commenced) The 2024 Act includes a new section to provide that the Registrar may require evidence to verify a company’s registered office address when a company is applying to register its constitution or submitting a change of registered office address. Where the Registrar has made such a request, the Registrar will not register the documents unless such evidence is provided. Receivers (not all provisions commenced) The 2024 Act makes some changes in relation to receivers. Extension of the existing power of the court to fix remuneration of a receiver has been commenced. Matters to be considered for receivers under these new provisions include time spent, complexity of the case, exceptional responsibility on receiver, effectiveness of receiver, value, and nature of the property. This mirrors existing provisions for remuneration for liquidators in the CA 2014. Provisions have also been commenced concerning entitlement to remuneration of receivers by way of a relevant percentage, by reference to time spent or otherwise by reference to any method or thing. These new provisions are in line with existing provisions in the CA 2014 concerning entitlement of liquidators to remuneration.  Further information will be required on Form E8 which is filed upon the receiver’s appointment. The further information includes details of nature of assets, date and nature of appointment, information regarding future trading where practicable, and other prescribed information (not yet commenced). Members, creditors, and prescribed persons can request information regarding receivers’ terms and fees, and requests must be dealt with within 7 days. (not yet commenced). Also, the time limits for filing the receiver’s abstract (Form E9) upon cessation of acting as receiver and notice of cessation of receiver (Form E11) will now be 7 days. (not yet commenced). SCARP (not all provisions commenced) The technical changes to SCARP legislation have largely been commenced from 3 Dec. The ones which have not yet been commenced mainly relate to provisions for notices in ” prescribed form “. The SCARP provision has been commenced whereby the court can ask the process advisor (PA) for a written report stating the reasons for not doing so where the PA did not make use of the services of the staff and facilities of the company to which they were appointed where the court is considering any matter relating to the PA’s costs, expenses, and remuneration. Strike off and restoration (commenced) Provisions for 3 new grounds for strike off have been commenced (sections 58-64) (failure to notify of a change in registered office, no current company secretary recorded and failure to deliver beneficial ownership information). Readers may be interested to note that these three new grounds will not give rise to disqualification of the directors and the new provisions include the steps to be taken to avert continuation of the strike off under the three new grounds. IAASA (commenced) Provisions have been commenced giving IAASA power to issue an interim direction imposing restrictions on a statutory auditor that a possible relevant contravention has been committed and that it is appropriate in the public interest to do so. IAASA will invite and consider submissions received from the restricted person and will within 21 days either confirm vary or revoke the interim notice. The restrictions remain in place until the investigation is complete. An interim notice will be reviewed every 6 months or a shorter period and automatically expires after 18 months unless a further interim notice is issued. Corporate Enforcement Authority (CEA) - Enhanced powers (commenced) The following provisions have been commenced: - -Under the 2014 Act, auditors must notify the CEA when they form the opinion that certain offences have been committed. New provisions oblige the auditors, if requested by the CEA, to furnish the CEA with copies of documents and to certify them as true copies or extracts; -Provisions allowing for the CEA to share otherwise confidential information with additional statutory bodies such as the Data Protection Commission and the Charities Regulatory Authority; -Provisions whereby it is a category 2 offence for a person to obstruct or interfere with an officer of the CEA . For a category 2 offence , on summary conviction, punishment is a class A fine which is a fine not exceeding €5,000 or imprisonment for a term not exceeding 12 months or both, or on conviction on indictment, to a fine not exceeding €50,000 or imprisonment for a term not exceeding 5 years or both; -Greater information gathering powers (including access to certain court orders and mandatory notification requirement in certain instances). Electronic meetings (commenced) Electronic participation in general meetings has been put on a permanent statutory footing and there are now provisions for notices, quorum and proceedings and virtual voting at such meetings. Readers may recall that in December 2023 these provisions which were introduced during the pandemic were temporarily extended to 31 December 2024. Note that the new provisions do not apply to creditors meetings or meetings to consider schemes of arrangements. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages

UK  Recent communications with Insolvency Practitioners (IPs) authorised to take insolvency appointments in the UK have been advised of Council’s decision to revoke its status as a Recognised Professional Body (RPB) in the UK. This means that Chartered Accountants Ireland will not be authorising insolvency practitioners in the UK from 1st January 2025. The Professional Standards department has been communicating with these IPs to assist in the application process and to ensure a smooth transfer to an alternative RPB.   Ireland   In addition to UK insolvency regulation, Council has also decided to cease the proactive monitoring of members providing insolvency services in Ireland. Members will no longer be required to hold an Insolvency Practising Certificate (IPC) to take insolvency appointments in Ireland. To reflect the above policy change regarding IPCs, appropriate amendments have been made to the Institute’s Public Practice Regulations. Insolvency services will be included within the general definition of ‘accountancy services’ (therefore requiring the holding of a general ‘Practising Certificate’). This means that the Institute may review insolvency-related work of individual members at its discretion. These changes remain consistent with the provisions of section 633 of the Companies Act, 2014 which requires liquidators to hold a current practising certificate issued by a Prescribed Accountancy Body or specified other bodies. It is also consistent with the approach to insolvency regulation applied by other Prescribed Accountancy Bodies.

The Institute has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft “Climate-related risks and Other Uncertainties in the Financial Statements”. The Exposure Draft, which proposes eight examples illustrating how entities may apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements, was issued by the IASB in July 2024. While highlighting its support of the overall objectives of the IASB, as well as the usefulness of illustrative examples in helping entities report on areas of uncertainty, the Institute’s Financial Reporting Technical Committee noted some concerns in relation to the way in which some of the examples are drafted. In addition to this, the Institute called for more guidance and analysis relating to determining the level of adjustment required to terminal value and discount rates in relation to medium to long term impacts of climate risk. The Institute’s response can be read in full here. 

The Financial Reporting Council (FRC) has updated their suite of factsheets addressing FRS 102. These factsheets provide additional guidance to assist with the application of FRS 102 and include three new factsheets. Of particular interest to preparers and other stakeholders will be the new factsheets published which address the new accounting requirements for revenue recognition and lease accounting (effective for periods commencing on or after 1 January 2026). In addition to the new factsheets, five factsheets have been updated and two factsheets (which related specifically to the 2017 Triennial Review) have been withdrawn. Following the additions, updates and withdrawals, there are now eight staff factsheets in issue which are available on the FRC website; Factsheet 3 – Statement of cash flows Factsheet 4 – Financial instruments Factsheet 5 – Property: Fair value measurement Factsheet 6 – Business combinations Factsheet 7 – Transition to FRS 102 Factsheet 8 - Climate-related matters Factsheet 9 – Initial application of the Periodic Review 2024 amendments Factsheet 10 – Revenue from Contracts with Customers Factsheet 11 – Lease accounting for lessees

Agents now have until 6 December 2024 to send HMRC details of their agent codes. In October HMRC emailed agents asking them to provide details of their agent codes by 8 November 2024 via an online form. Last week HMRC emailed a reminder to agents to submit this information which also advised that the deadline is now 6 December 2024.   The email contains details of how to find your agent code and how to complete the form. HMRC  advises that if an agent has already completed and submitted their information to ignore this reminder.   

HMRC is hosting a Making Tax Digital (MTD) for income tax event at their Croydon Regional Centre office later this week on Thursday 5 December 2024. Read on for more details. Note that events are being planned across the UK with one to be held in Belfast in Spring 2025. Event details: Location: HMRC, 1 Ruskin Square, Croydon, CR0 2WF.  Time: 11am start – 3pm finish.  The event is for agents and software developers who have clients who will need to use MTD for Income Tax, to help you get ready for when it becomes a legal requirement from April 2026. At the event you will: Find out more about the testing phase, including the extra support on offer, Have access to hands-on support to sign up to testing, and Be able to ask HMRC your MTD questions. This event has limited spaces so if you are interested and want to attend please email mailboxmakingtaxdigital@hmrc.gov.uk to secure a space. By emailing HMRC, you are agreeing to be contacted by HMRC before, during and after this event.   

In this week’s miscellaneous updates, HMRC has published updated guidance on the abolition of the furnished holiday lettings (FHLs) rules. The latest Agent Update is available as is the most recent News and Information Bulletin both of which contain important guidance on filing 2023/24 self-assessment returns where overlap relief is being deducted as part of the transition year to the tax year basis. The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place. The most recent minutes/notes from HMRC’s Guidance Strategy Forum are also available. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected.   Updated FHL guidance  HMRC has published updated guidance on the tax rules for the abolition of FHLs. The purpose of the updated guidance is to make clear that the intention is to remove the specific tax reliefs currently available for FHLs, hence there will not be changes to other rules. For example, holiday accommodation, whether previously qualifying as a FHL or not, will remain standard-rated for VAT.  Latest Agent Update  Agent Update: issue 125 is now available. Get the latest guidance and information including: reporting rules for digital platforms with the first reports due 31‌‌‌ January‌‌‌ 2025, completing self-assessment tax returns for student and postgraduate loan borrowers, self-assessment top tips for agents including guidance on basis period reform and a request to submit overlap relief applications early and preferably by 31 December 2024, using the payrolling benefits in kind service for agents, and  an update on the new requirements for safety and security declarations.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Minutes from the latest Northern Ireland Joint Customs Consultative Committee, which the Institute participates in, have been published together with the slide deck used. These provide useful information on the forthcoming changes to the movement of consumer and freight parcels from Great Britain to Northern Ireland from 31 March 2025. It has also been confirmed that the Government’s single trade window has been paused and HMRC has recently published a range of guidance and communications particularly relevant to customs transactions in Northern Ireland.  Single trade window paused  The single trade window (STW) will be a UK Government service with the objective of providing a gateway between businesses and UK border processes and systems. The system will essentially  allow users to meet their import, export and transit obligations by submitting information once, and in one place. This was due to commence its initial phase in 2024. However it has now been confirmed by the Exchequer Secretary to the Treasury in Parliament that delivery is being paused. An update will be provided as part of the next phase of the Spending Review which is expected to report in late Spring 2025.  New guidance for customs  Earlier this month the following customs guidance relevant to Northern Ireland was published by HMRC: New guidance for customs Earlier this month the following customs guidance relevant to Northern Ireland was published by HMRC: Moving goods from Great Britain to Northern Ireland under the Windsor Framework: https://www.gov.uk/guidance/internal-market-movements-from-great-britain-to-northern-ireland, UK Internal Market Scheme process for using the UKIMS entry in the declarant’s records to move goods when the new Windsor Framework arrangements come into effect: www.gov.uk/guidance/apply-to-make-an-entry-declaration-in-your-records-under-the-uk-internal-market-scheme, Notification of presentation waiver: www.gov.uk/guidance/apply-for-a-notification-of-presentation-waiver-for-goods-moving-from-great-britain-into-northern-ireland, Categorisation: www.gov.uk/guidance/categorising-goods-for-internal-market-movements-from-great-britain-to-northern-ireland, Safety and security requirements on imports and exports, Register to use the Import Control System 2, Make an entry summary declaration using the Import Control System 2, Register to make an entry summary declaration in Northern Ireland, Making an entry summary declaration, Certified traders and tax representatives — EU trade in duty-paid goods, How to claim a repayment of import duty and VAT if you've overpaid, and Get proof your goods have Union (EU) status. Miscellaneous guidance updates and publications  Pay into your Customs Declaration Service cash account, Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service, Report a problem using the Customs Declaration Service, How to claim a repayment of import duty and VAT if you've overpaid, Search the register of customs agents and express operators, and Check if you can apply for other transit simplifications with consignor or consignee status,  

Integrity due diligence is essential for identifying risks, protecting reputations and ensuring compliance in today’s evolving business landscape, explains Deirdre McGrath Integrity due diligence (IDD) identifies risks that traditional due diligence might miss by using a risk-based approach to review the compliance and integrity of potential counterparties. Key risk categories reported on include financial health, anti-bribery and corruption, political connections, environmental impact, reputational risk (e.g. adverse media) and labour/human rights issues. Trust, reputation and risk mitigation are crucial in today's fast-paced global business environment. Knowing your customers, suppliers or contractors before and during business engagements is essential for making informed decisions and managing risks effectively. Public scrutiny and evolving regulations are putting increasing pressure on companies to identify and mitigate risks with business partners, including suppliers, customers, agents and employees. These risks encompass sanctions, financial sustainability, environmental impact, forced labour and human rights abuses. New EU regulations mandate supply chain mapping and human rights risk assessments. For instance, in March 2024, the European Council and Parliament agreed to prohibit products made with forced labour. IDD reviews can identify these risks.  PwC’s 2024 Global Economic Crime Survey revealed that only 50 percent of Irish companies had a third-party risk management programme. IDD is crucial for risk mitigation, helping organisations understand their counterparties and make informed decisions. For companies, IDD can identify ownership structures, business activities, clients, partners, financial performance, reputation, misconduct, disputes, litigation, key stakeholders, sources of funds and political connections. For individuals, IDD can examine career history, corporate affiliations, directorships, shareholdings, adverse media, litigation, financial positions, reputation, financial trends, insolvency, political connections, donations and sources of wealth. The UK’s Financial Conduct Authority (FCA) recommends open-source internet checks as “good practice” for human resources and high-risk customer research. Benefits of IDD IDD is essential for an organisation’s risk assessment process, helping meet obligations related to anti-money laundering, bribery, corruption and environmental, social and governance requirements under the Corporate Sustainability Reporting Directive and other regulations, such as those issued by the Central Bank of Ireland. It supports due diligence and compliance for mergers, acquisitions, investments and joint ventures. When adverse issues are identified, businesses can make informed decisions to either withdraw interest or implement mitigating procedures to protect their integrity and reputation. IDD also aids in reputation and brand protection by highlighting risks associated with existing or potential suppliers in relevant jurisdictions. It provides strategic, competitive intelligence by gathering information on competitor strengths and weaknesses, impacting growth opportunities and long-term strategy through industry trend analysis. In legal proceedings, IDD can play an important part in securing financial orders by identifying evidence to recover misappropriated funds. For higher-risk third parties, IDD can form part of a legal defence, demonstrating that a corporate body took “all reasonable steps” and “exercised due diligence” to avoid bribery and corruption offences. There are several use cases for IDD, which are outlined below. Know your client, supplier or employee: Conduct detailed reviews of business partners or potential hires, focusing on key risks such as financial performance, reputation (both positive and negative), and ESG risks. CSRD: Help clients report using the European Sustainability Reporting Standards (ESRS) and support company and auditor determinations that a topic/sub-topic may or may not be material to a company. Fitness and probity diligence for regulated firms: Perform background checks on individuals to support initial and ongoing fitness and probity certifications for key and customer-facing roles under the Central Bank of Ireland’s Individual Accountability Framework. Global sanctions screening: remediation screening, support for sanctions investigations and ongoing monitoring or advisory services for sanctions policies, procedures and processes. Mergers and acquisitions diligence: Identify information to evaluate businesses, assess potential value, and understand legal risks associated with transactions, including liability, debarment, prior conduct, ownership and management conflicts of interest. Joint ventures, partnerships, or business alliances: Understand significant risk relationships, especially in higher-risk countries, and assess potential sources of funding, wealth or media findings. Business divestment: Evaluate who you are doing business with or selling your business to, ensuring informed decisions. Investigations: Support investigations by identifying personal, business or social connections between various parties of interest. Asset tracing: This involves identifying assets held by companies or individuals, such as equity, property, and other lifestyle assets. It helps banks pursue defaulting borrowers, supports divorce cases, assists in pre-civil litigation and identifies evidence of fraud or misappropriation of assets. Looking to the future: recent legislative developments Companies should be aware of upcoming European directives, specifically the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD). These directives will increase the focus on due diligence within global operations and supply chains to prevent adverse human rights and environmental impacts. They will also drive more detailed reporting, disclosure requirements and transparency around business processes. Findings from IDD open-source intelligence searches and related human-sourced intelligence resources can help clients avoid penalties for non-compliance with these new regulations. These four key steps will help organisations get ready for IDD: Prepare: start preparing early to ensure compliance with upcoming legislation. Assess: determine if and how the new legislation applies to your company or group of companies. Appoint: designate an internal lead or project team to develop due diligence policies, procedures and infrastructure. Ensure timely implementation of necessary changes. Decide: choose the due diligence process that best suits your requirements. Deirdre McGrath is a Partner at PwC 

Eva Sheehy explores how Irish businesses are leading in ESG readiness, with CEOs confident in meeting 2025 deadlines and reaping financial and strategic benefits As deadlines for environmental, social and governance (ESG) reporting rapidly approach, Irish businesses are intensifying their focus on robust ESG programmes. In the EU, reports are due to start appearing from the largest companies in early 2025, and this reporting wave will require independent assurance on ESG and human rights matters. Recent findings from the KPMG CEO Outlook 2024 illuminate the critical importance of these initiatives, highlighting a strong conviction among Irish CEOs that ESG practices hold financial benefits. Global context vs Ireland's position Globally, the situation is challenging. KPMG research has found that only 29 percent of companies worldwide have the ESG policies, skills and systems in place to be ready for independent ESG data assurance despite looming deadlines. The gap between leading companies and those in the early stages of assurance readiness is also widening, with skills and resources seen as the single biggest challenge for all levels of maturity. However, here in Ireland, we are in a much stronger position. Recent findings from the KPMG CEO Outlook 2024 highlight that 60 percent of Irish CEOs report that their organisation possesses the necessary capability and capacity to meet these stringent reporting requirements – preparedness that is crucial as companies navigate the complex landscape of ESG reporting, which demands transparency, accuracy and accountability. The clock is ticking. In preparing for ESG assurance, businesses are discovering that as they advance, there’s always more to understand and accomplish. This commitment is worthwhile – boards are placing greater emphasis on ESG assurance and leaders are noticing a broader array of benefits as practices associated with it become integrated into their businesses. Robust ESG reporting also provides a framework for continuous improvement as companies set ambitious targets, monitor progress and make informed decisions that drive long-term value creation. Assurance services play a critical role in this process, providing independent verification of ESG data and enhancing the credibility of the reported information. The business case for ESG initiatives The business case for ESG initiatives is increasingly well-defined. Recent research from KPMG also shows that 63 percent of organisations in Ireland are fully embedding ESG into their strategies to create increased value. The return on investment is also predicted in the relatively near future, with 66 percent of CEOs in Ireland believing such robust ESG programmes will enhance their financial performance over the next five years. This integration reflects a broader trend towards sustainability and ethical governance, which not only meets regulatory requirements but also aligns with investor and consumer expectations and underscores the growing recognition of ESG’s vital role in business strategy and its potential to drive value and sustainability for stakeholders. The critical role of robust ESG reporting and assurance As reporting deadlines loom, the importance of robust ESG reporting and assurance cannot be overstated. Accurate and transparent reporting is essential for building trust with investors, customers, and employees. It demonstrates a company’s commitment to sustainability and ethical practices, which are increasingly important criteria for stakeholder engagement. Skills and resources a key challenge Obtaining appropriately skilled and experienced people will also be a challenge. Many businesses are looking for the same skillsets at the same time, and those skills are very specialised. On top of that, the further businesses advance in the process, the more skills requirements they discover they will need to reach full ESG reporting and assurance maturity. This often involves not only hiring new talent, but also investing in extensive training for existing employees to ensure they are up-to-date with the latest standards and practices in ESG reporting. Ultimately, Irish businesses must remain adaptable and proactive as the landscape evolves, requiring a dynamic approach to skill development. This is essential to meet the stringent requirements and to achieve the long-term benefits of robust ESG practices. Eva Sheehy is Director in the ESG Reporting and Assurance team at KPMG

Kate Flanagan shares five expert tips to redefine success, celebrate progress, and climb with confidence on your unique career journey Feeling stuck on the never-ending rungs of the career ladder? Don’t worry, it happens to the best of us. But before you lose hope, remember that the ladder might not be as rigid as it seems. Here is the truth about career progression – it’s not a one-size-fits-all climb. For some, reaching the next rung means a promotion and a new title. For others, it’s about tackling bigger challenges or mastering new skills. The key lies in defining what “upward movement” means for you. Here are five tips to help you climb that career ladder with confidence. 1. Goal setting on the ladder Setting clear goals, big or small, is vital throughout your career journey. What do you want to achieve on the next rung of your ladder? Is it a specific promotion, a certain skill set, or a leadership role? Defining your goals helps you visualise the path ahead. 2. Celebrate every step up Acknowledge and celebrate your accomplishments! Taking a moment to reflect on how much you have learned and grown since you started climbing the ladder is incredibly motivating. You have climbed rungs already, and you can still climb many more. 3. Explore opportunities on your current rung Before aiming for the next step, assess your current position. Is there potential for taking on additional responsibilities? Training programs to boost your skillset and help you climb higher? Talk to your manager and see if there is room for internal growth. 4. Network up and down the ladder Your professional network is your career lifeline. Building strong connections with colleagues and mentors, both above and below you on the ladder, is crucial. These connections can offer guidance, open doors to new opportunities, and even become supporters on your climb. 5. Push yourself beyond the rungs Step outside your comfort zone and embrace challenges. Public speaking, attending networking events, or simply speaking up in a meeting – these experiences push you professionally and equip you for the next rung of the ladder. Remember, your career path is unique. Use these tips to define success on your terms and climb that perfect career ladder – the one that leads you to your specific goals. Kate Flanagan is a Tax, Treasury, and Practice Partner at Barden

The CCAB-I Insolvency Committee has recently published Technical Alert 03/2024 Succession Planning for Insolvency Practitioners. Insolvency appointments are taken in a personal capacity by an Insolvency Practitioner, who has an obligation to ensure that cases are properly managed at all times, and to have appropriate contingency arrangements in place to cover a change in the Insolvency Practitioner’s circumstances. This Technical Alert maps out a succession plan for an Insolvency Practitioner and covers some of the high-level considerations and discussion points to be considered by Insolvency Practitioners.