Donal Bourke began his career as an ACA, and now works in FinOps in Leeds, UK. He has also launched a YouTube channel advising others who might be considering a move into FinOps. Did you fall into finops or was it by design the you moved into the area. A keen interest in IT perhaps? My path to FinOps was a combination of luck and design. While working as an accountant, I enjoyed the people engagement side but was frustrated by the fact that we were often reporting figures after the fact – closing the gate after the horse had bolted so to speak. This prompted my first career pivot into analytics. My accounting qualification gave me a great understanding of how businesses work and a comfort with numbers. I took this base and built on it through acquiring skills manipulating large data volumes (ETL – Extract transform and Load) and developing data visualisation skills. These skills lead to my first career pivot into sourcing analytics. In this role I built data workflows to allow sourcing managers make better buying decisions based on what we had purchased in the past and planned to purchase in the future.  One of the categories I supported was IT Infrastructure with our largest spend being on public cloud. Given the size of the spend, this area began to focus more and more of my time. The more I learned about the public cloud the more opportunity I saw for someone who can wrangle large data sets, make sense of numbers, and communicate these to the business. I gained my FinOps certification and was approached about a FinOps consulting role in another company which is where I am now. What skills, intrinsic to an ACA, make you an effective proponent in the FinOps area? Growth mindset and continuing professional development is a key characteristic when working in the FinOps area. The cloud providers offerings are changing constantly as well as customers' IT infrastructure. All these changes need to be considered and appropriate actions taken to deliver the greatest value to our customers. What additional training did you have to do? If I was starting on the learning journey again the key steps I would take are as follows: Understand the basic concepts of cloud computing. I found this podcast (Cloudcast Basics) very useful AWS provide some free training material which would bring you through the various services in more detail Understand the kind of activities FinOps involves and get used to some terminology. Another podcast I found useful was Cloud Cost Optimization Take the FinOps certification course and exam to get accredited (the course is about $600 and the exam is about $300) Once certified you will have access to the FinOps community to show how to apply what you have learned. What is your take on the growing convergence between IT and finance/accounting? The rise of cloud raises a new challenge for finance. Previously, companies had on-premises data centres (private clouds) for which they would raise a Capex request which would go through the various levels of approval before the purchase is made. In the world of cloud, engineers are creating cloud resources with every line of code they write. The developer's priority is to make the system run while cost may be lower down their list. All these charges build on each other in opex leading to a growing cloud bill which may contain a rising level of technical debt. This is where FinOps comes in: to bridge the gap between the technical architecture and financial accountability. What advantage or differing insights do you have versus your IT professional counterparts in your current team? Being able to layer business context to the numbers and architecture is a major advantage. For example if a customer's cloud bill jumps all of a sudden, this may be due to a sale or promotion being run by the business. By understanding this context we can make better decisions. How do you see the area of FinOps evolving in the years ahead ? Is AI a threat to it or a boost? FinOps as a discipline has only been around since 2019 with earlier incarnations of cloud cost management only being a few years earlier. Given the early stages, the growth and foundational frameworks are still being put in place so it’s very hard to see where it will end. Given the volume of data being generated from cloud providers, data literacy will become more and more important. I can see AI having two major impacts in the FinOps space: AI being used a s a co-pilot to sift through vast data sets to find the anomalies that require action and optimisation All these AI models run on the cloud, guess who needs to monitor the efficiency of these cloud environments?… FinOps practitioners! I would liken it to being a shovel salesperson in California during the gold rush. A FinOps practitioner may not necessarily build the models, but they will be needed now more than ever. What does a typical month or quarter look like in the FinOps space? Daily monitoring of the customer's environment to optimise their cloud commitment mix to maximise savings Building data models to improve data points to allow better decisions be made for the above commitments Monthly/quarterly customer meetings where architecture changes are discussed to understand future optimisation opportunities No month end!! What career "stepping stones" would you recommend to a newly qualified ACA keen to get into this area? Much like my own additional learning I mentioned earlier, I'd try to grasp and learn the basic concepts involved in cloud computing; things like the Cloudcast Basics podcasts were helpful to me; The AWS training material can help boost knowledge of the services in a more detailed way; get your head around the terminology and get certified. That's really the key, as it can give you greater access to the community and opportunities within the industry. Donal Bourke is a Cloud Optimisation Consultant with NetApp Donal's YouTube channel, FinOps for Finance, gives an overview of FinOps, how it relates to finance, and how to pivot into a career in the growing space of cloud optimization.                                                 

The finance function has a key role to play in embedding AI into a company’s operations now and in the future, writes Katie Burns With financial data underpinning most business operations, how an organisation’s finance team embraces artificial intelligence (AI) will be central to how that business develops and grows. With their domain knowledge and controls-based mindset, the finance function is well placed to be an agent of change, embedding artificial intelligence into the operations of the wider company. The CFO The realisation that data is an asset means organisations will look to finance to prioritise business partnering as a way of sifting through this information and driving better strategic decisions. At the heart of this will be the Chief Financial Officer (CFO), whose role has undergone rapid change in recent years.  In the EY survey ‘DNA of the CFO: Is the future of finance new technology or new people?’, 69 percent of global finance leaders acknowledged this change and pointed to the automation of key finance tasks as the main factor driving the trend. The same report also indicated that 90 percent of companies worldwide are prioritising capital investment in digital transformation. While traditional financial responsibilities such as bookkeeping, financial planning, risk management and reporting are still central to the role, CFOs are now also accountable for the strategic direction of the company. Advances in technology mean they need to be on top of all developments in data analytics and related AI technology to manage forecasting and predictive insights. The use of integrated (internal and external) data models can provide real-time insights and predictive scenario-based analytics, which will enable more agile planning. As external operating conditions evolve, CFOs will also be better placed to deliver on the business need for more financial and non-financial information.   For the CFO to successfully implement new technology, they will need to drive a robust and sustained change management programme – in particular, successfully managing a workforce that may be apprehensive. To build confidence within finance teams, CFOs should consider strategies for upskilling and training, focusing on tasks that add value, and, most importantly, addressing concerns through open and transparent communication. On the other hand, when it comes to attracting talent, AI will be a selling point. Many early-stage accounting professionals now expect data-led technology to be the norm, so companies that are not investing in connected, data-driven and efficient systems will struggle. Leveraging technology to reduce manual tasks also means building a more insight-driven, client-focused finance team. The finance function  Perhaps no part of any enterprise has as many repetitive and routine tasks as a finance department. Inputting invoices, tracking receivables and logging payment transactions are high-cost, low-return activities. Using AI to transform these processes can significantly reduce manual effort while increasing data quality and accuracy, freeing up employees to work on value-add strategic work. Releasing the finance team from such tasks not only helps them to save time, it also means they are able to drive greater impact by employing their knowledge in other areas. Accountants’ expertise, for example in controls awareness and understanding data biases, can be used to design fraud and risk detection. By using machine learning to suggest risk rules based on a company’s own specific transaction and fraud data, suggestions can be made for fine-tuning the system and the rules used to flag potentially fraudulent activity. This innate capability can also be used to serve other departments across the organisation as they seek to embrace AI. Ultimately, for finance teams, understanding the collaborative power of AI is key, enabling them to leverage its usefulness so they can carry out more strategic work. While AI can process vast amounts of data at a rapid pace, it does not have the same critical thinking and decision-making capabilities as people. People have the ability to identify and address bias in data and core skills. They know the right questions to ask to help understand a client’s requirements, and which data will serve that client best. This means financial professionals have an important role to play in technological transformation. The future It’s not just through these current opportunities that AI has the potential to shape the finance function in the future, however. From automated report generation and improved forecasting to handling compliance matters through validation of disclosures for statutory reporting, the ability to interact with tools powered by AI will change how finance teams access and analyse data, driving better insights and potentially enabling them to identify more business growth opportunities. In the future, next-generation finance centres of excellence will leverage AI and emerging technologies to deliver faster and better integrated finance analytics and insights. Potential advancements here include:  More accurate forecasting drawing on both enterprise data and sources, such as customer behaviour and competitor activities; a greater understanding of strategic risk and resilience, including data-driven early warning systems; and more connected financial reporting, driving KPIs, stakeholder management and communication across multiple channels. When it comes to the more challenging aspects of developing a clear AI strategy and ensuring that organisations have the necessary capability, technology and stakeholder buy-in, the CFO will play a central role by empowering the finance team to make even better data-driven decisions and, in turn, positioning them as key drivers of the overall business strategy. Katie Burns is a Consulting Partner at EY Ireland

The pervasive use of business jargon can hinder effective communication and alienate colleagues and clients. Jean Evans explores the impact and pitfalls of using it in business According to Duolingo, many words and phrases used in ‘business English’ have been subsumed into other languages, and 60 percent of people say they had to figure out the jargon used on their own when entering an organisation or business sector. The prolific use of business jargon can not only lead to potential miscommunication, it can also exclude others in the organisation from networking within their business sphere. Why do we use jargon? The use of jargon can achieve several things. It can: project authority; convey sophistication; showcase trendiness; and show business savvy. However, jargon can make others in your organisation or at a networking event feel uninformed and stressed, leading to less productivity, miscommunication and heightening another person’s sense of imposter syndrome. Acronyms Acronyms can be equally confusing and isolating for people who don’t understand them. In business, we hear a tremendous number of acronyms. Never assume your audience understands them. If acronyms crop up, make sure they are explained in full at the outset. For example, “key performance indicator (KPI)” can be formatted to inform an uninitiated reader of the acronym’s meaning before they continue reading the document. Jargon in marketing and promotion The amount of jargon used in brochures, websites, social media pitches and proposals can be staggering, particularly in hard-to-understand areas such as finance. If you want to sell your services to those outside the accountancy profession, eliminate all the technical terms you would typically use daily from client-facing content and have someone outside your industry review copy to see if it stands up on its own. If they understand what you are trying to sell, so will potential clients. Raise your awareness Become aware of the language you use. It can create a barrier, but when used correctly, it has the power to include everyone in the conversation. Jean Evans is a Networking Architect at NetworkMe

Budget 2024 was substantial. Brian Brennan and Norah Collender outline the measures that will be implemented in the new Finance Bill Finance (No.2) Bill 2023 was introduced by Minister McGrath following a budget package worth €14 billion announced on Budget Day. The Bill is large by normal standards, running to over 270 pages, due to substantial legislation required to introduce the new minimum effective rate of tax for companies/groups with revenues exceeding €750 million. The Bill sets out the legislation for measures announced on Budget Day along with the customary raft of changes of keen interest to us, the accountancy profession, as advisors and business leaders.   Corporation tax  The Bill proposes numerous measures impacting businesses, including changes to corporation tax loss relief rules and amendments to the taxation of leases.   The Bill also includes a revised form of the bank levy for 2024 based on a measure of deposits held by each liable institution. In addition, the Bill sets in motion the Budget’s enhancement of the R&D Tax Credit (RDTC) rate to 30 percent and doubles a company’s first-year refundable RDTC instalment. These enhancements apply to accounting periods commencing on or after 1 January 2024. The Bill also introduces a ‘pre-notification’ requirement for new RDTC claimants or companies that have not made an RDTC claim in the three previous accounting periods.   New measures are also provided for in the Bill on outbound payments of interest, royalties and distributions (including dividends) to jurisdictions on the EU list of non-cooperative jurisdictions, no-tax and zero-tax jurisdictions. These measures are designed to meet commitments contained in Ireland’s National Recovery and Resilience Plan. Income tax The Bill sets out the required provisions to enable Budget increases to income tax rate bands, tax credits and reductions to USC. It also provides that gains on the exercise, assignment or release of a right to acquire shares or other assets will be assessed under the PAYE regime for gains realised on or after 1 January 2024. As with other emoluments and benefits chargeable under PAYE, employers will be responsible for processing the calculation and collection of tax as part of their employer PAYE returns.  Capital gains tax (CGT) and Capital acquisitions tax (CAT) The Bill proposes changes to CGT Retirement Relief for business owners and farmers, which extends the age limit for the relief from 66 to 70 but limits disposals to a child made by a disponer aged 55 to 69 to €10 million. This measure will be an impediment to a well-organised lifetime intergenerational transfer of larger businesses.    The Bill introduces a new CAT reporting requirement on interest-free loans involving private companies, even where no gift tax is payable. Clawback provisions impacting CAT Business Relief and Agricultural relief are also amended in the Bill.   Pension measures Several measures relating to pensions are proposed in the Bill, including the removal of the upper age limit on taking benefits from Personal Retirement Savings Accounts (PRSAs), allowing for drawdowns by PRSA holders after they reach the age of 75 years. The Bill proposes that Revenue will not approve any applications for new retirement annuity contracts received after 1 January 2024. Anti-avoidance measures in the Bill aim to prevent assets from being used to provide loans and/or as security to private companies. Pension funds will also have to ensure that tenancies are registered with the Residential Tenancies Board (RTB) to avail of gross roll-up on rental income.   Property The Bill legislates for the Budget’s relief at the standard rate of income tax for residential rental income earned by landlords with properties in the rental market from 2023 to 2027. In addition, the Bill clarifies the taxation of rents paid to non-Irish resident landlords by amending legislation introduced in the Finance Act 2022. In summary, where a tenant of a non-resident landlord pays rent to a collection agent, the tenant will not be required to deduct and remit withholding tax to Revenue. Instead, the collection agent may either deduct and remit tax to Revenue or otherwise remain assessable and chargeable for tax in respect of the rental income of the non-resident landlord.  The Bill also extends the Help to Buy scheme until the end of 2025.   VAT The Bill confirms a number of measures announced in the Budget, such as the extension of the nine percent rate of VAT for the supply of gas and electricity, the application of the zero-rate of VAT to certain audiobooks or eBooks, and the increase in the VAT registration thresholds. The Bill is currently making its way through the Dáil and is expected to be signed into law just before Christmas.  Brian Brennan is Tax Parter at KPMG Norah Collender is Tax Director at KPMG

Welcome to this edition of Technical Roundup. In recent developments, a new traffic light display, which will indicate if a charity has submitted their accounts and reports to the Charity Commission for Northern Ireland on time, is being rolled out on the Register of Charities; the European Securities & Markets Authority has published an article on the evolution of the European share market structure from 2019 to 2022, following the implementation of the markets in financial instruments directive (MiFID II). Read more on these and other developments that may be of interest to members below. Financial Reporting The Institute has issued its response to the International Accounting Standards Board’s (IASB) request for information on the Post-Implementation Review of IFRS 15 Revenue from Contracts with Customers. Whilst supporting the strong framework provided by the five-step framework in IFRS 15, the Institute made some recommendations and comments in its submission, including a request for further guidance in certain areas where the application of the standard is more challenging. The Institute has also issued its response to the draft amendments to the LLP SORP. Some of the updates being proposed to the SORP include. Updates for Climate-related financial disclosures Guidance relating to amounts payable to former members Guidance on sharing of group profits Guidance on automatic division of profits to members who do not provide any substantive services to the LLP An effective date of periods commencing on or after 1 January 2024 is proposed for the changes EFRAG and the UK Endorsement Board have also issued their responses to the IASB’s request for views on the Post-Implementation Review of IFRS 15. The Financial Reporting Council (FRC) has published a report looking at how companies can improve their corporate reporting by taking a more focused, strategic approach to assessing materiality. The European Financial Reporting Advisory Group (EFRAG) are holding a online roundtables for different interest groups at various dates in November and December entitled “Statement of Cash Flows – Is there a need for change?” In a thought provoking article, Oliver Boutellis-Taft, CEO of Accountancy Europe, discusses the methods used to categorise entities for regulatory purposes across Europe. This is largely performed using quantitative metrics such as turnover. In the article, the potential benefits of the use of more metrics which are based on impacts and risks are discussed. Accountancy Europe has issued its October 2023 Newsletter. The IFRS Foundation has issued its National Standard-setters newsletter. This discusses the recent World Standard Setters Conference which was held in London on 25th and 26th September. The IASB has issued its October 2023 update. this summarises the recent activities and decisions made during their recent meetings. The IASB has also released its October 2023 podcast. The IFRS Foundation has also released its October 2023 monthly news summary. IFRIC, the IFRS Interpretations Committee has issued its September 2023 update. This summarises the decisions reached by the Committee in its recent meetings. Assurance and Auditing The Financial Reporting Council (FRC) has launched a consultation to strengthen auditor requirements to detect and report material misstatements from non-compliance with laws, ISA(UK)250A and ISA (UK)250 B, and regulations and to clarify when auditors should report such breaches, and other significant matters, to the relevant regulators. The aim is to enhance the useability and informativeness of the audit. They are consulting on strengthening both ISAs and the consultation closes on 12 January 2024. The FRC are planning a webinar and roundtables in  November for interested parties. Chartered Accountants Ireland has responded to the FRC’s consultation on proposed amendments to the Ethical Standard for Auditors. We welcome the moves to align with the IESBA standard and we are supportive of changes which add clarity and therefore make compliance easier, but we have concerns that the proposed effective date of 15 December 2024 might not allow firms sufficient time to make the necessary changes to their global systems. Sustainability Proposed ISSA 5000: the application of materiality by the entity and the assurance practitioner. As part of the IAASB's intensive outreach campaign across the globe, there were requests from a range of stakeholders to provide additional information on materiality matters to better help them navigate the recently proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. This comprehensive set of Frequently Asked Questions was developed to respond to these requests. The compilation addresses a variety of questions, including how the concept of materiality applies to sustainability reporting and assurance; the definition of double materiality; and how an assurance practitioner considers an organization’s “materiality process” during a sustainability assurance engagement, among other questions and answers. Following the passing of the scrutiny period for the European Sustainability Reporting Standards (ESRS), the 12 standards have now been adopted and integrated in the European legal framework. The European Financial Reporting Advisory Group (EFRAG) have welcomed this significant milestone and noted its dedication to providing support for the successful implementation of the suite of standards. This includes: Their launch of a Q&A platform to encourage stakeholder dialogue The development of further standards for SMEs The ESRS did not go unchallenged through the period of scrutiny and on 18th October, a resolution calling for a new delegated act to be submitted (containing significant reductions on the level of requirements placed on companies by the CSRD and ESRS) was defeated in the European Parliament by a margin of 359 against to 261 in favour. Whilst the challenge was defeated, it is notable that the margin in favour of a revision to the CSRD was significant. Accountancy Europe together with ECIAA and ecoDa has released a publication entitled “ESG Governance: questions boards should ask to lead the sustainability transition”. This publication aims to help boards in embedding sustainability factors into company strategy and business models and to ensure proper governance of this. The Brazilian Ministry of Finance and the Comissão de Valores Mobiliários (CVM) have announced that the International Sustainability Standards Board’s (ISSB) IFRS Sustainability Disclosure Standards will be incorporated into the Brazilian regulatory framework, setting out a roadmap to move from voluntary use starting in 2024 to mandatory use on 1 January 2026. The FRC and the British Accounting and Finance Association's (BAFA) hosted a joint event: Embedding Sustainability in Audit and Accounting Education—A forum for Professional Accountancy Bodies, Academics, and Training Providers on 1 November at Manchester University. The International Sustainability Standards Board has issued its ISSB Update, and the latest episode of the ISSB podcast. Insolvency For readers who did not secure a place on the Corporate Enforcement Authority’s (CEA) inaugural conference of 19 October 2023 ,the CEA has now made available the content of most of the papers delivered at the conference and readers can access the papers on the CEA’s website under the “Events “ button. A notable judgement has been handed down in a recent examinership case. In the case involving Mac Interiors Limited, Mr Justice Michael Quinn ruled that the court had no jurisdiction to confirm the scheme of arrangement proposed by the Examiner. Read the article on our website here. Economic crime/Anti-money laundering Readers should note that the Economic Crime and Corporate Transparency Act received royal assent on 26 October 2023. Please click here to access the legislation and here for a press release from UK government on the legislation. It includes new enhanced powers for UK Companies House and a new much debated failure to prevent crime offence for large organisations. More detailed analysis of the legislation and its applicability to our readers will follow in future news items. The Institute’s Professional Standards Dept. (PSD) has recently issued its AML supervision report 22/23. The report outlines PSD’s risk methodology identifying various risk factors to which accountancy firms may be exposed, including but not limited to higher risk services; higher risk clients; exposure to high-risk jurisdictions; complex firm structures and poor regulatory history. It also deals with risk profile of TCSPs (ROI - med/high risk of money laundering, med/low risk of terrorist financing and UK high risk of money laundering). Emerging risks include increase in insolvencies, risks associated with bounce back loans, the ongoing crisis in Ukraine and cryptoassets. Finally, the most common findings related to breach were no or inadequate documented policies & procedures, inadequate documentation of CDD, no or inadequate CDD procedures, no ongoing CDD monitoring, no or inadequate client risk assessment/record missing, no/inadequate periodic review of compliance with AML regs, no or inadequate training, no or inadequate firm-wide risk assessment. In the latest SARs in Action magazine, a wide range of money muling issues are discussed. The National Crime Agency 's National Economic Crime Centre looks at how money muling networks may form, there is a look at how money muling is addressed within the banking sector by NatWest Group, and a discussion on educating young people on the threat of money muling by UK Finance.  The latest Financial Action Task Force (FATF) 'High-Risk Jurisdictions subject to a Call for Action' (black list ) and 'Jurisdictions under Increased Monitoring' (grey list ) documents issued by the FATF on the 27 of October 2023 are now available on FATF’s website and you can access the information here. Other News The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have published a Consultation Paper on two draft Joint Guidelines covering suitability assessment of members of the management body, and suitability of shareholders and members with qualifying holdings of issuers of asset referenced tokens (ARTs) and of crypto-asset service provider (CASPs).  A new traffic light display, which will indicate if a charity has submitted their accounts and reports to the Charity Commission for Northern Ireland on time, is being rolled out on the register of charities. The Central Bank of Ireland are hosting a Financial System Conference 2023 – Achieving good outcomes in an uncertain world – which will take place on 8 November 2023 at the Aviva Stadium in Dublin.  This event will bring together diverse perspectives from industry leaders, consumer representatives and policymakers, from Ireland and across the EU, to discuss and debate key issues for the financial system.  UKFIU's magazine SARs in Action: Special edition on Money Mules The Financial Reporting Council (FRC) welcomes the appointment of Alan Vallance as the Institute of Chartered Accountants in England and Wales’ (ICAEW) Chief Executive Officer, replacing Michael Izza who is due to retire in spring 2024. ESMA has published an article on the evolution of the European share market structure from 2019 to 2022, following the implementation of the markets in financial instruments directive (MiFID II). Specific focus is given to the impact of the UK’s withdrawal from the EU, given its pivotal role in equity markets. In an interesting article issued by IFAC, Pascal Bornet discusses the opportunities that artificial intelligence and intelligent automation provide to accountants. The Screening of Third Country Transactions Bill 2022 was signed into law by the President on 31st October 2023. The finalised text of the legislation is not yet on the Irish statute book website and it is anticipated that it will not become operational until Q2 2024. The legislation when operational will require that certain investments in critical Irish industries that may present risks to Ireland’s security or public order must be reviewed by the Minister for Enterprise Trade and Employment. The legislation will apply to transactions (or an accumulation of transactions in a twelve month period) equal to or greater than €2,000,000. Third country is  any non-EU/EEA country other than Switzerland. Therefore the UK and the US fall within the definition of third country. The types of transaction to which the legislation will apply are set out in Article 4(1) (a)-(e) of the 2019 EU regulation establishing a framework for the screening of foreign direct investments into the Union such as critical infrastructure including energy transport, water and critical technologies including aerospace, defence, energy storage. The trigger for a transaction to fall within the scope of the legislation is a change in shares or voting rights from 25% or less to more than 25% or from 50% or less to more than 50%. The Minister can review transactions post completion in certain circumstances and can call in certain transactions even if non notifiable where there are reasonable grounds for believing that the transaction would be manifestly contrary to Irish security or public order. Following recent changes in UK legislation, cryptoassets promotions targeting UK customers now fall under the remit of the Financial Conduct Authority (FCA). In light of this, the FCA has introduced rules designed to give people a better understanding of what they are investing in. They have also issued guidance to support crypto firms in complying with the new marketing rules. The European Commission has adopted the proposal to increase the company size thresholds set out in the Accounting Directive. This follows a consultation period in recent months which proposed a 25% increase in the size limits for turnover and balance sheet total to reflect the levels of inflation since the limits were introduced. The Institute, under the auspices of CCAB-I issued a response to this in October and agreed with the proposed increase. The amendments will not come into force until they are published in the Official Journal. Once in force, the changes would allow member states, including Ireland, to increase their company size thresholds for turnover and balance sheet total locally. The FRC has released two reports on the actuarial profession in the UK. One report highlights gender imbalance in the profession, its second report looks at the use of AI and machine learning in UK actuarial work. The CRO has published its Christmas filing deadlines and clarifies that processing before the Christmas break of submissions received after the dates below cannot be guaranteed:            FE PHRAINN ONLINE SCHEME 12 DECEMBER 2023 A1 ORDINARY ONLINE SCHEME 7 DECEMBER 2023 CHANGE OF NAME 8 DECEMBER2023 REREGISTRATIONS 8 DECEMBER 2023 COMPANY NAME RESERVATIONS 15 DECEMBER 2023 For further technical information and updates please visit the Technical Hub on the Institute website.  

Ronan Guilfoyle was inspired by a friend who made the move to the Cayman Islands, so when the opportunity arose to do the same, he took the leap. We caught up with Ronan to learn a little more about his life and work in the Caribbean. 1. Where did you grow up and where do you live now?   I was born and raised in Douglas in Cork. In 2002, I moved to the Cayman Islands where I still live. 2. Can you tell us a little about how you got to where you are today – both the geographical relocation and career path. And, looking back, what advice would you give your 20-year-old self? It's a long story! I got my degree in accounting from Universtity College Cork and then became an Auditor with EY in Cork, and passed my FAEs in 2000. Just the next year, a friend of mine who was also an accountant moved to the Cayman Islands and as we kept in touch I became more and more interested in that kind of work and lifestyle. And a year after that, an opportunity came up to work in Cayman in fund administration. At that time, the Cayman Islands was the leading offshore fund domicile, primarily serving a US client base. It's a highly successful international financial centre, due to its flexible regulatory framework- based on UK common law, a stable political climate and its tax neutral status. When I arrived, I first worked with a boutique fund administration firm, which was later taken over by a larger more established player. Over the next four years, I rose to Senior Manager level and was offered the opportunity to return to Ireland to open an office for the firm. At the same time, I was also approached by a former employer to join him at DMS (now Waystone), which was one of the larger governance firms in Cayman. I was really enjoying my time in Cayman and I wasn’t ready to come home yet, so I stayed. Cayman is an incredible place to live, with good weather all the time, beautiful beaches and a great community of professionals working in the financial services sector.  The infrastructure and amenities here are first class and we are just an hour away from Miami. I had also established a life here, with friends and hobbies, plus a good standard of living. Part of my mandate at DMS was to expand the firm outside of Cayman as then it was only operating from one jurisdiction. I opened the first international office in my home town in Cork, shortly afterwards another one in Dublin, and by 2012 there were a further six offices across the network and a significantly larger team. In 2010, I was made a partner. After 10 years with the company, I felt the time was right to start my own firm. I invited a colleague, Wade Kenny, to join me and we started Calderwood in 2016 as a specialist fund governance firm. Fast forward to now, and by the end of this year, we will have 14 people in the team, and we're winning awards for our work. We have expanded our presence to the US, Asia and the UK. Thinking about what advice I would give my younger self is an interesting exercise because I’ve been quite successful and have enjoyed the things I have done. I’ve learned that nothing comes for free and in order to progress at any level at any firm, I think you have to be willing to work incredibly hard, but also efficiently – to maximise the effort. Sometimes that entails some sacrifice, but in my case I feel it has been worth it.  I think one of my key strengths is to trust my gut and make decisions quickly. That’s not to say haven’t made any mistakes, but it’s about what you do with each lesson. That’s the most important thing to take forward.  3. What made you choose to become a Chartered Accountant? It was always a favourite subject at school and something that I to excelled at. A friend’s father had a small accountancy office and I did some work experience with them. It was administrative work, but I really enjoyed working with the accountants there. This all drove me to the career decision, and I was able to formulate a plan for how to get there. I chose accountancy as a Leaving Certificate subject, then I did a specialised degree focused on accounting so I could complete the first two years of my accountancy exams sooner. I think the combination of my natural aptitude, plus my enjoyment of the subject matter really helped me to accelerate my learning and kick start my career. 4. What do you value most about your membership of the profession and how do you think those benefits can be used to support the economy and society? Being part of this industry group and the association is very important to me. I remember reading many years ago that 60% of Fortune 500 CEOs were accountants, and I was very impressed by that. The designation certainly helps open doors for you, particularly through fellow members of the Institute. And as we all know, the designation is recognised all around the world, which is useful. 5. As a member living away from Ireland, can you talk to us about how your membership has been of value to you living overseas?  The membership really helps me feel connected with what’s happening in Ireland. The emails and other publications are very useful to keep up with things from a tax perspective. I may well return to Ireland one day, so keeping the connection active is important to me. I have always maintained my designation with the Institute and appreciate being part of this elite group of Irish accountants.  When I heard that a member chapter had established in Bermuda, I thought to myself that as we have lots of accountants here, it would make sense to start our own group in Cayman: to have a Cayman voice for our Irish Institute members. We hope to hold our first meet-up event soon. The Irish community here is already very close and I think this is a great way to strengthen those ties and mentor some of the newer Irish accountants who have just come to Cayman. We can advise them and be a resource as they navigate the industry here for the first time. The Irish community here gave me an excellent welcome and that was also one of the things that inspired me to set up this new chapter.  6. What were the most significant/noticeable differences you encountered doing business and networking away from home and back in Ireland? I have spent the majority of my career in the Cayman Islands and people do make the predictable jokes, but it’s not about all sitting on the beach and drinking cocktails. While I can’t deny it’s a fabulous place to live, the truth is it has taken many long days and long nights for me to achieve success, which of course is the case anywhere. Having support from other Irish people in all sides of life was great. I think pretty much anywhere you go in the world you can find a great community of Irish people and that is certainly the case over here. A lot of the networking in Cayman revolves around the Irish pub and the Gaelic Athletic Association, which is one of the biggest clubs on the Island.  Ronan Guilfoyle is Co-Founder and Director of Calderwood.      

In its response to the International Accounting Standards Board’s (IASB) Request for information on the Post-implementation review of IFRS 15 Revenue from Contracts with Customers, the Institute’s Financial Reporting Technical Committee agreed that IFRS 15 has achieved its objectives and is working well, with some aspects challenging to apply. IFRS 15 became effective for periods commencing on or after 1 January 2018, and in June 2023 the IASB issued their request for information to form part of the post-implementation review process. The objective of a post-implementation review is to assess whether the effects of applying the new requirements on users of financial statements, preparers, auditors and regulators are those the IASB intended when it developed the requirements. Whilst supporting the strong framework provided by the five-step framework in IFRS 15, the Institute made some recommendations and comments in its submission, including; Further guidance is required to support the standard in some instances. This is particularly required in response to the fact that some entities have changed the way in which they operate since IFRS 15 was initially issued. The benefits of the standards outweigh the costs of implementing it. Further guidance is needed in relation to the identification of performance obligations of a contract in certain scenarios (eg. Software as a service contracts, distinct vs indistinct services and software updates). Further guidance is needed in relation to accounting for sales based taxes due to diversity in accounting practices being applied. Principal vs Agent considerations are one of the more challenging aspects of IFRS 15 to apply and further clarifications and guidance are needed, particularly in the area of the clarification of the concept of control. Further guidance is needed in relation to the interaction of IFRS 15 with other standards, including IFRS 3 Business Combinations IFRS 9 Financial Instruments IFRS 16 Leases IFRS 10 Consolidated Financial Statements The Institute believes that the level of convergence achieved to date on IFRS 15 and US GAAP is important and any changes to US GAAP or IFRS 15 should be monitored in this regard.

97% of parents surveyed by Chartered Accountants Ireland report that their career or working pattern has been impacted by childcare responsibilities. The findings show that 16% reduced their working hours, one quarter (27%) requested to work flexible hours, and one in five (19%) are currently considering adjusting their working hours. The survey, which gathered responses from chartered accountants in the Republic of Ireland has shed light on the significant challenges facing parents seeking childcare in Ireland. It highlights the crucial issues of cost barriers and their impact on career progression, while calling for increased childcare support. Chartered Accountants Ireland represents over 32,000 professional accountants, two thirds of whom work in business. When asked what they saw as the main barriers to securing appropriate childcare in Ireland, members highlighted both cost and capacity as being the biggest issues facing working parents. The financial burden is clear, with one third of members paying up to €1,000 a month per child on childcare, and one third paying between €1,000 and €2,000 per month. Commenting Cróna Clohisey, Tax & Public Policy Lead, Chartered Accountants Ireland said “The significant cost burden is one element of the problem, but even accessing places in childcare facilities in the first instance is a big barrier. As most of us know, this process begins long before a child is even born. Members are clear that both cost and the lack of available spaces need to be addressed by Government in order to better support working parents.”  This month’s Budget announcement provided for an increase in the national childcare subsidy (NCS) from €1.40 to €2.14 as well as extending the NCS to certain childminders, but the Institute argues that while this will help with the cost of childcare, it will not address capacity constraints within the market. Clohisey continued “A longer-term strategy for tackling ongoing capacity issues in the sector is critical – quite simply more places need to be made available but that can only happen with appropriate funding so that staff are adequately paid and therefore attracted and retained. We have an economy at full employment, and our members are overwhelmingly reporting childcare as a barrier to their full participation in the market. “While a government commitment was made to address supply issues through core funding, this funding must go beyond just keeping the sector from collapse. We are asking government to recognise that childcare provision is part of the critical infrastructure necessary for a functioning economy. The crisis needs to be addressed with a long-term strategy with children at the forefront, that adequately funds the sector, increases capacity, and supports working parents.”  

In a recent study analysing the VAT gap published by the European Commission, the VAT lost by Member States in 2021 was €61 billion, over €30 billion less than the comparable figure in 2020. The VAT gap is a measure of the difference between what should be collected and what is actually collected. The unprecedented year-on-year improvement is likely due to a variety of factors, although the uplift in electronic payments and online shopping in 2021 is likely a significant driver. The rate of VAT compliance tends to be greater online and with e-payments.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes.

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place.

We have compiled the latest updates to various HMRC VAT publications, briefs and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the UK’s departure from the EU. VAT: Introducing a new zero rate to extend the scope of patient group directions; Revenue and Customs Brief 7 (2023): change to the VAT treatment of drugs and medicines supplied under patient group directions; Interpretation of VAT and excise legislation; Buildings and construction (VAT Notice 708); Revenue and Customs Brief 6 (2023): VAT liability of digital publications — Supreme Court decision in News Corp and Ireland Ltd; Fuel and power (VAT Notice 701/19); Register to report and pay VAT on distance sales of goods from Northern Ireland to the EU; Notice in accordance with paragraph 8(2) of Schedule 9ZD to the Value Added Tax Act 1994 Insolvency (VAT Notice 700/56); Register to report and pay VAT on distance sales of goods from Northern Ireland to the EU; Notice in accordance with paragraph 8(2) of Schedule 9ZD to the Value Added Tax Act 1994; and Insolvency (VAT Notice 700/56).

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit and the latest Trader Support Service bulletin is also available. We also remind you to that the Institute will be attending the next UK Domestic Advisory Group meeting on Monday 6 November and would welcome your feedback by Friday 3 November on specific areas of concern which arise in relation to the Trade and Co-operation Agreement. Miscellaneous updated guidance etc. The following updated guidance, and publications relevant to EU exit are available:- Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; Remote internal temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Importing bananas you have to pay duty on into the UK; Authorisation type codes for Data Element 3/39 of the Customs Declaration Service; Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS); and Upload documents and get messages for the Customs Declaration Service.

This week we bring you news about planned outages to certain HMRC services over this coming weekend and updated guidance is available for companies claiming the super-deduction or special rate first year allowances. HMRC has also published its most recent performance reports and HMRC’s Insolvency Team is commissioning a series of surveys to obtain feedback from insolvency practitioners. Planned outages to HMRC services Read the below message from HMRC about outages to some services over this coming weekend. “From 10:30pm on Friday 3rd November until 07:00am on Monday 6th November 2023 HMRC is making planned upgrades to some of our IT, moving our internal systems that support our tax credits work, and other services that rely on this infrastructure, to cloud-hosting. This means a small number of internal and external services will be either fully unavailable or have limited functionality during the migration. This will take place from 10:30pm on Friday 3rd November until 07:00am on Monday 6th November and will improve the reliability, resiliency, and security of the service. As per our business opening hours, there’s no impact across our telephone lines as they are closed for the weekend. Our Customs and International Trade line is open and this migration has no impact. The webchats that are operational during this weekend (Saturday only) and may be impacted are listed below.  Depending on the query, our advisors may only be able to provide generic advice. Needs Extra Support Online Services Helpline Self-Assessment Customer-facing impact  Impacted digital services detailed below will have suitable messaging explaining that the services is unavailable either on GOV.UK, PTA or HMRC’s App and will advise customers to check back from Monday at 07:00am. Services: Marriage Allowance Employee Expenses Tax Credits Service Help to Save PAYE Income Tax History SA – Set up a Payment Plan EPAYE – Set up a Payment Plan VAT - Set up a Payment Plan Exercise Environment Insurance Transport Taxes Service (amendments) Online Tax Registration Service Services and internal operational impacts are subject to change. We do expect services to be up and running by midday on Sunday 5th November if the migration is successful.” Super deduction and special rate first year allowance guidance The guidance on claiming the super-deduction or special rate first year allowance (“FYA”) on plant or machinery costs for companies has been updated. Readers are reminded that these capital allowances incentives came to an end on 31 March 2023 but were replaced by full expensing and a new 50% FYA for special rate and long life assets. The updated guidance on the super-deduction and 50% FYA is still relevant to companies making claims in respect of such expenditure incurred up to 31 March 2023 and will also be relevant thereafter to disposals of such assets in accounting periods either straddling 31 March 2023 or falling wholly after that date. HMRC performance reports HMRC’s has published its most recent monthly performance reports and specifically the report for August 2023.. From 2 October, HMRC is no longer aiming to operate to a 10-minute service level on the Agent Dedicated Line. The Institute regularly discusses HMRC performance at stakeholder forum meetings and welcomes your feedback at any time. HMRC’s performance continues to be under pressure due to ongoing budgetary constraints and high inflation Insolvency survey HMRC’s Insolvency Team announced in its September 2023 edition of Insolvency Guidance that it is commissioning a series of surveys to obtain feedback from insolvency practitioners. The first survey, which is now open, examines the experiences of insolvency practitioners’ in contacting HMRC’s VAT helpline and will remain open until 1 December 2023. 

Today, Tuesday 31 October 2023, is the self-assessment paper filing deadline for 2022/23 to avoid penalties. Readers are reminded that if an online self-assessment return cannot be filed by virtue of one of the online filing exclusions or special cases (search GOV.UK for details as these regularly change) meaning the return must be filed on paper instead, then in those cases, the 2022/23 paper filing deadline is extended to 31 January 2024. A reasonable excuse claim should accompany such returns.

Readers will be aware that the Institute has been lobbying HMRC from the beginning of September in relation to the 31 October 2023 deadline for selling second-hand motor vehicles under the VAT margin scheme, where these were bought in GB and transferred into Northern Ireland prior to 1 May 2023. HMRC’s VAT policy team confirmed to us in a meeting last week that dealers can continue to use the VAT margin scheme for such vehicles that were in stock on 1 May 2023 as long as these are sold by 30 April 2024. Hence the previous deadline has now been extended by six months. According to HMRC, there will be no further extensions to this deadline thereafter. The Institute is pleased to see HMRC have taken the decision to extend this deadline which clearly recognises the difficulties being experienced by dealers in selling these vehicles in the current economic climate. The guidance on GOV.UK has now been updated to confirm this. Once again, the Institute thanks those members and businesses who provided supporting information to assist us in achieving this result. HMRC’s email message confirming the extension says the following:- “We have listened to feedback from businesses about the 31 October deadline, and have now extended the period that you can use the VAT margin scheme for vehicles you had in stock on 1 May 2023 and have not yet sold. You can now use the VAT margin scheme for eligible motor vehicles that you purchased in Great Britain and moved to Northern Ireland before 1 May 2023 and still have in stock,  if you resell them by 30 April 2024. If you sell them after 30 April 2024, you will have to account for VAT on the full selling price. Find out more information about motor vehicles you had in stock on 1 May 2023.”  HMRC has also asked to us to issue a reminder that the new VAT related payment scheme should be used, where the relevant conditions are met, in relation to second hand vehicles bought in GB and transferred to Northern Ireland from 1 May 2023. The relevant guidance for such vehicles is available here. Should you have any queries in relation to the extension to the VAT margin scheme deadline or the new VAT related payment scheme, please get in touch.

Professional Standards Department is pleased to publish its AML Supervision Report 2022/2023. This is the first Report to cover our AML supervisory activities in both jurisdictions, ROI and UK.

President Sinead Donovan was in the US this week, meeting with a variety of members and stakeholders. The insights gleaned on the trip will be put into action in the coming weeks and months, but among the key takeaways is that the US remains a destination of choice for Irish ACAs so our task is to drive greater awareness of the opportunities for members; our response to issues like the attractiveness of the profession, adapting to new sustainability reporting standards and cybersecurity will be shaped through collaboration with our US partners; and finally, our profession will continue to play a key role on both sides of the Atlantic driving and servicing inward FDI  in support of Ireland’s economy. Member engagement There is no doubt that the US remains a destination of choice for Irish ACAs and the President heard directly from these members during several office visits and two member events. The ACA proves to be a door opener for so many of our members when they arrive in the States, as indeed does the Mutual Recognition Agreement for members practicing, so our task now is to drive greater awareness of the opportunities and help new and existing members to access these.  Partner engagement As ever, the challenges for the profession are the same whether in Naas or New York. The attractiveness of the profession and sustainability reporting standards were two topics that, as expected, the President devoted a lot of time to in meetings with among others IAASB, AICPA, Chartered Accountants Worldwide Network USA, Deloitte EY, PwC, KPMG, and Harvard University.  How we as a profession adapt to the new reporting standards and educate our members on them will be shaped through such collaboration, and Chartered Accountants Ireland will be at the heart of that. The same goes for selling the attractiveness of the profession, with a focus on demonstrating the different routes into the profession and demonstrating through our actions our commitment to a healthy work-life balance. Perception is still an issue. In meetings with Boston College, the scale of the profession’s role when it comes to cybersecurity was reinforced. There are approximately 4million open roles in cyber security globally, and accountants are ideally placed to play a central role in tackling the challenge. The Institute held its inaugural seminar for members with Boston College in Dublin last April, and there is so much scope to expand this education to position members to have an impact.  Working for Ireland Inc It was great to meet the IDA and some of the companies (powered by ACAs) supporting inward FDI. Against the backdrop of a new global minimum corporation tax rate from 2024, and stiff competition for investment, our profession will continue to play a key role on both sides of the Atlantic driving and servicing that investment so well for Ireland’s economy. For our part, we will continue to ensure the Institute has a strong voice in demonstrating how the profession can continue to support FDI and be a strong resource for companies.

For readers who did not secure a place on the Corporate Enforcement Authority’s (CEA) inaugural conference of 19 October 2023 ,the CEA has now made available the content of most of the papers delivered at the conference and readers can access the papers on the CEA’s website under the “Events “  button .The following is a list and some details of what is contained in the papers. “Opening Remarks” Ian Drennan CEO of Corporate Enforcement Authority The evolution of compliance in the last 25 years with there now being widespread compliance with company law. The remarks also allude to the CEA’s strategy for 2022-2025. “Searching for evidence in the digital age”  James Dwyer, SC   This material considers the extent to which searches for criminal material can encroach upon a citizen’s right to privacy and legal professional privilege. It refers to a number of recent cases including the case of People (DPP) vs Quirke where the  Supreme Court held that although the search under a warrant issued was lawful, in the absence of specific permission being sought and given to search the computers, the search of the computer was not lawful. “Privacy, privilege, and access to data” Bernard Condon, SC The slides reference the Quirke decision and the 2023 decision in Corcoran v the Commissioner of an Garda Síochána. “European Public Prosecutor’s Office” Claire O’ Regan, Office of the DPP The slides content includes background on the EPP’s office, its competence, structure, its investigations, and prosecutions. “The Evolution of Ireland’s restriction of company directors’ regime.” Aoife McPartland, CEA Director “The challenge of privacy law to corporate transparency and probity" Paul Egan SC This  paper addresses the topical issues of public access to information such as CRO documents and information versus the EU trend towards concealment of ownership information and corporate secrecy .The paper refers to further reading material on this area. It also contains many useful diagrams including comparators on access to company registers ,who has the right to inspect and take copies and RBO information for Irish private companies and group structures. The paper  also signals the presenter’s view of the shortcomings of the attempted Irish fix (Beneficial Ownership Of Corporate Entities) (Amendment) Regulations 2023) in light of the 2022 ECJ ruling  where the ECJ held invalid the provisions of the AMLDs which require information on the beneficial ownership of corporate /other legal entities to be accessible in all cases to any member of the general public. You can read further about that on his firm Mason Hayes &Curran’s website Encroachment of Privacy Law on Disclosure of Company Information.  “The new European Directive harmonising certain aspects of insolvency law, directors' duties, Simplified Liquidation Procedures, and other matters."  Professor Irene Lynch Fannon This presentation deals with the proposed INSOL directive including certain elements such as harmonisation of insolvency and rescue law in the EU, the codification of common law rules and equitable principles and enforcement with a particular focus on company directors’ duties and proposed simplified liquidation measures. The presenter in comments after the event said that these [proposals in INSOL Directive ] “…. are all interesting developments and are even more interesting when considered in the context of the Preventive Restructuring Directive 2019/1023, now implemented in Ireland in 2022 in EU (Preventive Restructuring) Regulations amending the Companies Act 2014. As regards Directors' duties in particular there is some unresolved tension between Art 19 of the latter (now s. 224A/2014 Act) and the proposed Arts. 36 and 37 of the new Directive”. Investigations under the Companies Act  Neil Steen S.C. The primary subject of the paper is stated to be the court’s power to appoint inspectors to investigate the affairs of a company, but the paper also observes that the CEA enjoys certain other powers that are in practice highly relevant to an application to the court. .The paper references a table of relevant statutes and case law, and its content includes the purpose of company law inspections and powers of inspectors . 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.