Blurred lines between WhatsApp use for personal communication, interaction with colleagues and business purposes can create serious risk for organisations and employers. TerriSue Cosgrove explains why Of late, WhatsApp has had a starring role in dismissals that end up in the Labour Court, official enquiries across public and private sectors and even criminal proceedings. From communication deemed unprofessional or unfortunate that damages reputations, to comments or disclosures that merit court or employment law proceedings, many are unaware of the extent to which WhatsApp messages can be risky in the workplace. From an employment law perspective, employers should be aware that they may be found vicariously liable for a claim where an employee says something problematic – for example, discriminatory or defamatory -- in a WhatsApp message. Lately, we have seen many cases coming before the Workplace Relations Commission (WRC) involving inappropriate messaging, with serious consequences, including job loss. In these cases, businesses are typically held responsible and may face WRC fines. Privacy Often when employees use WhatsApp, either on their personal phone or a business device, they are unaware their messages can be accessed and may be disclosed to judge their conduct at work.  Any message in connection with work duties, or within a WhatsApp group – even one only sometimes used for legitimate work purposes – may create liability for either party. There is some ambiguity, and employees can reasonably expect privacy, but where WhatsApp is commonly used for work purposes, not all messages will be deemed private if contentious issues arise. While messages may be encrypted, employees must remember that all written, video and audio communication can be recorded and shared. We have a misplaced belief that instant messaging disappears without a paper trail. With any work gossip shared digitally, however, it takes only a second for someone to take a screenshot to send to a line manager. And, if you use WhatsApp on a company phone, your employer can legitimately access files you send, via device management software, network monitoring or company wi-fi. Policy The practical importance of having a social media and/or electronic communications policy in the workplace cannot be underestimated. Controls to manage the online security risks of a Bring Your Own Device (BYOD) situation are also important. The company’s privacy or IT policy should inform employees about the extent to which their company devices are monitored, and that all monitoring is undertaken in line with internal policy and data protection principles.  It should also ask staff not to use private communication channels for work purposes, both to protect sensitive company data and employees themselves. A code of practice on the Right to Disconnect policy legislation should be adhered to. Continuous messaging on platforms like WhatsApp, especially outside of working hours, can prevent employees from fully disconnecting, leading to stress and burnout. Using personal WhatsApp for business, especially on public wi-fi, makes companies vulnerable to loss of business-related data on employee-owned devices. Phones must be appropriately protected with encryption, security updates, auto-screen lock and password protection.  Staff might also make unauthorised disclosures of confidential company or client information. Whether deliberately or inadvertently, this can damage the business directly, or allow client claims for breach of confidence or data. Again, this highlights the need for a strong communication policy. It is essential to not only have a policy but also train employees regularly on its use. Clear policies, robust procedures and staff training on appropriate communication and behaviour will minimise risks. This should include notifying employees that WhatsApp groups, and their use, can be monitored on work phones and that misuse can result in disciplinary action – even if the use is not specifically created or sanctioned by the employer. Own it If an employer actively encourages or allows employees to use social media as a mechanism to store business contacts, they must ensure they have control over how this information is used, especially if the employee quits work. Where an app or site is used primarily for business purposes, the employer has a stronger case in arguing ownership of it. Policy documents can make clear statements that the employer owns a social media account, and/or the data or intellectual content on it, as well as the monitoring in place to protect the legitimate interests of the business, such as client confidentiality and reputation. Companies rarely have an idea of the WhatsApp groups in operation in their organisation, or who has access to them, and 'profiles' are often just a mobile phone number. It is likely that former employees, contractors or customers may have ongoing access to business information that they shouldn’t. Employers must realise they cannot revoke access to business information once it is on WhatsApp, as data is stored on individual phones, rather than centrally. And, if employees leave, they still have company information, including potentially sensitive data, and there’s little an employer can do about it. Michael O'Connor of NexGen Cyber says it is essential that companies regularly review digital assets, assess their security controls and implement measures to protect them. This not only safeguards their assets, but also demonstrates the security protocols in place to employees, and reassures clients and business associates. Such processes ensure data is protected and clearly illustrates its value and the potential repercussions in the event that a complaint is made. TerriSue Cosgrove is Managing Director at The HR Head

The Department of Enterprise, Trade and Employment has recently confirmed changes to the procedure for notifying the Minister of proposed collective redundancies, pursuant to section 12 of the Protection of Employment Act 1977, as amended. These changes took effect from 1 July 2024 and are on foot of: Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 S.I. 324 of 2024: Protection of Employment Act 1977 (Notification of Proposed Collective Redundancies) Regulations 2024 The following is a summary of the changes: All collective redundancies must be notified to the Minister, including where the employer is insolvent. This must be done by the employer or a responsible person (a Liquidator, Provisional Liquidator, Receiver or other court-appointed officer where the employer’s business is being wound up). Notifications may now be submitted electronically to minister@enterprise.gov.ie, as well as by registered post or hand delivery. Additional information is now required in a notification including the contact details of the employer or responsible person; and if the employer is a company, its CRO number. A new optional template form (Form CRN1) has been published to assist employers and responsible persons in complying with their obligations when notifying the Minister. Further information is available on Workplace Relations Commission webpage.

If you completed a Masters Degree and as a result only need to do a 3 year training contract (as opposed to the 3.5 years) you may be looking to interview in the market before the end of this year! As such, you will need do start considering your career path and the direction you want to take. There are a number of actions that will help you when making important decisions.  Below is a list you can tick off as complete over the weeks ahead :  Action list and Key considerations as a newly qualified ACA : Build a top class CV – Template and guide here   Start a Career Plan file – Webinar here   Watch some career webinars here and articles here    Start market mapping and select your top ten preferred/potential employers – If you need advice on market mapping your Careers Team in the Institute. Follow these companies on LinkedIn and you could even reach out to other Chartered Accountants working there via LinkedIn.  Get your LinkedIn profile up to speed – Document guide available from dave.riordan@charteredaccountants.ie  Treat this as the appendix to your CV – Professional Photo and good bulleted detail.   Set up alerts on jobs boards for a variety of different roles and titles and filter into a folder for review.  Connect with a few trusted recruiters to understand the career curve of an ACA – The Career Pathway Hub here will also be a useful resource.  Explore the full spectrum of career paths that you can take post qualification  Consider whether a contract might be a good option at this particular crossroads  Connect with a few mentors and get their advice formally.  Explore the option of a stint abroad to add real-world experience to my CV  Initiate a networking mentality and start speaking to your peer group about what they are doing with their careers in the years ahead.  Examine the LinkedIn profiles of peers several years ahead of you to see what paths they have taken as they moved out of their training contract.   Establish an elevator pitch about where you want your career to go.  Based on your recent annual reviews in work write an honest SWOT analysis of your personal brand and current profile.   Start building an Interview narrative – What are your key selling points / key stories and value-add examples? Have you asked the Institute Careers Team or a recruiter for a prep session? Interview Do’s and Don’t’s document here :   Consider who your referees going to be and will they sing my praises. Give them advance notice.   If October or November 2024 is when you will be leaving your training contract then start the key actions now per the above list and don’t put off contacting your Careers Team.  Get ahead of the curve.   Dave Riordan (FCA)   Recruitment Specialist & Career Coach | Careers Team Chartered Accountants Ireland.   Dave.riordan@charteredaccountants.ie    

From April 2025, businesses and employers were due to start providing more detailed employees’ hours data through PAYE Real Time Information submissions as proposed in the draft legislation: improving the data HMRC collects from customers. HMRC has announced that this specific aspect will not now commence from April 2025 due to concerns about their being insufficient lead in time to upgrade software and the delay caused by the general election. Although a revised timeline has not yet been announced, HMRC has said that this requirement will now not apply until April 2026 at the earliest. The announcement came in the most recent HMRC News and Information Bulletin.  In response to the initial consultation examining these proposals, Chartered Accountants Ireland expressed its concern that the additional data to be collected was not warranted.  However, the April 2025 expected implementation date for the other new data to be collected is still expected to proceed as this is still viewed as being “achievable”. At present, the data in-scope are as follows:  Directors in owner-managed businesses will be required to provide the amount of dividend income received from their own companies separately to other dividend income, and the percentage share they hold in their own companies via their Self-Assessment return,  The self-employed will be required to provide information on start and end dates of self-employment via their Self-Assessment return.  HMRC did say however that “whether and when to proceed with implementing the regulations remains subject to decisions by the new government.”   A further update on these proposals and the timeline for implementing these changes will be provided in due course.  

In this week’s miscellaneous updates, HMRC has been writing to approved producers of alcoholic products in the UK to tell them about the new digital service due to be launched in March 2025 and how to get ready. The minutes from the most recent Joint VAT Consultative Committee and Guidance Strategy Forum meetings are available. We update you below on P87 (tax relief for employment expenses) processing and the National Audit Office (NAO) has published a report on tackling tax evasion in high street and online retail.  The fuel advisory rates applicable to company car users from 1 September 2024 have been published and the latest  schedule of HMRC live and recorded webinars for tax agents is also available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of upcoming planned downtime and the online services affected.  P87 processing  HMRC is expected to provide a more detailed update on this issue later in September. However, we have been advised of the following in the meantime:  “HMRC has withheld the processing of some employment expense claims due to concerns about whether the relief claimed is due.   HMRC wants to make sure that customers get the tax repayments they are entitled to in as straightforward manner as possible. However, we also need to make sure that where we identify customers who are making errors, we take action to put things right for the customer and prevent similar mistakes from occurring in the future. This is why we are asking some customers to provide further evidence.  We will provide more information to customers impacted by this in due course.”   NAO report on tax evasion in high street and online retail  The NAO reported recently on tax evasion in high street and online retail in the context of HMRC estimating that tax evasion costs around £5 billion a year in lost revenue and is most prevalent among small businesses. The report examined whether HMRC, with other parts of government, is well-placed to tackle tax evasion in high street and online retail and also examined specific risk areas in more depth.   The report concluded that HMRC has had success in raising more tax from online retail by making online marketplaces liable for the VAT on sales by overseas retailers, which generated more than HMRC expected. However, significant weaknesses remain in government systems which tax evaders can easily exploit, most notably around company registrations and the ability of overseas businesses to falsely represent themselves as UK-established.  Tax evasion has been growing among small businesses, and HMRC has so far lacked an effective strategic response. Although there are good examples of localised campaigns targeting some retailers, HMRC missed earlier opportunities to tackle others, potentially allowing their market share to grow.  HMRC’s assessment of risks has also given too little emphasis to widely used methods of evasion such as sales suppression and “phoenixism”, despite identifying that they were large and potentially growing. This means HMRC may not prioritise the most effective compliance interventions. It has also not used some new powers to tackle tax evasion. While these remain untested, they will offer less deterrence.  Tackling tax evasion is not a straightforward task, and with finite resources HMRC must work with the rest of government and other stakeholders to find the most cost-effective way to reduce evasion.  HMRC’s overarching strategy to tackle non-compliance by preventing it from occurring is sensible, but it has not followed through on this principle sufficiently for tax evasion. Real opportunities exist for HMRC to work more systematically across government to reduce evasion.  The report also concluded that HMRC does not measure its overall performance in responding to tax evasion, although the examples highlighted in the report suggest high returns. The likelihood is that tighter controls and more compliance work could raise significant sums and would be cost-effective and improve value for money.   

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. 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.  Miscellaneous updates to guidance and publications  Check if a business holds Authorised Economic Operator status,  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS),  Get an individual guarantee to cover customs debts,  Delivery terms for Data Element 4/1 of the Customs Declaration Service,  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service,  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service,  Due diligence when making customs declarations. 

Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month. This is the first edition of Technical Roundup since its Summer Break and we have included some updates below which occurred over the Summer. In developments since the last edition Chartered Accountants Ireland were delighted to welcome members who joined on 1 September to the Institute thereby creating the largest professional body on the island of Ireland.  IAASA recently published a consultation paper to obtain stakeholders’ views on its proposal to revise the Ethical Standard for Auditors (Ireland) and the Financial Reporting Council has issued a consultation on revisions to its Guidance on the Going Concern Basis of Accounting and Related Reporting including Solvency and Liquidity Risks. Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) has published several updates over the summer months covering their recent activities, including June 2024 update and podcast July 2024 update and podcast August 2024 update The IASB has published its review of the impairment requirements relating to financial instruments, which indicate that the requirements in IFRS 9 are working as intended and provide useful information to users of financial instruments. The IASB is proposing amendments to its newest standard, IFRS 19 Subsidiaries without Public Accountability Disclosures, which proposes to reduce disclosure requirements for entities applying the standard. The comment period remains open until 27 November 2024. The IASB is proposing narrow-scope amendments to IAS 21 The Effect of Changes in Foreign Exchange Rates. The comment period remains open until 22 November 2024. The IASB is also proposing to add eight illustrative examples to illustrate how companies can apply IFRS Accounting Standards when reporting the effects of climate-related and other uncertainties in their financial statements. The comment period for these proposals remains open until 28 November 2024. The Financial Reporting Council (FRC) has issued a consultation on revisions to its Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks The European Financial Reporting Advisory Group (EFRAG) has issued its Annual Review 2023 which includes key developments for 2023 and Q1 of 2024. The FRC has published amendments to the FRS 101 Reduced Disclosure Framework standard. There are minor amendments to the standard including a disclosure exemption from presenting certain comparative information, and a conditional exemption for qualifying entities in respect of certain disclosures about supplier finance arrangements required by IAS 7 Statement of Cash Flows. The FRC has published thematic reviews covering offsetting in financial statements and IFRS 17 first year disclosures. IASB Exposure Drafts On 15th July, the IASB closed the comment period for their exposure draft ED/2024/1 Business Combinations—Disclosures, Goodwill and Impairment (Proposed amendments to IFRS 3, IAS 36). While broadly agreeing with the proposals, the Institute made some recommendations for the IASB to consider when finalising their response. EFRAG and the UK Endorsement Board (UKEB) also responded to the consultation with some recommendations. On 7th August, the IASB closed their comment period for their exposure draft ED/2024/3 Contracts for Renewable Electricity- Proposed amendments to IFRS 9 and IFRS 7. The Institute’s Financial Reporting Technical Committee issued a response to this and noted its overall support for the project, with some areas for improvement and clarification noted. EFRAG and the UKEB also responded to the consultation with some recommendations. IFRS 18 educational material IFRS 18 Presentation and Disclosure in Financial Statements will become effective on 1 January 2027. Some recently published educational material in relation to this new standard includes; IAASA’s policy paper, which sets out some matters for preparers to consider when applying the standard EFRAG’s summary reports on their educational sessions held over the Summer The UKEB have held some outreach activities and have also conducted some surveys on the standard Join us for some Free CPD & learn about the upcoming changes to FRS 102 on 11 September In March, the FRC issued amendments to FRS 102 and FRS 105 as part of its second periodic review of the standards. These changes will become effective in 2025 and 2026. In order to raise awareness of the requirements set out in the amended accounting standards, the FRC will be in Dublin on the 11th September for a free, in-person event. Please join us at the event to learn more about the upcoming changes, including significant changes to lease accounting and revenue recognition. Auditing and Assurance IAASA has published a consultation paper on its proposal to revise the Ethical Standard for Auditors (Ireland) and the comment period remains open until 25 October. The proposed effective date for the new standard is for audits of financial statements for periods beginning on or after 15 December 2025. IAASA has issued the July edition of its Standards Newsletter which includes updates on assurance of corporate sustainability reporting in Ireland and international developments. The FRC has published its sixth Annual Enforcement Review (Review) which provides a summary of FRC enforcement activity for the year ending 31 March 2024. The FRC has published its Annual Review of Audit Quality which covers the inspection and supervision results of the Tier 1 audit firms (BDO, Deloitte, EY, Forvis Mazars, KPMG, and PwC), which the FRC defines as the firms with the largest share of the UK PIE market. International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). IAASB has published new supplemental guidance on auditor reporting and new supplemental guidance which has been added to the existing resources issued.  The IAASB guidance includes videos, webinars, and other guidance. Sustainability On 5 July 2024 Minister for Enterprise, Trade and Employment, Peter Burke TD signed into law the Statutory Instrument giving effect to the provisions of the Corporate Sustainability Reporting Directive (CSRD). This legislation was signed just before the passing of the 18-month period whereby EU Member States had to have the CSRD enacted locally. While Ireland made this deadline, not all European countries did. You can keep track of the status of the CSRD transposition across Europe using Ropes & Gray’s CSRD Transposition Tracker. On 7 August IAASA issued a letter to Audit Committee Chairs highlighting their responsibility for the process of preparing sustainability reports as well as for monitoring the assurance process. It also highlights IAASA’s expectation that compliance with these requirements may significantly impact the annual reporting timelines. On 30 August, EFRAG published its XBRL Taxonomy for ESRS Set 1, which enables the digital tagging of ESRS statements. In addition, EFRAG has published the XBRL Taxonomy for Article 8 disclosures. The digital taxonomies enable the marking up ('tagging') of sustainability reporting in machine-readable XBRL format. Over the Summer, the Global Reporting Initiative (GRI) issued some interesting publications, including; GRI best prepares companies for CSRD reporting rules which answers some questions on what the new European Sustainability Reporting Standards mean for the use of GRI standards. GRI and TNFD make reporting on biodiversity easier which introduces a joint interoperability mapping resource and gives a detailed overview of the alignment between the TNFD disclosure requirements and the GRI standards EFRAG’s ESRS Q&A platform continues to provide a useful source of information regarding the ESRS standards. The platform is regularly updated with new questions and explanations. On 5 July 2024 the European Securities and Markets Authority (ESMA) published: a Final Report on the “Guidelines on Enforcement of Sustainability Information” (GLESI), and a Public Statement on the first application of the European Sustainability Reporting Standards (ESRS). Over the Summer, the EFRAG have released a connectivity project initial paper entitled “Connectivity considerations and boundaries of different Annual Report sections” The Ecodesign for Sustainable Products Regulation establishing a framework for the setting of ecodesign requirements for sustainable products was published on 28 June 2024 and entered into force on 18 July 2024.  It expands the scope of and replaces the current Ecodesign Directive (which applies to the energy efficiency of energy using products). Please click the Dept. of Enterprise Trade and Employment link to find out more about the main features of the legislation which include putting a stop to the destruction of unsold consumer goods and promoting and procuring more sustainable products. Sanctions and anti-money laundering The Internet Organised Crime Threat Assessment (IOCTA) issued its annual assessment in July 2024.  The report highlights relevant trends in crime areas such as cyber-attacks, child sexual exploitation and online and payment fraud schemes. Charities news The Charities (Amendment) Act 2024 was enacted in July 2024 and commencement of the legislation is awaited. Anyone who deals with a charity will benefit from reading Mason Hayes & Curran LLP article which deals with a selection of the new features of the 2024 Act. See in particular a useful paragraph on financial reporting requirements. The link to the Mason Hayes & Curran LLP article is here. Also on the charities front, the Irish Charities Regulator has published a newsletter in recent weeks. Charities Regulator News Issue 29 (newsweaver.com). It contains a link to their Annual Report 2023, a very useful article and checklist for a charity which may be selling a property some information on the new Charities (Amendment) Act 2024 and an article on Charity reserves and why they matter. Dept. of Enterprise Trade and Employment news Increase in Company law thresholds come into force The European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 (S.I. No. 301 of 2024) were signed into law on the 19 June and came into operation on the 1 July 2024. The Regulations transpose delegated Directive 2023/2775/EU . The purpose of the Regulations and the Directive is to adjust company size thresholds in line with 25 per cent inflation, thereby reducing the regulatory and administrative burden on some companies, which would otherwise become subject to audit and additional financial reporting requirements. In October 2023 the Institute, as part of the Consultative Committee of Accountancy Bodies -Ireland responded to the European Commission request for feedback on adjusting SME size criteria for inflation . Please see an Institute news item of June 24, 2024 on Increased size limits for Irish companies signed into law and click for the Dept. of Enterprise Trade and Employment (DETE) announcement referred to in the news item. Please click for a link to the page in the Institute’s technical hub dedicated to details of company law thresholds. Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 Readers may recall a news item in our last edition of round up that this legislation had been passed and readers were given a link to an Institute guide on the company law changes. The Act was commenced in its entirety on 1 July 2024. Draft company/business law legislation has been brought forward by DETE recently Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 The General Scheme of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 was published by DETE in March 2024. Readers can click here for our news item on provisions which might be of interest to members. By way of update readers should note that in July 2024 DETE published the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 (“the Bill”). The Bill includes substantially all the provisions of the General Scheme though it is worth noting that some of the provisions contained in the General Scheme in relation to the Corporate Enforcement Authority (CEA) are not included in the Bill. Click here to see the update on the proposed changes to Irish company law which we published in August 2024. Registration of Limited Partnerships and Business Names Bill (General Scheme) The heads of the General Scheme of the Registration of Limited Partnerships and Business Names Bill 2024 was published in July 2024. The General Scheme is accompanied by a Regulatory Impact Analysis.  The General Scheme proposes to repeal and replace the Limited Partnerships Act 1907 and the Registration of Business Names Act 1963. Subsequently, in August 2024 government approval was secured to commence drafting of the Miscellaneous Provisions (Registration of Limited Partnerships and Business Names) Bill. The proposed Bill would repeal and replace the Limited Partnerships Act 1907 and the Registration of Business Names Act 1963. Both Acts require updating to provide for modern business practices for those engaged in business using a business name or the limited partnership model.  Please click here for an article by law firm Pinsent Masons LLP, an article by law firm Addleshaw Goddard LLP and an article by KPMG Law LLP on the proposals. National Enterprise Hub On 10 July the Minister for Enterprise, Trade and Employment, Peter Burke TD, launched the National Enterprise Hub which brings together information and resources on over 180 government supports.  It is a free service which will make it easier for entrepreneurs to access and avail of grants funding and expert advice across a range of sectors. The hub brings together information and resources on over 180 government supports from 19 different departments and state agencies which can be accessed through the new online hub (www.neh.gov.ie). Please click here for an article by Ogier LLP on the launch of the hub. Pensions Authority The Pensions Authority published 3 publications during the summer which might be of interest. The first is Investment strategy (liquidity risk) guidance for trustees. The next is a link to the launch of the IAPF’s (which represents pension savers)  Cost Transparency Standard (CTS).The third is an information note on the Digital Operational Resilience Act (DORA). Digital resilience - DORA and NIS-2 In August 2024 the Department of the Environment, Climate and Communications published the General Scheme of the National Cyber Security Bill 2024. The Bill, when passed, will implement EU Directive 2022/2555, Network and Information Security Directive known as NIS 2. The directive must be brought into effect by member states by 18 October 2024. When implemented, in-scope entities will have imposed on them a significantly increased cybersecurity preparedness and incident reporting regime. Click to read some further information from the Dept. on the general scheme including the categories of “essential “and “important “entities (which includes for example sectors such as transport, pharmaceutical and healthcare ) and cybersecurity risk management. The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) will establish the EU systemic cyber incident coordination framework in the context of the Digital Operational Resilience Act (DORA), that will facilitate an effective financial sector response to a cyber incident that poses a risk to financial stability by strengthening the coordination among financial authorities and other relevant bodies in the European Union. Other On 1 September Chartered Accountants Ireland and CPA Ireland commenced operations as one Institute under Chartered Accountants Ireland. CPA Ireland members, students, staff and services have been incorporated into those of Chartered Accountants Ireland creating the largest professional body on the island of Ireland. On 11 July The Central Bank of Ireland published the independent review of its Fitness and Probity (F&P) regime.  The review was undertaken by Mr Andrea Enria the former Chair of ECB Supervisory Board. The Corporate Enforcement Authority has this week published its September newsletter which provides an overview of the CEA’s activities in recent months. This includes information about the CEA annual report, enforcement activities, company law developments and a reminder about its upcoming annual conference on 17 October 2024. You can sign up here  to receive the CEA newsletter directly to your mailbox.          Readers, in particular employers, may find useful A &L Goodbody thoughts and insights after 18 months of the new whistleblowing regime | A&L Goodbody LLP (algoodbody.com) which was published during the summer. It is written 18 months after Ireland transposed the EU Whistleblowing Directive through the Protected Disclosures (Amendment) Act 2022 (“2022 Act”). It notes, for example, a substantial increase in the number of whistleblowing claims and discusses the question most frequently asked by its international employer clients. This is whether the employer can retain its centralised reporting channel at parent company level with the introduction of the 2022 Act or whether each legal entity in a group must have its own internal reporting channels and procedures. Readers are also reminded of the Institute resources in this area. The Institute pages on protected disclosures on the technical hub have a large volume of information and resources available on this topic. In July 2024, the Irish Dept. of Finance published the Finance (Provision of Access to Cash Infrastructure) Bill 2024. The Bill aims to ensure that sufficient and effective access to cash is available in Ireland, and that any further evolution of the cash infrastructure will be managed in a fair, orderly, transparent and equitable manner for all stakeholders. Click here for the Dept. press release and text of the draft legislation. The text of the EU Artificial Intelligence (AI) Act was published during the summer. You can click for the text of Regulation 2024/1689. The AI Act became law on 1 August 2024 and the various parts of the legislation come into effect in the coming years. Please click the link to access a European Commission page on the AI Act. IFAC, the International Federation of Accountants has published a Professional Accountancy Organisation (PAO) Strategy Planning Toolkit which is designed to equip PAOs to develop their strategic plans and develop their operating models.    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.

The Institute’s affiliate regime has been simplified to reduce the compliance burden for firms.   From 1 September a single status of ‘affiliate’ replaces the previous multiple categories of ‘audit affiliate’, ‘investment business affiliate’, ‘general affiliate’, ‘AML affiliate’ and ‘insolvency affiliate’.    Previously an individual might hold affiliate status in more than one category but effectively have the same obligations under each category.   Furthermore, the rules regarding which principals at a firm should become affiliates have been streamlined and the overall requirement is that a principal at an Institute firm who is not a member of the Institute should be an affiliate of the Institute.  Therefore, there is no exemption from affiliate status for members of particular bodies.  This is consistent with the approach taken from January 2024 with the introduction of the affiliate requirement for all principals at Institute AML supervised firms who are not Institute members.   As a consequence of the latter, principals at a number of Institute firms have been granted affiliate status (AML affiliate status) since 1 July 2024 and therefore will not be affected by this change in the approach.  The Institute does not anticipate any notable increase in affiliate numbers overall as a result of the current streamlining.  The recent revisions to Institute regulations (1 September 2024) give effect to this simplification of affiliate provisions.    The requirements for affiliates are now set out in a single chapter in the revised Public Practice Regulations rather than across a range of Institute regulations.   Other Institute regulations now refer affiliates to the Public Practice Regulations as appropriate.  For example, a person required to become an affiliate in accordance with the revised Audit Regulations is directed to the provisions of chapter 7 of the Public Practice Regulations as regards application for affiliate status, the ongoing regulatory obligations of affiliates and liability to regulatory and disciplinary action where appropriate.   Institute affiliates: Are not entitled to describe themselves as Chartered Accountant Agree to be bound by the Charter, the Principal Bye-Laws, the Disciplinary Bye-Laws and other any other rules, regulations, codes and standards of the Institute; Are required to observe and uphold the Institute’s Code of Ethics Are subject to the Institute disciplinary arrangements where appropriate. The rules regarding affiliates at firms approved to carry out investment business activities in the UK under the Designated Professional Body Handbook are unchanged. Institute firms and compliance principals can direct any queries in relation to the revised affiliate regime to professionalstandards@charteredaccountants.ie.

As a new Labour government takes shape in Britain, Irish businesses are bracing for the potential ripple effects across key sectors, writes Vivian Nathan As Britain transitions to a new Labour government, Irish businesses will closely monitor the potential impacts, as we are its closest neighbour. Sectors such as construction, hospitality and retail may feel the ripple effects of Labour’s policies, especially regarding employment rights and consumer spending power, which are closely linked to broader economic conditions. Construction sector The construction sector in Ireland is paying close attention to developments in Britain, given the number of Irish construction companies operating in both jurisdictions. Baker Tilly is currently working with several UK companies interested in Irish infrastructure spend, particularly in the rail sector. Additionally, we have seen increased inquiries from UK labour companies looking to serve the Irish market, demonstrating a growing interest in cross-border opportunities. The UK has been hampered by delays in decision-making before the General Election and the collapse of several construction contractors. The cancellation of large parts of the High Speed 2 railway project has further motivated UK contractors to seek opportunities in Ireland, especially with the Irish Government’s commitment to significant infrastructure spending. Meanwhile, the Irish housing market remains strong, with demand continuing to outstrip supply. Nevertheless, local issues around capacity and planning present ongoing challenges for the construction sector in Ireland. Irish-origin construction businesses are actively tendering for work across the island, further highlighting the cross-border interest. Hospitality and retail sectors Ireland’s hospitality and retail sectors have faced significant challenges since the COVID-19 pandemic. Despite seeing increased demand, the hospitality industry has recently been rocked by rising costs, such as those experienced by Dylan McGrath and the Press Up Group. These sectors are particularly sensitive to broader economic factors like inflation and interest rates, both of which are influenced by the economic situation in Britain. Labour’s focus on enhancing employment rights in Britain, including potential increases in the National Minimum Wage and National Living Wage, could indirectly affect Irish businesses, especially those operating in both jurisdictions. The proposed Employment Rights Bill, which aims to ‘make work pay’, may introduce measures such as banning zero-hour contracts and extending parental and sick leave. These changes could increase operational costs for businesses, potentially leading to higher consumer prices, particularly in the North of Ireland, where the border economy is acutely sensitive to changes in British policy. Adapting for the future The change in government in Britain brings with it a level of economic uncertainty that is of particular concern to Ireland, given our close ties, shared border, and the fact that some Irish and UK businesses operate in both jurisdictions. While it remains to be seen if the UK Labour government will adopt a ‘tax and spend’ approach, particularly in changes to the non-domiciled regime that could make Ireland a more attractive base, the full implications of Labour’s policies remain unclear. What is clear is that key sectors in Ireland – particularly construction, hospitality, and retail – will need to stay informed and be prepared. The changes in Britain could have significant consequences for Ireland, making it essential for Irish businesses to monitor developments and adapt accordingly. Vivian Nathan is Chief Operating Officer at Baker Tilly

New technologies will play an essential role in supporting finance functions to become value-adding business partners for organisations, writes Vickie Wall The application of technology to automate routine and low-value tasks has been a priority for CFOs for quite some time. Many finance leaders looking beyond automation are considering the implementation of autonomous systems that can carry out tasks but make or at least suggest decisions without the necessity for human intervention. However, among the more surprising findings of the EY Ireland CFO Survey 2024, 47 percent of respondents cited manual processes and controls as an area where time is used least efficiently in the finance function. This suggests that a sizeable number of Irish organisations still have some way to go in their automation efforts and that autonomous finance is probably not even on the horizon for them. No organisation, however, wilfully persists with inefficient and costly systems that are readily amenable to automation. The reality is that organisations face numerous obstacles when it comes to automation processes, not least of them skills deficits and costs. Eye on saving time and cost The Irish business landscape is extremely varied, ranging from Irish PLCs overseeing vast global operations and subsidiaries of global multinationals that are carrying out a range of finance and business services in Global Business Service centres, to both large and mid-sized private organisations with often relatively small finance teams and scarce technology resources. It is, therefore, quite probable that organisations at the smaller end of that spectrum will be those with the most significant automation challenges. Interestingly, recent advances in technology mean that autonomous finance may offer a means of leapfrogging obstacles. Autonomous finance systems use advanced technologies such as machine learning, artificial intelligence (AI) and big data analytics to continuously learn, adapt, predict, and have the capability to operate on their own. Up until quite recently, those technologies have been prohibitively expensive for most organisations and the skills to use them effectively have been rare and in high demand. The advent of generative AI (GenAI) and the near-simultaneous retrenchment in the tech sector has brought both the technology and the ability to use it within reach of just about all organisations, regardless of size. Very importantly, low-cost and no-cost GenAI tools can help to fill skills gaps in finance functions and accelerate automation efforts or restart stalled projects. Their natural language capabilities allow them to write the code for programmes and tools to carry out tasks and execute processes based on simple instructions from a human with little or no technology expertise. This can be applied immediately to time-consuming, recurring processes like month- and year-end close. In most cases, these are highly manual processes that deal with huge numbers of journal postings and have a high potential for human error. Automating them will both save time and effort and reduce costly errors. Seven-step roadmap to adoption Finance automation is no longer an option; it is a necessity. That will also be the case for autonomous finance in the not-too-distant future. The pressure on finance functions will simply be too great to sustain without the support of automated and autonomous processes. The only remaining question is how to progress the adoption and implementation journey. There are seven steps to successfully embrace automated and autonomous finance. Understand the current process Identify those tasks and processes that take the most time for the least reward, document them and establish if they make good automation use cases. Set clear goals Decide what you hope to achieve from automation; reduced manual errors, faster processes, reduced costs, improved reporting or better resource allocation. Choose the right tools Evaluate different finance automation tools available in the market. Some off-the-shelf tools from established providers offer clear benefits. Avail of free trials where possible to assess the claims made by the provider. Work with the IT function to ensure activities and strategies align with one another. Use intelligent bots The concept of AI as an assistant to augment human capability should be embraced. Rather than focusing solely on areas where human activity can be replaced by machines, the exploration of the use of technology to assist humans in their work should be given at least equal priority. Start small It is best to automate small parts of the accounting cycle at the beginning to build confidence in the new tools and solutions. This will help gain buy-in from within the finance function as well as the C-suite level to generate savings to fund future projects. Encourage innovation If finance teams are encouraged to dabble in the technology and experiment with automation in small projects, it could help build confidence and accelerate adoption. Allowing individuals to experiment can uncover new use cases and unlock additional value. Train the team While GenAI-powered tools will make up for many existing skills gaps, finance teams will still need to be trained on how to use the new tools to optimise their value. This will support the change management process required for the adoption of any new technology. Accelerate the journey Finance functions need to accelerate their automation journeys in the face of a rapidly increasing burden brought about by a combination of new regulations and increased demands from the business. GenAI and other new technologies have the power to support automation as well as assist in the adoption of high-value-adding autonomous finance processes. Vickie Wall is Financial Accounting Advisory Services Leader at EY

The EU’s Nature Restoration Law mandates the restoration of 20 percent of land and sea by 2030. Irish businesses must assess their reliance on nature for resilience, writes David McGee The formal adoption of the European Union (EU) Nature Restoration Law (NRL) by the EU Council in June 2024 marks another victory for nature. Importantly, it urges Irish businesses to understand their reliance on and impact on nature and biodiversity. Understanding what legislation like this could mean for long-term business resilience is essential. What is the importance of the Nature Restoration Law? The NRL is the first continent-wide, comprehensive law of its kind. Under the NRL, EU countries must implement measures to restore at least 20 percent of the EU’s land and sea areas by 2030 and all ecosystems in need of restoration by 2050. It sets specific legally binding targets and obligations for nature restoration across various ecosystems – from terrestrial to marine, freshwater and urban environments. Member states must submit national restoration plans to the European Commission by 2026, detailing how they will achieve these targets and how they will monitor and report on their progress. New business opportunities for ecosystem resilience Businesses often struggle to connect their operations directly with nature and biodiversity. However, a thorough understanding of value and supply chains reveals that reliance and impact  on nature and biodiversity are relevant for every business. The NRL may affect companies’ suppliers, customers or individual holdings directly or indirectly. The NRL and existing biodiversity reporting requirements under the Corporate Sustainability Reporting Directive (CSRD) signal to the business world that nature and biodiversity are paramount. Understanding and investing in nature and biodiversity can also open up new opportunities. The NRL aims to support the EU’s overarching climate mitigation and adaptation objectives while enhancing food security. Restoration efforts contribute to ecosystem resilience, which can lead to more sustainable long-term business models – especially for those heavily dependent on natural resources. Creating long-term sustainability Here are four steps ESG leaders can take to understand your company’s reliance on nature and biodiversity and ensure long-term sustainability.  1. Undertake value chain mapping: Value chain mapping is a crucial tool for understanding the ecosystem of your product or business operations. Gaining visibility of your value chain will assist in identifying where nature and biodiversity intersect and how they are integrated or relied upon throughout the value chain.  2. Evaluate and assess: Once you identify nature and biodiversity throughout the value chain, dependencies and impacts should be evaluated and assessed. Assess how natural resources (land, water, air) are utilised or relied on and how this relates to the locality of the resource. Nature and biodiversity can be highly local and unique. Where are the vulnerabilities and risks to nature from using resources in the value chain? What is the impact, and what can you do to mitigate it? Equally, where are the opportunities, or where can gains be made? 3. Data and technology: Relevant data and technology will give more certainty and enable informed decision-making by providing more accurate evaluations and assessments of the impacts and opportunities of business operations on nature and biodiversity. Leveraging non-financial sustainability reporting data, public datasets and geospatial tools will help build a comprehensive and accurate understanding of the interface between businesses, nature and biodiversity. Importantly, this will inform adequate action to reduce impact and dependencies while maximising opportunities. 4. Business strategy and risk management integration: Embed identified nature and biodiversity risks and actions into your broader business strategy and risk management. Increasingly, businesses are integrating sustainability into their wider business strategy, leading to sustained value, enabling strategic decision-making, driving accountability, maintaining compliance, and setting out how the cost to the business versus the contribution to society is managed. David McGee is ESG Leader at PwC Ireland

Recent amendments to the Institute’s CPD Regulations have facilitated simplification of how members confirm compliance with CPD requirements and the Institute’s Code of Ethics[1]. Henceforth, by paying the annual membership subscription, or permitting this to be paid on their behalf, or otherwise renewing their membership, members are automatically acknowledging CPD compliance and awareness of Code of Ethics obligations. As a consequence, members generally will no longer have to submit an annual declaration (the Individual Annual Return) in respect of these matters.  Further information on the Institute’s CPD requirements is on the CPD Support & Guidance webpage.  Documents on this page also sets out circumstances in which members may apply for an exemption from CPD requirements; there are no changes in this regard.   Members who have exemptions in this regard are considered to be compliant with the Institute’s CPD Regulations as they are availing of a waiver in accordance with the CPD Regulations. Similarly, there is no change to the Institute’s current approach to substantive testing of CPD compliance whereby a sample of member CPD records is selected for review on an annual basis.  Responsible Individuals (statutory auditors) in audit firms registered by the Institute remain subject to a separate CPD compliance regime based on company law and IAASA requirements. If anyone has any further queries in relation to the above, please contact us at professionalstandards@charteredaccountants.ie. [1] Additional requirements continue to apply to members holding Practising Certificates, and who are Responsible Individuals (statutory auditors).

The earning potential for both experienced and newly qualified Chartered Accountants working in Leinster has increased significantly, according to data published today by Chartered Accountants Ireland Leinster Society. The survey results show the average salary package in Leinster now stands at €123,466 (up 4% on 2023), with the average basic salary of newly qualified Chartered Accountants rising to €62,374 (up 5.6% on 2023). The annual survey of over 1,100 Chartered Accountants, launched today by Chartered Accountants Ireland Leinster Society in partnership with Barden, Ireland’s leading accounting and tax talent advisory and recruitment firm, provides the most up-to-date guide to Chartered Accountant salaries and employment prospects in the Leinster region.   Strong growth in remuneration packages The research, conducted by Coyne, shows earning potential across the profession remains strong, with €123,466 the average salary package for Chartered Accountants working across all sectors. This figure includes base salary, car or car allowance, and bonus. The longer-term trends are also strong, with a 10% increase in average salary package between 2019 and 2024. 67% of respondents are satisfied or very satisfied with the salary they receive. 90% of respondents overall say their total remuneration has increased in the past three years, with 33% reporting it had increased by more than 25%. Four in five claim their total remuneration is expected to increase within the next 12 months. As part of the remuneration package, 73% expect to receive a bonus in 2024.  Most common elements in salary package The vast majority (87%) of members have a pension, with employers contributing an average 9% of their salary. After basic salary, this pension contribution is the most valued part of their package for 54% of respondents. The other most common elements in respondents’ salary packages are payment of professional subscriptions (79%); Cycle to Work scheme (59%); health insurance (55%); and sponsored professional development (51%). Artificial intelligence in the profession An increasing enthusiasm about the opportunities represented by artificial intelligence is clear from the 2024 survey findings: Over half (52%) of respondents say it is a significant opportunity for the profession (40% in 2023). 55% say it will allow the profession to move further up the value chain in terms of the work it does (47% in 2023). 57% of respondents feel that artificial intelligence will impact positively on their career (44% in 2023). In terms of the wider impact of technology on the profession, 60% feel that cloud-based accounting solutions will impact positively on their career, with 68% of respondents saying the same about automation. Commenting Damien Carr, Chairperson of Chartered Accountants Ireland Leinster Society, said:   “It is very encouraging to see growing enthusiasm about the potential of AI to move Chartered Accountants’ work further up the value chain. AI will not replace human judgement or strategic decision making however but will sit alongside these critical skills that have made Chartered Accountants among the most trusted advisors to senior business leaders. In addition, 44% of respondents agree that AI should be a regulatory priority, and I am confident that regulations such as the new EU AI Act will guide business and society in achieving this important balance. “The continued increases to newly qualified and average salaries demonstrates the level of demand that continues to exist for our profession and will help us to continue to attract the brightest talent to Chartered Accountants Ireland into the future.” Non-monetary rewards and work-life balance The survey findings identified a range of initiatives across Irish workplaces to facilitate team healthy work-life balance. The most common tools made available were the option for hybrid working (available to 83% of respondents); parental and carers’ leave (available to 49% of respondents); and an employee assistance programme (available to 50% of respondents). Job satisfaction was high amongst those surveyed, with 63% satisfied with the non-monetary aspects of their job (62% in 2023); 76% of members satisfied with their work environment (77% in 2023); and 66% happy with work/life balance (64% in 2023). Elaine Brady, Managing Partner at Barden, said: “Despite the continued backdrop of macro level uncertainty over the past 12 months, the demand for accounting talent seen in 2023 has continued strongly into 2024. Differentiating themselves and creating clear career paths is a key challenge for companies throughout Ireland. Accurate data on intrinsic and extrinsic reward can create competitive advantage for those who choose to use it. The insights gained from this publication can also help businesses and hiring managers to craft competitive reward structures to aid not just talent attraction, but as importantly, talent retention. “It is also extremely interesting to see that 83% of members have some form of hybrid working arrangements, with 3 days a week in the office becoming the average. “Also interesting to note is the change in respondents’ perception of AI, and how it will positively impact their day-to-day work, up to almost 57% this year, a significant increase on last year’s 44%. This in turn has an impact on satisfaction with their work, which has also increased this year to an impressive 76% of Chartered Accountants being either satisfied, or very satisfied with their work environment.” ENDS  Note to editors  The survey was conducted by Coyne Research on behalf of Chartered Accountants Ireland Leinster Society, in partnership with Barden, between 7 June – 24 June 2024. About Chartered Accountants Ireland Leinster Society   Chartered Accountants Ireland Leinster Society is a district society of Chartered Accountants Ireland, representing over 16,000 Chartered Accountants throughout Leinster.   Chartered Accountants Ireland is Ireland’s leading professional accountancy body, representing over 38,400 members in over 100 countries and educating 6,600 students. In February 2024, members of Chartered Accountants Ireland and CPA Ireland elected to join together as a single professional body. On 1st September 2024, members and students of CPA Ireland became incorporated into Chartered Accountants to create the largest professional body on the island of Ireland. Chartered Accountants Ireland is one of the top 20 professional accountancy bodies in the world, by size. It is an all-island body established by Royal Charter in 1888, working to create opportunities for members and students as well as advancing the public interest. It is a founding member of Chartered Accountants Worldwide, the international network of over 1.8 million chartered accountants. Chartered Accountants Ireland members also play key roles in the Global Accounting Alliance, Accountancy Europe and the International Federation of Accountants. Chartered Accountants Ireland’s members provide leadership across both the public and private sector, bringing experience, trusted expertise, and strict standards to all aspects of their work.  Chartered Accountants Ireland engages with a number of stakeholders including governments, policy makers, regulators, and business groups on key issues affecting the profession and the wider economy. Chartered Accountants Ireland supports members at every stage of their career from education to qualification to continuing professional development.   About Barden Barden is a partner led talent advisory and recruitment firm consumed with supporting companies that really know the value of their people. Barden’s expertise covers Accounting & Finance, Business Support, Engineering, Legal, Life Sciences, Projects & Transformation, Supply Chain & Procurement, Technology, and Tax & Treasury, talent advisory and recruitment. Chartered Accountants specifically choose to join Barden in order to use their qualification in a different way. Barden has proudly partnered with the Chartered Accountants Ireland Leinster Society, for the last seven years, to bring you the annual salary survey. Barden also works closely with Chartered Accountants Student Society of Ireland (CASSI) and Young Professionals to make sure their members get access to the right information, at the right time in order to make more informed decisions about their professional future.    

As of yesterday, 1 September, Chartered Accountants Ireland and CPA Ireland began to operate as one Institute under the Chartered Accountants Ireland brand.  Members of the two Irish-based accountancy bodies first voted on an amalgamation proposal in February 2024 with a majority of members voting in favour of uniting the two organisations to create a single Institute to better represent the interests of its members, the accountancy profession in Ireland, and the wider public.  From 1 September, CPA Ireland members, students, staff and services have been incorporated into those of Chartered Accountants Ireland creating the largest professional body on the island of Ireland. This follows a comprehensive process of engagement between representatives from both organisations as to the legal, regulatory and staffing requirements of the move.  In a statement, Chartered Accountants Ireland President Barry Doyle said: “Today Chartered Accountants Ireland welcomes new members, students, and staff to the Institute. This is the culmination of close member engagement and strong collaboration between both Institutes towards a shared vision for the future of the profession.  “I want to thank members for their support and feedback which has laid the foundations for a new chapter in our history, and I look forward to working closely with all members in the coming months.”

In 2025, DORA will impose rigorous risk management standards on EU financial entities. Shane O’Neill offers five practical steps for compliance readiness From 17 January 2025, the Digital Operational Resilience Act (DORA) applies to all financial entities operating within the European Union. This wide-reaching legislation aims to strengthen the digital operational resilience of the financial services sector. Built upon five pillars, it contains rigorous requirements for information and communication technology (ICT) risk management, incident reporting, testing, third-party risk management and information sharing. Implementing DORA’s requirements can be overwhelming, and knowing where to begin can be difficult. Below are five practical steps that firms can take to become DORA-ready. Understand the principle of proportionality Because of the diverse nature of the financial services sector, DORA employs the principle of proportionality. This challenging but critical aspect of compliance means that entities’ regulatory requirements will differ depending on their size and risk profile and the scale, nature and complexity of their business. For example, large institutions providing multiple services, such as Ireland’s three-pillar banks, must establish a fully-fledged ICT risk management framework that addresses all appropriate areas from DORA’s Level 1 and Level 2 texts. However, smaller entities, such as boutique trading firms, can avail of a simplified ICT risk management framework covering only the areas relevant to their function, services and industry. Testing requirements also differ depending on proportionality. All entities must set up a general testing programme and comply with digital testing requirements, but through industry engagement with the Central Bank of Ireland (CBI) in recent months, the indication is that only about 10–15 institutions in Ireland will initially fall within scope of the advanced threat-led penetration testing requirements laid out in Articles 26 and 27. The application of proportionality seeks to create a high standard for the sector as a whole while protecting smaller organisations from unnecessary regulatory encumbrances. Since DORA does not take a one-size-fits-all approach to compliance, institutions should begin their compliance journey with a scoping exercise to confirm the right-sized approach to meet the requirements without taking on needless regulatory burdens. Perform a holistic gap assessment DORA’s five pillars touch many components of business operations, so organisations should analyse their entire operating model to determine which groups and business functions the legislation affects. They should bring together the stakeholders from each affected area to ensure that everyone understands their role in the compliance journey. Business as usual will continue throughout the implementation timeline, and having a collaborative approach to the planning stage helps stakeholders align on DORA-related priorities and responsibilities from the get-go. When conducting the business-wide gap assessment, entities should also inspect existing processes to determine if they can be used for DORA compliance. All firms practise digital operational resilience to some extent, and with a comprehensive review, in many instances, they’ll discover that they can enhance some of their existing procedures to satisfy DORA requirements. Leveraging and improving existing procedures saves time and allows entities to focus their effort and resourcing on the areas where they’ll need to start from scratch to build practices that achieve compliance. Be strategic about remediation activities When building a remediation roadmap, entities should address the compliance areas that need the most work first. Drafting new frameworks, evaluating them against the legislation and scrutinising their effectiveness will take time. Areas with significant compliance gaps must be addressed thoroughly, and an imminent implementation deadline can create unnecessary pressure on employees. Whenever possible, businesses should align their remediation plans with existing transformation roadmaps. To remain competitive, many organisations are already executing transformation roadmaps –digital, operational, environmental, etc. These businesses should ground DORA changes within their existing plans. For instance, if a current transformation roadmap has a timeframe for updating contracts with third-party suppliers, the business should incorporate the additional contractual changes required by DORA as part of that review cycle. Document decision-making While the CBI expects firms to be as compliant as possible by 17 January 2025, it has also recognised that “the regulation of digital operational resilience is not a once-and-done exercise and that is optimal to adopt a multi-year, multifaceted perspective”. When implementing large-scale change programmes, certain business realities, such as the lengthy process for updating third-party contracts, may prevent organisations from implementing all required changes within the timeframe in place. The CBI will take such issues into account when evaluating compliance, but it has firm expectations that all entities will have established and begun work on an agreed implementation roadmap by the January deadline. Firms should, therefore, be prepared to give an account of their DORA decision-making process. Ensuring oversight and alignment through risk and compliance functions and objective review and challenge from internal audit will show the application of a holistic delivery model to meet DORA requirements. Plan to test digital operational resilience regularly DORA requires that firms test digital operational resilience regularly (with the principle of proportionality determining the frequency of the review cycle), so DORA frameworks need to stay top of mind within organisations even after implementation projects stand down next year. By increasing entity-wide awareness about maintaining digital operational resilience, businesses can help all employees understand that DORA frameworks shouldn’t exist in silos; they need to evolve alongside business practices. Any large-scale change – restructuring, operational changes, systems updates, etc. – should prompt an evaluation of the existing framework. For instance, if a firm decides to overhaul its technology systems in 2026, then the DORA framework – despite only being a year old – may need updating to ensure continued compliance and meet the evolving business model of today. Shane O'Neill is Partner in Consulting at Grant Thornton

While I’m the youngest President in Chartered Accountants Ireland’s history, it’s still over twenty years since I sat Leaving Cert Accounting. Despite this passage of time, I studied the same syllabus, frozen in time since the 1990s, as the students who received their results today. Juxtapose this stasis with the absolute transformation of the accountancy profession in the last twenty years and you can see the mismatch. Add to this the fact that the Irish accountancy profession made a €19.8 billion contribution to the Irish economy in 2022, supporting over 83,000 jobs in Ireland and generating €1.8 billion in tax revenues, and the mismatch starts to have significant material impact. Back to the 90s Senior cycle is where most young people first interact with accounting as a subject, and the passage of time has not been kind to it. Students effectively need to “unlearn” much of what they learn at senior cycle and learn the subject anew at third level and in their professional training. The need for companies to provide reliable and transparent information beyond financial metrics has increased exponentially in the last decade, and the dated syllabus does not reflect the work that accountants do, and will do, in a modern economy. I want to acknowledge the work teachers around the country do to bring it to life for students, but they are nonetheless bound by the syllabus. We work closely with Leaving Cert students through our online second level accounting programme Boot Camp which now runs in every county in Ireland. Feedback from teachers we speak to indicates that in some cases, students were more attracted to Business at Leaving Cert as they saw Accounting as requiring a particular skillset, i.e. needing to ‘be good at maths’ to perform well in it. In speaking to our ACA students, many pursued accounting at third level despite, not because of, their experience at second level. Perception is critical. Chartered Accountant Ireland research among Gen Z respondents shows a clear gap in terms of how accounting is perceived by school leavers versus those who had commenced their professional training. Terms such as challenging, numbers-based, and boring were used by the former, dropping dramatically among the latter when they engage with a modern curriculum with the latest advances in technology and emerging accounting practices. Impact on the talent pipeline Anecdotally, the talent pipeline problem is clear right across the profession, from practices of all size to industry, resulting in attraction and retention challenges. It is driven by a huge increase in competition for talent from non-accounting roles; but also, this gap in perception of what accountants do. The accountancy profession is fundamental to Ireland’s economic prosperity. Our members support SMEs the length and breadth of the island, as well as playing a critical role in supporting investment from all corners of the world to Ireland. There is continued strong growth in demand for the services of the profession, but this demand can only be met if there is a strong pipeline of talent coming through, and this begins with our Leaving Cert students. I would say to students getting their exam results, employer demand for accountants is extremely strong. Salary levels for qualified accountants reflect this demand and the vitally important roles that accountants perform in all organisations. This demand continues to grow and so too does the range of opportunities. Reform is on the way This Institute has been engaged with the Department of Education for some time on the need to reform the Leaving Cert Accounting syllabus. Earlier this year we took our place on the National Council for Curriculum and Assessment’s Leaving Cert Accounting development group. We are now in the redevelopment process, but this change is so long overdue, and the rate at which the profession is innovating and transforming is in sharp contrast to the lack of agility over the last couple of decades at Department level in keeping pace.   It is envisaged that a revised specification for Leaving Cert Accounting will be introduced in schools from September 2026. It will provide a much-needed opportunity to ensure that the subject is relevant for students beyond second level education. And this is critical, as accountants are found across most business functions now, they are no longer confined to finance teams. There is an increased demand in industry roles, business process transformation, data analytics, regulatory technology, Fintech, compliance, risk management and ESG reporting. Senior cycle accounting of the future will feed a pipeline of students through the many entry routes into the profession, whether as school leavers or graduates, to meet this demand. So, the syllabus needs to reform, and then keep reforming. Remarkably, even with all the flaws of the current syllabus, accounting is the second most popular subject in the business suite for students in senior cycle and between 12-14% of students have been choosing the subject annually. It is exciting to imagine what a reformed syllabus could do to attract the best and brightest of our future business leaders.

Irish businesses in beef and forestry face challenges as new EU deforestation rules demand ‘deforestation-free’ certification, with severe penalties for non-compliance, writes Vivian Nathan Irish businesses, particularly those in the beef and forestry sectors, are set to encounter significant regulatory hurdles due to the new EU deforestation regulations. With the potential for severe penalties, the stakes have never been higher for Irish exporters. The EU Deforestation Regulation (EUDR), which will take effect on 30 December 2024, is designed to combat forest degradation by imposing strict compliance obligations on businesses trading in specific goods with the EU.   For Ireland, this means that companies exporting beef products, wood, and other related commodities will need to demonstrate that their products are ‘deforestation-free’. This regulation imposes stringent requirements on Irish businesses, particularly those in the beef and forestry sectors. Products such as  beef and processed beef items, and wood products must be certified as ‘deforestation-free’. This certification means they must not have been produced on land deforested after 31 December  2020. Failure to comply could result in severe penalties, including fines, confiscation of goods, and exclusion from public procurement opportunities. The impact on Ireland is significant due to its strong agricultural and forestry sectors. Farmers and businesses involved in beef production, wood processing, and other related industries will need to undertake rigorous due diligence to meet these new standards. This includes gathering geolocation data and other documentation to prove compliance. The new regulations represent a significant shift for Irish exporters, especially those in the beef and forestry industries. The penalties for non-compliance could severely impact businesses that do not take immediate action. Beef and processed beef products Items such as steaks, minced beef, liver, and canned luncheon meat must now be proven to come from sources that are not contributing to deforestation. Given Ireland’s significant beef export market, this regulation could place additional pressure on farmers and processors to ensure compliance. Forestry and wood products Products such as building materials (sheets of wood, laminated wood, wood flooring), wooden packaging (crates, pallets), and wooden household items (tableware, ornaments) must meet the stringent ‘deforestation-free’ criteria. The forestry sector, a cornerstone of rural Irish economies, will need to adapt quickly to avoid penalties. Other goods Chocolate products, coffee, printed materials (books, brochures, newspapers), and wooden furniture will also fall under the scope of the EUDR. For businesses exporting these goods, the compliance burden will be significant. Regulatory penalties The EUDR outlines a range of penalties for non-compliance, including: fines proportional to the environmental damage and value of the commodities, with escalating penalties for repeated offences; confiscation of non-compliant products and revenues from their sale; temporary exclusion from public procurement processes and access to public funding for up to 12 months; and prohibition from placing products on the market or exporting them in the event of serious or repeated infringements. Action required Businesses must start preparing now. The first step is understanding the EUDR’s impact on your operations and gathering the necessary data for the due diligence system (DDS). This includes verifying the geolocation of raw materials against the EUDR Map to confirm compliance. The EUDR is more than just a regulatory hurdle; it’s a transformative challenge for Irish exporters. By taking proactive steps, maintaining clear communication within supply chains, and ensuring all products meet the ‘deforestation-free’ criteria, businesses can safeguard their operations and continue to thrive in the European market. With the December 2024 deadline fast approaching, Irish businesses must adapt swiftly to the new regulations or face severe consequences in the EU market. Vivian Nathan is Chief Operating Officer at Baker Tilly Ireland

With the EU AI Act now in effect, businesses must navigate its regulatory challenges while unlocking AI's potential. Keith Power outlines three key strategies to ensure compliance and drive innovation With the introduction of the EU Artificial Intelligence Act, exactly three years after its first draft, organisations now face the challenge of understanding the business impact of this new regulation and determining appropriate measures to take. What contributes to this dynamic is, for the majority of organisations, thinking about the risk and compliance implications of AI while exploring its business potential. Here are three so-called steps to deal with both of these challenges. Step 1: Map your landscape of current and expected AI applications Top-down: Define current and foreseeable business opportunities and issues and compare these with the potential that generative AI technology offers. Bottom-up: Do a brainstorming session with appropriate representation of relevant business functions to identify potential AI use cases. The success factor in brainstorming is not overthinking it. Combine both categories of AI use cases and plot these against two dimensions:  overall business impact; and implementation effort required.  Highlight your ‘quick wins’ (high business impact, low implementation effort) and ‘high potentials’ (high business impact, high implementation effort) to get a strategic landscape of AI applications. Create an inventory of your current AI applications, in use and development, and add them to the strategic landscape of AI applications. Don’t forget third-party applications. The inventory should at least capture: the purpose and intended use of each AI system; the data it uses; its core functionality/workings; the processes, functions and (in)direct stakeholders it affects; and risk categorisation that is consistent with the EU AI Act. Result: A robust starting point for an AI strategy and a regulatory impact analysis. Step 2: Raise awareness and upskill employees For every job, function or role out there, the question is not if AI will change it, but when. Not having an AI strategy is not a sufficient reason to wait to offer employees upskilling opportunities or create a safe learning environment in which they can build skills in using AI and dealing with the risks of the technology. The latter is especially important because employees can start working with generative AI on their own initiative. Agile is the keyword here. Applying the latest generation of AI technology is like learning to work with a new colleague –  you have to spend time together to get attuned to each other.  What upskilling should focus on for now: Introduction to generative AI and its principles: This topic provides an overview of generative AI and explains its fundamental principles and applications. Employees will learn to understand the potential benefits and challenges associated with using generative AI. Responsible use of generative AI: This topic highlights the importance of responsible and ethical AI use. Employees will learn about risk considerations, including human impact, ethics, bias, fairness, privacy, and transparency, in the context of AI applications and the consequence(s) of their use. They will gain an understanding of the need to ensure that AI systems are developed and deployed in a responsible and accountable manner, in accordance with new legal requirements under the AI Act. Prompt engineering: This topic focuses on the concept of prompt engineering, which involves designing effective prompts or instructions to direct the behaviour of a generative AI model. Employees will learn how to craft prompts that produce desired outputs while avoiding unintended biases or undesirable outcomes. They will gain an understanding of the significance of prompt engineering for achieving reliable and ethical AI results. By covering these three key topics, organisations can provide employees with a comprehensive understanding of generative AI, responsible AI use, and the importance of prompt engineering for effective and ethical AI application. Result: An equipped workforce to execute the (future) AI strategy, to handle AI responsibly, and to shape, implement and comply with legal requirements. Step 3: Implement responsible use guidelines Responsible use of AI revolves around desired business conduct. First, it requires awareness and clarity about what that is and second, the ability to recognise the associated risks in practice and to respond effectively to them. Organisations should establish simple but clear and workable responsible use guidelines. These guidelines address what should always be done and/or what should never happen (i.e. the ‘non-negotiables’) when it comes to the use of AI and data.  To determine the working principles for daily use, organisations can draw inspiration from ethical AI principles, such as transparency, accountability, human oversight, and social and ecological well-being, as formulated in 2019 by the High-Level Expert Group of the European Commission. These principles provide broad guidance and usually need to be further operationalised to be workable in daily practice. When developing these guidelines for responsible use for the organisation, it is important to find an appropriate balance between setting boundaries and offering freedom for innovation within the organisation. Result: Clear criteria to guide the AI strategy and its execution, end-to-end through the organisational AI lifecycle. Keith Power is Partner at PwC

  Please click the link to read our company law news item of March 2024 when the General Scheme of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 (“General Scheme”) was published by the Department of Enterprise Trade and Employment (DETE). DETE has now published the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 (“Bill”). The Bill includes substantially all the provisions of the General Scheme though it is worth noting that some of the provisions contained in the General Scheme in relation to the Corporate Enforcement Authority (CEA) are not included in the Bill. We set out below some additional points to our earlier note which may be of interest to readers. Readers should note that there are likely to be further amendments of the Bill as it progresses through the Houses of the Oireachtas. Provisions regarding registered office Changes are proposed in relation to a company’s registered office and electronic filing agents. These include the approval by the Registrar of Companies (“Registrar “) of a company as an electronic filing agent (EFA) and as a registered office agent. 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.   The Bill 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. Loss of Audit Exemption As set out in our previous note, a change to the rules regarding loss of audit exemption for small companies which fail to file their annual return is proposed. The current position is that the exemption is lost after one failure to file. The change proposed is that the company will not be entitled to an audit exemption for the following two years where it fails to deliver its annual return and has previously failed to file an annual return, in compliance with section 343 of the Companies Act 2014, in any of the previous 5 financial years. Proposed subsection (2) provides that a company’s failure to deliver its first annual return or a previous failure to file an annual return before the commencement of the provision shall not be considered as a previous failure for the purposes of subsection (1). Provisions regarding the Corporate Enforcement Authority (CEA) Section 393 provides that an auditor must notify the CEA if during an audit the auditor comes into possession of information leading them to form the opinion that there are reasonable grounds to believe a category 1 or 2 offence under the Companies Act 2014 has been committed. The Bill proposes an extra subsection requiring the auditor to furnish the CEA with such copies of, or extracts from, those books and documents as the CEA may require, accompanied by a certificate of the statutory auditors, bearing their signatures, stating that the copies or extracts so furnished are a true copy of, or extract from, the original books or documents concerned. (Note: the draft wording in the Bill is slightly different to the draft in the General Scheme). Provisions relating to IAASA The Bill proposes changes to delete the requirement that IAASA approves the constitution and bye laws of each prescribed accountancy body. Approval of the investigation and disciplinary procedures and standards of each prescribed accountancy body, and any amendments to the approved investigation and disciplinary procedures and standards is still required. Provisions in the General Scheme concerning the issuance of interim notices by IAASA are also contained in the Bill, now referenced as interim direction required to protect [the] public. Other The proposed amendment which we referenced in our previous news item so that weekends and public holidays are excluded from the time counted towards the minimum 48-hour notice required to appoint proxies has not been included in the Bill. 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.  

The size criteria for companies are laid down in the Companies Act 2014. The thresholds have been increased since July 1, 2024. Please see an Institute news item of June 24, 2024 on Increased size limits for Irish companies signed into law. The new criteria apply to financial years beginning on or after January 1, 2024. Companies may elect to apply the adjusted thresholds to financial years on or after January 1, 2023. This change in size will mean that more companies will move into the micro and small categories and will thus benefit through abridged reporting requirements and the audit exemption. Certain companies specified in the legislation are excluded from the micro, small or medium company or group regime e.g.” ineligible companies” as defined in the legislation. Reader’s attention is also drawn to the dormant company audit exemption where the requirements of section 365 of the Companies Act, 2014 are satisfied. The new company thresholds are as follows: Size - company Original thresholds New thresholds   Does not exceed  two or more of the following criteria for current and preceding year Does not exceed  two or more of the following criteria for current and preceding year Micro company Balance sheet total €350,000 Turnover €700,000 Employees 10 Balance sheet total €450,000 Turnover €900,000 Employees 10 Small company Balance sheet total €6 million Turnover €12 million Employees 50 Balance sheet total €7.5 million Turnover €15 million Employees 50 Medium company Balance sheet total €20 million Turnover €40 million Employees 250 Balance sheet total €25 million Turnover €50 million Employees 250 Large company: a company that does not qualify as a small company, a micro company or a medium company under the Companies Act, 2014 is deemed to be a large company (Section 280H Companies Act,2014).       Size - group Original thresholds New thresholds   Does not exceed two or more of the following criteria for current and preceding year Does not exceed two or more of the following criteria for current and preceding year Small group Balance sheet total €6 million net (€7.2 million gross) Turnover: €12 million net (€14.4 million gross) Employees 50 Balance sheet total: €7.5 million net (€9 million gross) Turnover: €15 million net (€18 million gross) Employees 50 Medium group Balance sheet total €20 million net (€24 million gross) Turnover €40 million net (€48 million gross) Employees 250 Balance sheet total: €25 million net (€30 million gross) Turnover: €50 million net (€60 million gross) Employees 250   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.