In this week’s EU exit bulletin, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available and HMRC has sent an email about the impact of industrial action on 15 March on goods movements. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Apply for a certificate confirming an employee pays UK National Insurance when working abroad (CA3822); Check simplified procedure value rates for fresh fruit and vegetables; High risk food and feed of non-animal origin (HRFNAO): official certificates; Apply for approval to be part of the Registered Consignee scheme in Northern Ireland; Apply for approval to be a tax representative in Northern Ireland; Apply for an Advance Origin Ruling; External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Notices made and draft notices to be made under the Taxation (Cross-border Trade) Act 2018; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); Customs Declaration Service communication pack; External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; and Manually arrive your goods in the UK.    

Readers may know that in March 2022, the FATF agreed on tougher global beneficial ownership standards in its revised Recommendation 24. It requires countries to ensure that competent authorities have access to adequate, accurate and up-to-date information on the true owners of companies. The FATF has now updated the guidance that will help countries implement the revised Recommendation 24. It writes that the guidance will help countries identify, design and implement appropriate measures in line with the revised Recommendation 24 to ensure that beneficial ownership information is held by a public authority or body functioning as a beneficial ownership registry, or an alternative mechanism that enables efficient access to the information and will also help countries assess and mitigate the money laundering and terrorist financing risks associated with foreign companies to which their countries are exposed. Click here to read a useful summary page on the guidance and to find a link to the guidance. 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 European Financial Reporting Advisory Group (EFRAG) has released a series of 20 educational videos on the first set of draft European Sustainability Reporting Standards (ESRSs). These videos provide some useful guidance in the form of short "glimpses" and longer "educational sessions" which will help viewers gain an understanding of the requirements as set out in the ESRSs. The ESRSs , which were subject to public consultation in 2022 set out the sustainability reporting requirements which will be phased in over time for different kinds of companies, with the first reporters doing so for years commencing on or after 1 January 2024.

Welcome to this week’s Technical Roundup.  In developments this week, the CCAB-I Insolvency Committee has recently made a submission to the Department of Enterprise, Trade and Employment on their call for views in response to the proposal for an EU directive harmonising certain aspects of insolvency law; the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, held its plenary meeting on 22/24 February and has now published the outcomes on its website. Read more on these and other developments that may be of interest to members below. Audit and Assurance The Irish Auditing and Accounting Supervisory Authority (IAASA) has published its 2021 Annual Audit Programme and Activity Report. This report provides a summary of the activities performed by IAASA during 2021 to oversee the audit profession in Ireland. The report outlines the outcome of IAASA’s quality assurance review of auditors of public–interest entities as well as IAASA’s oversight of the recognised accountancy bodies who supervise auditors of other Irish entities. Insolvency The CCAB-I Insolvency Committee has recently made a submission to the Department of Enterprise, Trade and Employment on their call for views in response to the proposal for an EU directive harmonising certain aspects of insolvency law. This submission which is available to read here was generally supportive of further harmonisation of existing avoidance actions across the EU. The Corporate & Insolvency Bar Association is hosting its inaugural annual conference on Friday, 31 March. There will be a drinks reception and dinner taking place after the conference. The conference schedule and booking details are available here. Financial Reporting The Financial Reporting Council (FRC) has published a thematic review on the Big 4 audit firms’ methodology around IFRS 9, focussing on the audit of Expected Credit Losses for larger banks. The European Financial Reporting Advisory Group (EFRAG) has released a report with the key messages and discussion points covered at the January 2023 IFASS (International Forum of Accounting Standard Setters) meeting. The International Accounting Standards Board (IASB) has issued its February 2023 update and monthly podcast. The IFRS Foundation has released its February 2023 monthly news summary which includes details of meetings held, decisions made and activities during the month. The UK Endorsement Board (UKEB) has issued a draft comment letter on the IASB’s exposure draft International Tax Reform – Pillar Two Model Rules. Comments are welcome by the UKEB until close of business on 3 March 2023. Sustainability Momentum builds for corporate ESG disclosure and assurance, yet reporting inconsistencies linger. The largest global companies continue to show momentum on corporate reporting and related assurance involving environmental, social and governance (ESG) issues, according to a new report from the International Federation of Accountants (IFAC) and AICPA & CIMA. Significant hurdles remain, however, when it comes to providing consistent, comparable and high-quality sustainability information for investors and lenders. CDP (Carbon Disclosure Project) Ireland has published its Annual Report 2022 "Alignment of Climate, ESG & Financial Disclosures: Global Sustainability Standards and Regulations align to Provide Greater ESG Transparency and Focus". The report is available at https://lnkd.in/eUr4tsrH and provides insights into how Irish companies are addressing ESG topics.  CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. In Accountancy Europe’s latest article from their ‘Insights from SME accountants’ series, Anton Schmidl and Thomas Wallner from Crowe SOT in Austria discuss how they support SMEs with their sustainable transition, including what auditors and accountants can so to help SMEs. Anti-Money laundering/Sanctions The Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, held its plenary meeting on 22/24 February and has now published the outcomes which can be accessed on its website here. These include suspension of Russia's membership of FATF, strategic initiatives on beneficial ownership and dealing with High-risk and other monitored jurisdictions. The European Commission welcomes the Council's adoption of a 10th package of sanctions against Russia and those that support it in its illegal aggression against Ukraine. 24 February marks one year since Russia's full-scale invasion of Ukraine and 9 years since the beginning of Russia's illegal invasion and occupation of Ukrainian territory. This package is turning up the pressure in response to Putin's brutal war, including viciously targeting civilians and critical infrastructure. Other Areas of Interest Decision Support Service It has recently been confirmed that a full commencement of the Assisted Decision-Making (Capacity) Act 2015 will take place on 26 April 2023. The full operationalisation of the Decision Support Service  will then take place when people can interact with the new service. The DSS teams are available to answer any queries in advance of its commencement on 01 2119750 or queries@decisionsupportservice.ie. NI Charity Consultation The Charity Commission for Northern Ireland is developing a new strategic plan alongside a new engagement strategy, both of which are being undertaken following the Independent Review of Charity Regulation commissioned by the Minister for Communities in January 2021. The European Commission published on 15 February a Handbook of good practices in the fight against corruption. The goal of this handbook is to map a variety of anti-corruption practices in EU Member States (MS) that have proved to be useful in solving problems related to corruption, and which can inspire similar initiatives elsewhere. For this purpose, one good anti-corruption practice either established or innovative, with positive impact aspirations in each EU Member State was selected, and clustered into eight types of anti-corruption approaches. Readers may recall our news piece on the publication by the Law Reform Commission of a  consultation paper on liability of clubs, societies and other unincorporated associations. As the consultation paper has generated considerable interest, and to facilitate as many consultees as possible making submissions in response to the questions posed in the consultation paper, the Commission has decided to extend the submission deadline from March 2023 to 15 May 2023. Accountancy Europe has released a factsheet highlighting the main provisions in the OECD Pillar Two GloBE (Global Anti-Base Erosion Rules) proposals. For further technical information and updates please visit the Technical Hub on the Institute website.  

Regulatory Fee Invoices  The Regulatory fee invoices for 2023 are available online at the Myaccount portal of the website to view, print and pay.  Remittance should be made by 31 March 2023.  If you prefer a copy invoice to be emailed, please email Sandra.smiley@charteredaccountants.ie quoting your individual/firm ID.   Need assistance?   Please email Sandra.smiley@charteredaccountants.ie with your name and member/firm ID along with the query or changes required.   We will issue a revised invoice if this is appropriate. 

On 23 February 2023 the Council of the European adopted its tenth package of sanctions against Russia. You can read more details on the tenth package on the European Commission website here a press release on the tenth package here and  Questions and Answers: tenth package of restrictive measures against Russia here.

Please join us in Chartered Accountants House on 29 March for some free, in-person events to mark the Periodic Review of FRS 102, FRS 105 and other UK and Irish accounting standards. In December of last year, the FRC released  FRED 82 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs. This Financial Reporting Exposure Draft (FRED) forms part of the periodic review of the standards which happens approximately every five years. The FRED is now open to consultation and comments are requested by the FRC by 30 April 2023. We are delighted to be welcoming Jenny Carter and Stephen Maloney from the FRC to Dublin for two events to help inform members on the proposed changes. From 12:30 to 13:30 they will be giving a summary of the key changes proposed to the standards in their Summary presentation    If you would like to hear more about the proposed changes, including changes to lease accounting and revenue recognition, they will also be holding some Roundtables from 14:00 to 16:15 Members are invited to attend the presentation and roundtables. If you want to register for these you can do so using the above links.

Welcome to this week’s Technical Roundup.  In developments this week, the Financial Reporting Council (FRC) has published a myth buster to dispel common misconceptions about Corporate Governance and Stewardship; the National Crime Agency (NCA) in the UK has published its first SARs (Suspicious Activity Reports) Booklet of 2023 which showcases further positive feedback from law enforcement agencies and includes a number of case studies highlighting excellent outcomes derived from SARs. Read more on these and other developments that may be of interest to members below. FRS 102 Periodic Review- Meet the FRC Please join us in Chartered Accountants House on 29 March for some free, in-person events to mark the Periodic Review of FRS 102, FRS 105 and other UK and Irish accounting standards. In December 2022, the FRC Published FRED 82, which contains the proposed amendments to UK and Irish accounting standards. These include some significant changes in the areas of Revenue and Leasing. These events will help attendees understand the proposed changes, with presentations from the FRC and include a summary presentation and roundtable sessions. Financial Reporting The European Financial Reporting Advisory Group’s (EFRAG) draft comment letter in response to the IASB’s Exposure Draft 2023/1 International Tax Reform—Pillar Two Model Rules (Proposed Amendments to IAS 12) remains open for comment until 27 February 2023. Sustainability The International Sustainability Standards Board (ISSB) has issued its February 2023 update and podcast. The meeting, amongst other matters, focused on redeliberating the Exposure Drafts IFRS S1 General Sustainability-related Disclosures (draft S1) and IFRS S2 Climate-related Disclosures (draft S2) and to decide whether to begin the balloting process for IFRS S1 and IFRS S2. The ISSB discussed the sources of guidance an entity would use to identify sustainability-related risks and opportunities, and related disclosures and tentatively decided that the effective date of IFRS S1 and IFRS S2 would be effective for annual reporting periods beginning on or after 1 January 2024, and that early adoption would be possible. The ISSB will now commence the balloting process and expects to issue the Standards towards the end of the second quarter of 2023. Anti-Money laundering/Sanctions The Temporary Protection Directive (Council Directive 2001/55/EC) was activated for the first time by the E.U Council on 4 March 2022. Under it, the Irish Dept. of Justice began granting temporary protection to persons fleeing the war in Ukraine on 9 March 2022. To date some 75,000 people have been given temporary protection in Ireland and the Dept. recently announced that it was extending the temporary protection for another 12 months to March 2024. You can read more about this extension of temporary protection on the Dept of Justice’s website. The National Crime Agency (NCA) in the UK has published its first SARs Reporter Booklet of 2023. The NCA writes that the booklet showcases further positive feedback from law enforcement Agencies and includes a number of case studies highlighting excellent outcomes derived from SARs. You can access the SARs Reporter Booklet here. A revised and updated 'Guidance on Submitting Better Quality SARs' from the UKFIU has been published and is available on the National Crime Agency (NCA) website. It aims to provide all reporters with guidance on how to submit better quality SARs to the NCA and the booklet should be read in conjunction with guidance found on the NCA website https://www.nationalcrimeagency.gov.uk/. Governance and stewardship The Financial Reporting Council (FRC) has published a mythbuster to dispel common misconceptions about Corporate Governance and Stewardship. The document addresses several frequently asked questions, such as:  What is corporate governance? What do we mean by stewardship? Does the Corporate Governance code give the FRC powers to enforce against Directors? Protected Disclosures amendment legislation Readers may recall that the Protected Disclosures (Amendment) Act 2022 was signed into law in July 2022 and commenced on 1 January 2023.The  Dept of Public Expenditure (DPER ) has a useful webpage with information on the legislation. The DPER protected disclosures webpage has recently been updated by the addition of a further booklet (to the two already there) on “Protected Disclosures Act Key messages for workers”. Other Areas of Interest Readers may be interested in the “Dear CEO letter “issued recently by the Irish Central Bank (CBI). It sets out some detail of CBI’s regulatory and supervisory priorities for 2023 including authorisation processes, Individual Accountability Framework and supervising firms’ compliance with Anti Money Laundering/Combating the Financing of Terrorism obligations and administering and enforcing financial sanctions. For further technical information and updates please visit the Technical Hub on the Institute website.    

Welcome to this week’s Technical Roundup.  In developments this week, following public consultation, IAASA has issued a revised version of ISA (Ireland) 600 Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) and conforming amendments; the Financial Reporting Council has announced an increase in the number of signatories to the UK Stewardship Code following the publication of its updated list. Read more on these and other developments that may be of interest to members below. Financial Reporting The European Financial Reporting Advisory Group (EFRAG) has released a podcast on its recent discussion paper Accounting for variable consideration – from a purchaser’s perspective. EFRAG has also released a summary report on its recent conference entitled “Where is Corporate Reporting heading?” Auditing IAASA issues a revised version of ISA (Ireland) 600 Following public consultation, IAASA has issued a revised version of ISA (Ireland) 600 Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) and conforming amendments. https://iaasa.ie/iaasa-issues-a-revised-version-of-isa-ireland-600/ Sustainability The Financial Conduct Authority in the UK has recently published a discussion paper on finance for positive sustainable change: governance, incentives and competence in regulated firms. The paper does not make any concrete proposals in terms of new regulatory rules, but it seeks views on how firms should develop their arrangements for governance, incentives and competence in sustainability. The FCA has requested responses to the paper by 10 May 2023. The Department of Enterprise, Trade and Employment is holding a series of free events for businesses which will highlight the opportunities and challenges presented by digital transformation and decarbonisation. The first event will be hosted in the North-West on Friday 3rd March and is open for businesses based in Donegal, Leitrim and Sligo. You can read more and register here. Small businesses and entrepreneurs will have the opportunity to sample hundreds of events helping them to start or grow their business as part of this year’s Local Enterprise Week which takes place from March 6th to 10th. Click here to read more about it and here for more details of the events  including spotlight events for example one on Green, Sustainability & Competitiveness on Thursday 9th March from 2.30pm to 3.30pm. Insolvency The Institute recently hosted a webinar on Options for directors in financial difficulty. It outlined directors’ duties and obligations when a business is in financial difficulty, and possible consequences for directors for not adhering to those duties and obligations. There was also discussion on the recent insolvency related changes to Companies Act 2014 on the expansion of directors’ duties and a Q&A session. The recording can be accessed here. Sanctions/cybercrime The UK government recently sanctioned seven people said to be part of a Russia-based cybercrime gang under the UK’s thematic cyber sanctions regime pursuant to The Cyber (Sanctions) (EU Exit) Regulations 2020. In conjunction OFSI also published Guidance on Ransomware and Financial Sanctions and you can read the UK Government press release here . The European Union this week announced that it is considering its 10th package of sanctions against Russia. Click here to read the press release on the proposed 10th package. They propose to further restrict the export of dual use and advanced tech goods and to add third country entities to the Russia dual use sanctions. They will also look at setting up an overview of all frozen assets of the Russian central bank held in the EU and will look to tackle circumvention of sanctions. We will bring further news of the sanctions when available. The European Union Agency for Cybersecurity (ENISA) and CERT-EU, which is the Computer Emergency Response Team of all the EU institutions, bodies and agencies (EUIBAs), have issued a joint publication to alert on sustained activity by particular threat actors which they say pose a significant and ongoing threat to the European Union. Click here to go to the ENISA webpage where you can access a copy of the publication and the recommendations in it. Other Areas of Interest The FRC has announced an increase in the number of signatories to the UK Stewardship Code following the publication of its updated list. The list now includes successful applicants who submitted their reports at the end of October 2022. The regulator received 105 applications, of which 88 were successful, taking the total number of signatories to 254, up from 235 in September last year. This includes 179 asset managers, 58 asset owners and 17 service providers. The additional signatories bring the total assets under management of the list to £46.4tn, up from £40.7tn. The European Central Bank recently issued its ECB February 2023 Supervision newsletter where there a number of topics readers may find of interest including a piece from the Deputy Governor of the Central Bank of Ireland on whether banks are overregulated, an article on crypto-assets: a new standard for banks and an article on banks’ digital transformation. Section 225 of the Companies Act 2014 introduced a requirement for a directors’ compliance statement (DCS) into Irish law. Now that the DCS has been operational for several years, the Company Law Review Group (CLRG) is reviewing it to determine its effectiveness in achieving compliance and its usability and, if appropriate, to make recommendations as to how these might be enhanced in the interest of good corporate governance. Readers may know that the CLRG is a statutory advisory expert body charged with advising the Minister for Enterprise, Trade and Employment on the review and development of company law in Ireland. The CLRG has issued two surveys, a directors’ survey and a practitioners’ survey, to get feedback from directors of affected companies and practitioners (auditors, financial directors, solicitors, and so on) who are involved in the preparation of the annual DCS. Please see here for more information from DETE on the review . Please access the directors’ survey here. Please access the practitioners’ survey here. The closing date is 28 February 2023. DETE's February 2023 Enterprise newsletter is now available. It contains information on the survey referred to in the preceding paragraph and a number of consultations which DETE is currently involved in including the consultation on which we brought you details in the last few weeks seeking the views of interested parties on the member state options in the Corporate Sustainability Reporting Directive. As a reminder of the details you can click here for a recent Institute news item with some more information on the Directive. The Irish Minister for Justice this week obtained approval from Government to close the Immigrant Investor Programme (IIP) to further applications from close of business on 15 February 2023. He said that all programmes are kept under review and the Government has also taken on board a number of reports and findings from international bodies such as the EU Commission, Council of Europe and OECD on similar investment programmes. You can read more in the press release from the Dept of Justice website. For further technical information and updates please visit the Technical Hub on the Institute website.  

Welcome to this week’s Technical Roundup. In developments this week, as part of its ongoing engagement activities in relation to the periodic review of FRS 102 and other FRSs, the Financial Reporting Council hosted a webinar on 19 January which gave an overview of the proposals and provided further context in relation to the decisions made; the Chairperson of the European Banking Authority recently gave a speech on Financing transition to sustainability? What is the role of banking regulation? He said that the financial sector has an important role to play, both in terms of financing the transition to sustainability and for managing financial risks stemming from ESG factors. Read more on these and other developments that may be of interest to members below. Financial Reporting IAASA has published a compendium of financial reporting decisions. These decisions relate to accounting treatments applied by three companies in their 2021 annual financial reports. This compendium, for the first time, includes decisions covering accounting for climate change and sustainability initiatives. As part of its ongoing engagement activities in relation to the periodic review of FRS 102 and other FRSs, the FRC hosted a webinar on 19 January which gave an overview of the proposals and provided further context in relation to the decisions made. The Financial Reporting Council (FRC) are hosting a webinar on 31 January entitled “ESG – what we’ve achieved so far and what’s next” The IASB have released a webcast which addresses the proposals on financial instruments contained in the recent Exposure Draft on the Third Edition of the IFRS for SMEs Accounting Standard. In its Q4 2022 podcast the IFRS Interpretations Committee discussed a recent submission in relation to IFRS 16 relating to whether a contract including a substitution right contains a lease. The tentative agenda decision in relation to this is open for comment until 6 February 2023. In its sixth episode of “The Fast Future with IFAC” podcast series, some issues relevant to small and medium practitioners are discussed, including cybersecurity, cloud computing, client relationship-building, attracting and retaining talent and firm innovation. Auditing The IAASB has opened its public consultation for a group audit-specific section of the proposed auditing standard for less complex entities. This is open for public comment until 2 May. Sustainability The Chairperson of the European Banking Authority recently gave a speech on Financing transition to sustainability? What is the role of banking regulation? He said that the financial sector has an important role to play, both in terms of financing the transition to sustainability and for managing financial risks stemming from ESG factors. There was some discussion on the EBA roadmap which was adopted in December 2022 and that EBA are going to continue working to embed ESG considerations into their risk analysis and stress testing. Professional Accountancy Education Europe (PAEE), which is a collaboration between European accountancy bodies striving to provide a high-quality education framework at international level have issued some Q&As which explain why it is vital to further develop sustainability awareness among accountancy and auditing professionals. The International Sustainability Standards Board (ISSB) have issued their January 2023 update and podcast. This discusses recent developments including the rollout and adoption of Sustainability Standards S1 and S2. Insolvency The Institute is hosting a webinar on Options for directors’ in financial difficulty on Thursday, 9 February 2023. We will outline directors’ duties and obligations when a business is in financial difficulty, and possible consequences for directors for not adhering to those duties and obligations. There will be discussion on the recent insolvency related changes to Companies Act 2014 on the expansion of directors’ duties. Anti-money laundering The Irish Minister for Justice, with the consent of the Minister for Finance recently issued Guidelines under section 37(12) of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended) (Act) giving a bit more detail of  those functions in the State that may be considered to be prominent public functions for the purposes of the Act. This will assist firms to identify domestic Politically Exposed Persons (PEPs) when conducting their AML risk assessment. The UKFIU recently published the 2022 Suspicious Activity Reports (SARs) Annual Report and annexes which features statistics covering the years 2020-21 and 2021-22.SARs are submitted to the NCA by individuals working in regulated sectors such as banking, legal and financial services, where they suspect that transactions are being used to launder money or conceal criminal activity. Other Areas of Interest The Irish Central Bank recently issued a Dear CEO letter concerning its supervisory findings and expectations for payment and electronic money (E-Money) firms. The purpose of the letter is to reaffirm supervisory expectations of CBI with the CBI stating that the supervision of all financial services sectors is risk-based. The letter also sets out a requirement that all payment and e-money firms who are required to safeguard users’ funds obtain a specific audit of their compliance with the safeguarding requirements under EU regulations and the letter sets out what CBI expects the audit opinion to contain. Read the full letter at the link above . Also, in CBI news the Governor recently issued a letter setting out his financial regulation priorities 2023.Among other items it includes continuing progress on actions on the systemic risks generated by non -banks and ensuring that the EU’s Anti Money Laundering Action Plan including the establishment of a single supervisory authority results in  a consistent and robust EU wide framework. The DETE webinar on the Corporate Sustainability Reporting Directive (CSRD)was held on 26 January 2023.The purpose of the webinar was to introduce CSRD and the European Sustainability Reporting Standards arising out of it, to Irish businesses so that they can begin their preparations. DETE reported that next week will see the launch of a public consultation on member state options contained within the CSRD. Further news on the webinar can be found here. For further technical information and updates please visit the Technical Hub on the Institute website.  

Welcome to this week’s Technical Roundup.  In developments this week, the IDA in Ireland has issued its monthly e-zine which includes a report of ‘green talent’ on the rise and seven offshore renewables projects given a boost by the Irish Government; the Financial Reporting Council held a webinar on 19 January setting out the proposals contained in FRED 82 Draft amendments to FRS 102 The Financial reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review. Read more on these and other developments that may be of interest to members below. Financial Reporting The International Sustainability Standards Board (ISSB) are planning to hold a series of webinars on corporate reporting. The series, which commences on 24 January, will offer a deep dive into the ISSB proposed standards and will consist of three parts as follows. Part 1: Better information for better decisions—Introduction to investor-focused sustainability disclosure Part 2: Any size or stage—Getting started on climate disclosure Part 3: Connectivity and controls—the path to investor-grade disclosure The FRC held a webinar on 19 January setting out the proposals contained in FRED 82 Draft amendments to FRS 102 The Financial reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review. Auditing A new publication from Accountancy Europe builds on the factsheet published last year and offers constructive recommendations based on the discussions with their members’ audit experts as well as external stakeholders involved in developing AQI initiatives in their respective jurisdictions. Sustainability The IDA in Ireland has issued its monthly e-zine which you can click here to read. It includes a report of ‘green talent’ on the rise and seven offshore renewables projects given a boost by the Irish Government. Insolvency In December 2022, the Bankruptcy Master for Northern Ireland advised that the restriction on filing new creditors' winding up petitions is likely to be lifted in the new term. The court has advised that further information will be issued in advance of the new guidance. The court noted that lifting the restrictions may bring about some logistical challenges which is further hampered by the absence of the new proposed Insolvency (Amendment) Rules (Northern Ireland) 2022 and has encouraged a collaborative approach between all practitioners and the court. The Institute is hosting a webinar on Options for directors’ in financial difficulty on Thursday, 9 February 2023. We will outline directors’ duties and obligations when a business is in financial difficulty, and possible consequences for directors for not adhering to those duties and obligations. There will be discussion on the recent insolvency related changes to Companies Act 2014 on the expansion of directors’ duties. Other Areas of Interest The Irish Dept of Enterprise Trade and Employment (DETE) recently published its January 2023 Enterprise newsletter. It includes information on topics such as the webinar DETE are hosting on Thursday 26 January 2022 between 10am - 12pm to explain the new Corporate Sustainability Reporting Directive and accompanying standards in more detail. It also includes information on tariff suspension/quota schemes with the deadline for applications at 5.30pm on Tuesday, 31 January 2023. It also gives information on changes to the employment permit system to address skills shortages in Ireland’s Dairy, Transport and Home Care sectors. DETE has advertised that there will be presentations from the officials heading up the transposition of the directive within the Department of Enterprise, Trade & Employment, the European Financial Reporting Advisory Group (EFRAG) and the EU Commission on the day of the webinar. The Irish government has recently published its legislation programme for Spring 2023. Click here for the press release and to access the spring legislative programme. Some particular items of interest are as follows: In the programme pre legislative scrutiny has taken place on the Charities (Amendment) Bill and it is now on the priority publication list. There is a heads in preparation of an Equality Acts (Amendment) Bill 2023 stated to make provision for proposed amendments to the equality legislation arising from the review of the Equality Acts. Readers may recall previous government agenda where a limited partnership Bill was proposed to modernise the Limited Partnership Act 1907.In the spring 2023 programme there is a heads in preparation of a Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill 2023. This is stated to be to reform the Limited Partnerships Act 1907 and the Registration of Business Names Act 1963, strengthening Ireland’s regulatory framework and responding to concerns raised in relation to the transparency of limited partnerships. The Co-operative Societies bill is on the agenda as heads in preparation. Readers may recall that earlier this year, the Institute, as part of CCAB-I, responded to a public consultation from the Dept of Enterprise, Trade and Employment on new legislation for the co-operative sector and in November 2022 we brought you a news item that the Government had approved the drafting of what is billed as ground-breaking legislation for the sector. Here is the link to page giving details of the General Scheme of the Co-operative Societies Bill 2022. On this quarter’s legislative agenda work is still underway on the Companies (Administrative, Governance & Insolvency Amendment) Bill and it is stated to give effect to outstanding Programme for Government commitments on rights of workers as creditors; trading entities splitting operations; and transactional avoidance. One last bill which might be of interest is the Licencing of Construction Activity Bill which is stated to be to provide for the establishment of a statutory licensing system for construction and related activities. The Dept of Justice has recently published its 2021 Annual Report. They report that publication of  a Justice Climate Policy Statement setting out how the justice sector will reach its ambitious climate and energy efficiency targets, including by the adoption of green public procurement has been carried over to Justice Plan 2022. On the anti-money laundering front it is reported for example that 2021 inspections comprised 106 inspections of High Value Goods Dealers; 138 inspections of Trust or Company Service Providers; 23 inspections of notaries; 8 inspections of gambling providers and 5 inspections of Tax Advisors/ External Accountants. For further technical information and updates please visit the Technical Hub on the Institute website.

In developments this week, the International Auditing and Assurance Standards Board (IAASB) has issued a public consultation for its 2024-2027 proposed strategy and work plan; the Department of Enterprise Trade and Employment has announced that it will hold a webinar on 26 January 2023 (10am-12pm) to inform stakeholders of the new requirements and standards in the Corporate Sustainability Reporting Directive and accompanying standards. Read more on these and other developments that may be of interest to members below. Financial Reporting The FRC are holding a webinar on 19 January on its recently released Exposure Draft “FRED 82”, which sets out the FRC’s Draft amendments to FRS 102 proposed as part of the periodic review of the standard. In its recently released Exposure Draft, the IASB has proposed a temporary exception in relation to accounting for deferred tax arising from the implementation of the OECD Pillar Two model rules. Comments are requested by the IASB by 10 March 2023. The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment (DECA) on Lease Liability in a Sale and Leaseback —Amendments to IFRS 16 (the Amendments) issued by the International Accounting Standards Board (IASB) in September 2022. These amendments add requirements explaining how a seller-lessee subsequently accounts for sale and leaseback transactions with variable lease payments that do not depend on an index or rate. Auditing The International Auditing and Assurance Standards Board (IAASB) has issued a public consultation for its 2024-2027 proposed strategy and work plan. The strategy seeks to accelerate the actions originally laid out in the 2020-2023 strategy with a focus on standard setting that supports the performance of high-quality audit and assurance engagements. Sustainability In its latest podcast, the International Sustainability Standards Board (ISSB) discuss recent decisions and discussions from the ISSB meeting in December. The Department of Enterprise Trade and Employment (DETE) has announced that it will hold a webinar on 26 January 2023 (10am-12pm) to inform stakeholders of the new requirements and standards in the Corporate Sustainability Reporting Directive and accompanying standards. DETE also says that a public consultation will be launched seeking views to inform Ireland’s transposition of the discretionary options of the Directive into national law. While acknowledging that it is a US report, in the light of ongoing developments in sustainability, readers might be interested in the Climate Action Report released by the Board of Governors of the Federal Reserve System recently. This report reviews the climate action plans of global systemically important banks (“G-SIBs”) and summarizes the progress they are making toward achieving them. Click here to access the website of Board of Governors of the Federal Reserve System and here to access the full paper. An abstract from the report states that despite some progress by large global banks to address climate change considerations, much work lies ahead to properly measure and disclose climate-related risks, and to better align financing activities with their net-zero targets. Insolvency The Institute is hosting a webinar on Options for directors’ in financial difficulty on Thursday, 9 February 2023. We will outline directors’ duties and obligations when a business is in financial difficulty, and possible consequences for directors for not adhering to those duties and obligations. There will be discussion on the recent insolvency related changes to Companies Act 2014 on the expansion of directors’ duties. Under the Joint Insolvency Committee’s (JIC’s) strategic work plan, Statements of Insolvency Practice (SIPs) are subject to periodic review in order to ensure they remain relevant to changing legislation and market conditions. Following consultations with the profession and other stakeholders, including the Insolvency Service, HMRC and major creditor representatives, a revised version of SIP 3.1 – Individual Voluntary Arrangements has now been approved by the JIC and the Recognised Professional Bodies for implementation with effect from 1 March 2023.  The revised SIP 3.1 applies in Northern Ireland, England and Wales. Other Areas of Interest The Competition and Consumer Protection Commission (CCPC) recently published its Mergers & Acquisitions Report 2022 which includes statistics on the number of mergers and acquisitions notified and decided in 2022. There was a 16% decrease in notified mergers from 2021 and one proposed acquisition was prohibited. In the case of the proposed banking transaction Bank of Ireland /KBC, the CCPC imposed a commitment on Bank of Ireland of the provision of one billion euro to non-bank lenders to support competitive developments in the mortgage market. In publishing its banking decisions, the CCPC says that it took the opportunity to raise concerns in relation to the overall competitiveness of the banking sector in Ireland and has continued to engage with the Department of Finance and the Central Bank on these matters. Readers can access a copy of the Mergers & Acquisitions report here. For further technical information and updates please visit the Technical Hub on the Institute website.    

Welcome to this week’s Technical Roundup.  In developments this week, the European Financial Reporting Advisory Group (EFRAG) is seeking comments on its draft endorsement advice on amendments to IAS 1; IAASA has published its key messages for auditors in the area of related parties, the Irish Government in recent weeks launched its Climate Action Plan 2023; the Irish Corporate Enforcement Authority has this week published an Information Note on the topic of Early Warning Tools and Restructuring Frameworks. Read more on these and other developments that may be of interest to members below. Financial Reporting The European Financial Reporting Advisory Group (EFRAG) is seeking comments on its draft endorsement advice on amendments to IAS 1. Comments are requested by 1 March 2023. EFRAG has also issued its December 2022 update. The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment on Lease Liability in a Sale and Leaseback —Amendments to IFRS 16 (the Amendments) issued by the International Accounting Standards Board (IASB) in September 2022. Comments are requested from stakeholders by 5 April 2023. The International Sustainability Standards Board (ISSB) has issued itsDecember 2022 update The International Accounting Standards Board (IASB) has issued its December 2022 IFRS for SMEs Accounting Standard Update. This includes FAQs on the proposed amendments to the IFRS for SMEs Accounting Standard and some new resources to support the ongoing consultation. The IASB has also released its December 2022 podcast and the IFRS Foundation has released its monthly news summary. Auditing IAASA has published its key messages for auditors in the area of related parties, and IAASA’s YouTube channel also now includes a video that shares questions asked by IAASA’s audit inspectors during 2022 in the area of related parties. IAASA’s new video provides information on the revised ISA (Ireland) 315 Identifying and Assessing the Risks of Material Misstatement. ISA 315 is effective for financial periods beginning on or after 15 December 2021. The Irish Government in recent weeks launched its Climate Action Plan 2023. This sets out how Ireland will accelerate the action required to respond to the climate crisis, putting climate solutions at the centre of Ireland’s social and economic development. Some details of the plan are contained in the government press release and it is intended that an Annex to the Climate Action Plan, outlining more detail on the Plan’s actions, will be published early in 2023. The European Commission recently published two draft notices containing FAQs relating to the Taxonomy Climate Delegated Act and the Taxonomy Regulation. The first Draft Commission Notice is regarding the interpretation and implementation of certain legal provisions of the EU Taxonomy Climate Delegated Act establishing technical screening criteria for economic activities that contribute substantially to climate change mitigation or climate change adaptation and do no significant harm to other environmental objective. The second Draft Commission Notice relates to the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of taxonomy-eligible and taxonomy-aligned economic activities and assets (second Commission Notice). Insolvency The Irish Corporate Enforcement Authority has this week published an Information Note on the topic of Early Warning Tools and Restructuring Frameworks. The CEA states that the purpose of the document is to provide assistance to company directors in understanding certain aspects of the European Union (Preventive Restructuring) Regulations 2022. Specifically, the Information Note has been prepared with a view to assisting company directors to understand the importance of maintaining adequate accounting records, what is meant by a company being in financial difficulty, being unable to pay its debts and being insolvent respectively, specific aspects of company directors’ duties where a company is in financial difficulty, and the potential consequences of non-compliance with company directors’ duties. You can read the CEA news item on the Information Note here, the Information Note can be accessed here and a feedback statement from the CEA on the public consultation can also be accessed. Readers’ attention is drawn to a recent high court case from late 2022, in the matter of Spencer Dock Development Company Limited (in liquidation). In the case the High court initially refused to approve payment of fees to a company in which the official liquidator had an interest, but which company was a third party. The court discussed the liquidator as a fiduciary and the role of trust of the liquidator. The court also noted that the main creditor in the liquidation was NAMA which the taxpayer funds and the court referred to its obligation to have regard to the interests of the taxpayer. Subsequently the fee was revised and all payable to the liquidators and the court approved this. Anti-money laundering, economic crime, cyber security The European Banking Authority issued its 9th AML/CFT Newsletter in recent weeks. It contains information which might be of interest. For example, on EuReCA, the European Reporting system for AML/CFT material weaknesses launched in January of last year. Also, information on the publication of final Remote Customer Onboarding Guidelines in November 2022, a consultation on Guidelines to tackle de-risking and the publication of its 2022 Risk Assessment Report. Read the full newsletter at the above link. The National Crime Authority in the UK has in recent weeks issued its December edition of SARs in Action. The publication contains interesting information including case studies on SARs and a listing of red flag indicators for the crime of sexual exploitation. In recent weeks HM Treasury in the UK published its Anti-money laundering and countering the financing of terrorism: Supervision Report 2020-22. The report covers a number of matters which may be of interest including a listing at section 3.53 of the most common AML breaches identified by the accountancy and legal Professional Body supervisors during the reporting periods. These include inadequate documented policies and procedures and inadequate resource allocated to AML compliance. Sanctions Readers’ attention is drawn to some news items which may be of interest on sanctions since our last publication of round up in mid-December 2022. The European Union issued its ninth package of sanctions against Russia on 16 December 2022. It includes the imposition of export controls and restrictions, restrictions in the banking sector, restrictions in the broadcasting sector, restrictions in consulting services, energy and mining sectors, restrictions on EU nationals holding posts on governing bodies of Russian state owned or controlled legal persons entities or bodies located in Russia. It also added to the individuals and entities the assets of which are frozen. Our sanctions webpage has been updated with some links and information on the ninth package of sanctions. In our last round up we reported on the Central Bank’s update of its sanctions webpage with an infographic and financial sanctions FAQs. CBI has now helpfully provided a direct link to the European Union's guidance on guidance on Best Practices referred to in one of the sanctions FAQs. On December 20th we reported on the UK auditing ban which was announced in September 2022 and brought into legislative force on December 16, 2022. We also updated our news item from July 2022 which gave details of the UK ban on providing accounting services to Russia to take account of the audit ban which is now in place. Other areas of interest Readers are reminded of the coming into force of the Protected Disclosures (Amendment) Act 2002 from 1 Jan 2023. During 2022 Round up brought readers several news items on the passing of the Act which was signed into law in 2022 and the announcement of commencement of the Act from 1 Jan 2023. By way of reminder the new legislation will substantially amend the Protected Disclosures Act 2014, expanding the categories of protected person to include protections for volunteers, shareholders, board members and job applicants for the first time. It also expands the wrongs in respect of which a protected disclosure can be made and imposes requirements on organisations to put internal whistleblowing procedures in place. It also provides for a new Office of the Protected Disclosures Commissioner. Access to the Central Bank of Ireland’s (CBI) Beneficial Ownership Register for Certain Finance Vehicles by members of the public has been suspended following a recent judgment by the European Court of Justice in the Luxembourg business registers case. The CBI has updated its guidance and this third version relates to Chapters 3 and 4 regarding access to the register by members of the public. The Charity Commission (England and Wales) has published an updated set of questions as it launches its new Annual Return in response to charity sector and public feedback. The Irish Pensions Authority has in recent weeks published information on the annual compliance statement (ACS) for 2022 that is provided for under the Pensions Act, 1990 as amended .The 2022 ACS must be prepared no later than 31 January 2023. The Authority will carry out sample checks and audits of trustee compliance with the obligation. The annual compliance statement form to be used can be found on the Authority’s webpage at the above link. On 16 December 2022 the Minister for Enterprise Trade & Employment transposed the EU Directive 2019/1152 on Transparent and Predictable Working Conditions by the European Union (Transparent and Predictable Working Conditions) Regulations 2022. Click here for the news item from DETE on the introduction of the regulations which for example introduce a limit to the length of probationary periods at the beginning of a job and anti-abuse legislation for zero-hour contract work. Readers are reminded of the round up article in October 2021 where we reported on the Directive including a DETE public consultation on the Directive. For further technical information and updates please visit the Technical Hub.

In case readers missed our news item in our weekly Round Up last week ,we reported that the Irish Central Bank (CBI ) has  updated its sanctions webpage with an infographic and financial sanctions FAQs . We were locating a link for readers to EU guidance on ownership and control referenced in the FAQs. This is now linked below. The CBI FAQs includes a question on whether sanctions only apply to those on the sanctions lists? In the answer CBI says that where you identify that a sanctioned individual or entity owns or controls the individual/entity with whom you are transacting, you should fully assess the impact of this ownership or control. When conducting this assessment, you should refer to the EU Commission’s guidance on ownership and control. This guidance on ownership/control can be found in EU Best Practices which was updated in 2022. 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. Chartered Accountants Ireland can accept no responsibility for the content on any site that is linked to/from the Institute website. Links are provided in good faith for the potential support of members and students.  

Michael Shovelin is a lecturer, Council member and immediate past chair of the North West Society. He is also an avid reader, so who better to ask for book recommendations!   With Christmas fast approaching you might be looking for a gift for a colleague, client or friend. Here is a list of some of the better books on business matters from the past year. Or you might want to treat yourself. This is the ideal time of year to kick back with a good book! Here aresix recommendations from this year. Enjoy! Chums: How a Tiny Caste of Oxford Tories Took Over Britain – Simon Kuper Born in medieval houses, educated in medieval schools and universities, it comes as no surprise that Gove, Rees-Mogg, Johnson, Truss et al should forge careers in a medieval parliament. All products of the now notorious Politics, Philosophy and Economics (PPE) degree at Oxford, they struggled to conjure up a cause that would create legacies akin to Churchill and Thatcher. With no great causes left (inequality, poverty and crumbling infrastructure not being glamourous enough) they summoned the ghost of Thatcher. They hit on Brexit. Simon Kuper delivers an incisive account on what makes these guys, and it is almost all guys, tick. A must-read for the Brexit-watcher in your house. Two Hundred Years of Muddling Through: The Surprising Story of the British Economy – Duncan Weldon With the new season of Brexit well underway, we have some new characters: dishy Rishi; the prim vicar Jeremy Hunt; and a cameo from the Bree Larson of British politics, Liz Truss. In some 250 pages, you get the equivalent of the Oxford degree in PPE delivered in a clear, concise and engaging manner. This is much more than a political economy primer. The book traces the evolution of Britain’s politics and economy since the Industrial Revolution. It charts the booms and busts and the relentless decline of Great Britain after the war. The post-war years and the transformation of the economy (and politics) during the Thatcher years are particularly well discussed. The Man Who Broke Capitalism – David Gelles ‘Neutron’ Jack Welch hated the nickname. Neutron bombs killed thousands of people while leaving physical infrastructure intact. This engrossing book traces Welch’s journey to the top job at GE and the two decades of meteoric growth in earnings and market capitalisation. From $15bn to $660bn market capitalisation. This was an extraordinary story for a company that had been in existence for almost a century, before he took the reins. The methods are all detailed here. A relentless focus on cost-cutting, offshoring, outsourcing, mega deals, mass firings, earnings manipulation and creative accounting. Hundreds of thousands of jobs destroyed, communities gutted, a toxic culture of ‘rank and yank’ and the hollowing out of once-great American icons. What is most compelling is the creation of a clone army of mini-Jacks who learnt at the knees of the great guru and wreaked havoc across the world. When McKinsey Comes to Town – Walt Bogdanich & Michael Forsythe This is an epic tale of hubris, arrogance, deceit and destruction. Once again, we meet the so-called ‘smartest guys in the room’ with all the answers for everything from regulating healthcare, implementing Trump’s immigration policies, defence contracting to advising foreign governments. They trumpet their mission, values, purpose and ethics. The reality is much different. This is a shocking indictment of yet another so-called ‘professional services firm’. While the concept of conflicts of interest should be easily understood, particularly to those with degrees from the finest Ivy League universities, it is clear that McKinsey operates on both sides of a deal. The Chinese walls are thinner than a Celtic tiger era apartment. Their role in advising big pharma as to how better to market opioids is just one of a litany of standout scandals. And the fees charged are eye watering. Butler to the World: How Britain Became the Servant of Tycoons, Tax Dodgers, Kleptocrats and Criminals – Oliver Bullough Following on from his best-selling Moneyland, Bullough delves deep into the murky and shady world of those who enable, collaborate, lobby and ease the entry of some of the world’s least savoury characters into polite society. Whatever remained of Britain’s shabby and threadbare post-colonial reputation is completely shredded here. Everything’s for sale in the scramble to legitimise the images of some of the most malevolent crooks in the world today. While the usual culprits from the world of law, accounting, estate agents and wealth advisers are here, Bullough identifies many others who are complicit. From art gallery owners to principal’s of select private schools, ‘all the devils are here’. Power Failure: The Rise and Fall of General Electric – William D Cohan Cohan’s epic Money & Power: How Goldman Sachs Came to Rule the World is still the definitive template for how to write a company biography. This will surely replace it. This 816-page epic reads like a fast-paced thriller. For all of the 20th century, no other company was so emblematic of American corporate success as GE, (okay, possibly Ford or IBM). Founded by Thomas Edison, GE expanded its operations modestly from the late nineteenth century. However, the arrival of Jack Welch as CEO in 1980 turbocharged the company’s growth and expansion like one of its famed jet engines. It’s all here, the hubris, arrogance and toxic culture that grew out of Welch’s tenure. The cracks had started appearing well before Immelt’s reign. Its demise is a tragic tale. Michael Shovelin is a Lecturer in Atlantic Technological University and Council member.

Readers may be aware that the Russia (Sanctions) (EU Exit) (Amendment) (No. 17) Regulations 2022 (the No. 17 Regulations ) were recently passed in the UK bringing into effect further prohibitions  from 16 December 2022 including a ban on auditing services which was announced in September 2022. “Auditing services “is defined and means services consisting of examination of the accounting records and other supporting evidence of an organisation for the purpose of expressing an opinion as to (a) whether financial statements of the organisation present fairly its position as at a given date, and (b) the results of its operations for the period ending on that date, in accordance with generally accepted accounting principles. Readers should note that the No. 17 Regulations bring further changes into effect including a prohibition on the provision of trust services and they also contain certain exemptions from the prohibitions contained in the No.17 Regulations (see section 60DA(3) in relation to auditing services) . 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. Chartered Accountants Ireland can accept no responsibility for the content on any site that is linked to/from the Institute website. Links are provided in good faith for the potential support of members and students.  

The Financial Reporting Council (FRC) has reached a significant milestone in the periodic review of its financial reporting standards with the release of FRED 82 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs. This Financial Reporting Exposure Draft (FRED) forms part of the periodic review of the standards which happens approximately every five years. The FRED is now open to consultation and comments are requested by the FRC by 30 April 2023. In March 2021, the FRC commenced the periodic review with a request for views from stakeholders. The Institute's Financial Reporting Technical Committee responded to this request with some recommendations. Some of the key points to note from the FRED are; The draft proposals include significant changes to how leases are accounted for and proposes a model similar to that of IFRS 16 Leases  and will result in many leases which were previously expensed as operating leases now being classified as "right of use assets" within fixed assets. However, given the wide range of users of FRS 102 financial statements, there are simplifications proposed which are aimed at ensuring that these accounting requirements are proportionate and cost effective to apply. There are also some proposed exemptions from the rules for some assets.  The draft proposals include a new model of revenue recognition in FRS 102 and FRS 105. This is based on the principles of IFRS 15 Revenue from Contracts with Customers and the five step model included in this standard. This aims to ensure that there will be more consistency in the reporting of Revenue and that the process for revenue recognition is clearer. The FRC have decided to defer its conclusion as to whether to align FRS 102 with the expected credit loss model of financial asset impairment in IFRS 9 Financial Instruments, but have indicated that they may revisit this when the IASB's IFRS for SMEs Accounting Standard goes through its periodic review process. The proposed effective date for the amendments is accounting periods beginning on or after 1 January 2025, with an option for early adoption. Along with the FRED, the FRC have also released some supporting documents including; FRED 82- at a glance FRED 82- Impact assessment Q&A A podcast providing an overview of the changes

Welcome to this week’s Technical Roundup. In developments this week, the Central Bank of Ireland has recently updated its sanctions webpage with an infographic and financial sanctions FAQs about which you can read more including a question on whether sanctions only apply to those on the sanctions lists; the European Banking Authority (EBA) recently published its roadmap on sustainable finance which outlines its workplan on sustainable finance and Environment, Social and Governance (ESG) risks. Read more on these and other developments that may be of interest to members below. Auditing The Institute has responded to the consultation on ISA(Ireland) 600 Group audits. The FRC has launched its Audit & Assurance Sandbox, a collaborative space for approaching issues facing the audit and assurance industry, to support high quality audit and assurance work. The International Auditing and Assurance Standards Board (IAASB) has published a new fact sheet on the interactions between International Standard on Audit (ISA) 220 (Revised), which addresses quality management at the engagement level, and ISA 600 on group audits. The fact sheet highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1 addressing quality management at the firm level. IFAC have released an implementation tool for auditors on risk of material misstatement.  Financial Reporting The FRC has issued Draft amendments to FRS 102 The Financial reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review. FRED 82 proposes a number of changes resulting from the second periodic review of FRS 102 and other Financial Reporting Standards. The proposals include: a new model of revenue recognition in FRS 102 and FRS 105; a new model of lease accounting in FRS 102; and various other incremental improvements and clarifications. The FRED is accompanied by a consultation stage impact assessment. The FRC’s ‘What makes a Good Annual Report and Accounts’ sets out the attributes for a high-quality Annual Report and Accounts (ARA). IAASA has published its revised policy paper Publication of information regarding IAASA’s financial reporting supervision activities. This paper sets out IAASA’s policies on publication as well as the nature and extent of information to be published relating to the outcomes of its financial reporting supervision activities.  The International Accounting Standards Board (IASB) has released a webcast showing some of the main changes included in the recently released Exposure Draft on the Third edition of the IFRS for SMEs Accounting Standard. The IASB has also shared a presentation on the same topic from the World Standard Setters Conference, which was held in September. The IFRS Interpretations Committee (IFRIC) has released its November 2022 update. In his address to delegates at the 2022 EFRAG Conference entitled “Where is Corporate Reporting Going?”, Andreas Barckow, Chair of the IASB, spoke about the IASB’s relationship with EFRAG over the years as it celebrates its 21st anniversary. The UK Endorsement Board has adopted three narrow-scope amendments on 30 November 2022. These were published by the IASB in 2021 and have an effective date of 1 January 2023. The narrow-scope amendments relate to; Disclosure of Accounting Policies (Amendments to IAS 1 Presentation of Financial Statements and to IFRS Practice Statement 2 Making Materiality Judgements). Definition of Accounting Estimates (Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors). Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes). The UK Endorsement Board has approved and published its Due Process Handbook. The FRC has issued FRED 81 FRS 101 Reduced Disclosure Framework 2022/23 cycle. This proposes no changes to FRS 101 in the annual review. Comments are requested by the FRC up to 28 February 2023. The FRC Lab has released its last quarterly newsletter for 2022. This issue focuses on the year-end and the annual report season, and highlights some of our work that may assist preparers in meeting the challenges ahead. The European Financial Reporting Advisory Group (EFRAG) have issued their November 2022 update. Insolvency Readers may know that for various reasons set out in the Companies Act 2014 (section 842), a court may disqualify a director. The Corporate Enforcement Authority is one entity which can initiate the procedure by way of a notice under S850. Also, the Authority can apply (under S820) for a declaration for restriction of a director.  The Minister of State at the Department of Enterprise, Trade and Employment, has recently issued new regulations effective from 9 December 2022, the Companies Act 2014 (Disqualification and Restriction Undertakings) Regulations 2022 and please click here for a useful summary from the Corporate Enforcement Authority on the purpose of the new regulations. Sustainability The European Banking Authority (EBA) recently published its roadmap on sustainable finance which outlines its workplan on sustainable finance and Environment, Social and Governance (ESG) risks. The EBA says that the roadmap explains its sequenced and comprehensive approach over the next three years to integrate ESG risks considerations in the banking framework and support the EU’s efforts to achieve the transition to a more sustainable economy. Please also click here for further information on the relevant EBA webpage and an interesting infographic on the key objectives of the roadmap. In its Joint Statement on the Corporate Sustainability Due Diligence Directive (CSDDD), Accountancy Europe has expressed its overall support for the CSDDD and have called on the EU co-legislators to strengthen certain provisions in the Directive. The International Sustainability Standards Board (ISSB) made some announcements following its meeting this week. These include an agreement on how to describe sustainability and its relationship to financial value creation, addressing natural ecosystems as it relates to climate, and the decision to consider the work of the Taskforce on Nature-related Financial Disclosures (TNFD) and other existing nature-related standards and disclosures where they relate to the information needs of investors. While initially focused on setting rules on climate-related disclosures such as carbon emissions, the ISSB said that it will create rules relating to natural ecosystems after these are published. Find out more here. Other news Law Reform Commission publishes consultation paper on liability of clubs, societies and other unincorporated associations. Submissions are invited from all interested parties on the Commission's Consultation Paper on Liability of Clubs, Societies and other Unincorporated Associations. The Financial Conduct Authority in the UK has published a document (which is not FCA guidance) containing insights from the 2021 Cyber Coordination groups.(CCGs).   You can read more on the CCG forums on this FCA webpage  and while the matters were discussed at forums in 2021 they may be of interest in highlighting  the cyber risk landscape, as well as emerging cyber risks discussed. The FCA also announced this week that it has established a new advisory committee to the FCA’s Board to work on Environmental, Social and Governance (ESG) issues. Click here to read more details and here for the committee’s terms of reference .  The Pensions Authority has published its Engagement and audit findings report for 2022. The purpose of this report is to share observations on the key findings identified during the Authority’s engagement and audit activity in 2022 which included face to face meetings with a number of larger DC and DB schemes. It is expected that all trustee boards and their advisers will consider these findings and evaluate their own practices to establish if any improvements are required. The report is available here. The Pensions Authority also brings news this week of the European Insurance and Occupational Pensions Authority (EIOPA) conclusion of its fourth European-wide stress test of IORPs (pension schemes). The 2022 exercise assessed the resilience of participating IORPs against a climate change scenario, representing the first climate stress test for IORPs in the European Economic Area. Details of the 2022 report is available here on the EIOPA website. The Irish Central Bank (CBI ) has recently updated its sanctions webpage with an infographic and financial sanctions FAQs about which you can read more here including a question on whether sanctions only apply to those on the sanctions lists? In the answer CBI says that where you identify that a sanctioned individual or entity owns or controls the individual/entity with whom you are transacting, you should fully assess the impact of this ownership or control. When conducting this assessment, you should refer to the EU Commission’s guidance on ownership and control. This guidance on ownership/control can be found in EU Best Practices which was updated in 2022. As previously advised, access to the Central Register of Beneficial Ownership for Companies (RBO) in Ireland was suspended for general access following a recent judgment by the European Court of Justice. The case found that the provision of the directives, whereby information on the beneficial ownership of companies incorporated within the territory of the Member States is accessible in all cases to any member of the general public, was invalid. The RBO has now been updated to allow restricted access to search the register to Designated Persons and Competent Authorities only, with very limited information being available to other parties. Further information and details on how to register as a designated person is available here. The Dept of Enterprise Trade and Employment last week issued its monthly enterprise newsletter. While many of the topics have already been brought to readers  of this bulletin click here to access the newsletter which contains information on topics such as the new entitlement to paid sick leave from 2023 , the Temporary Business Energy Support Scheme and Skills for Better Business - a new resource for SMEs. The Institute’s Professional Standards Dept (PSD) has issued its latest regulatory bulletin which you can access here. Readers attention is drawn in particular to the item on the Register of Overseas Entities (ROEs) in the UK. A critical element of the ROE regime is the requirement to verify, independently, elements such as the exercise of control. PSD warns that firms should carefully consider whether they should provide this verification work. Firms are reminded that the work required for verification under the ROE is not the same as the risk-based approach to client due diligence under the Money Laundering Regulations and PSD reminds firms that they should familiarise themselves with the differences. The bulletin also gives a link to an alert on the subject from the Accountancy AML Supervisors’ Group (AASG)  . For further technical information and updates please visit the Technical Hub on the Institute website. 

The roadmap for the EU Commission’s milestone Corporate Sustainability Reporting Directive is taking shape and now is the time to start preparing for a brave new era in non-financial reporting, writes Conor Holland With the Corporate Sustainability Reporting Directive (CSRD) now approved by the European Council, entities in the EU must begin to invest significant time and resources in preparing for the advent of a new era in non-financial reporting, which places the public disclosure of environmental, social affairs and governance matters (ESG) matters on a par with financial information. Under the CSRD, entities will have to disclose much more sustainability-related information about their business models, strategy and supply chains than they have to date. They will also need to report ESG information in a standardised format that can be assured by an independent third party. For those charged with governance, the CSRD will bring further augmented requirements. Audit committees will need to oversee new reporting processes and monitor the effectiveness of systems and controls setup. They will also have enhanced responsibilities. Along with monitoring an entity’s ESG reporting process, and evaluating the integrity of the sustainability information reported by that entity, audit committees will need to: Monitor the effectiveness of the entity’s internal quality control and risk management systems and internal audit functions; Monitor the assurance of annual and consolidated sustainability reporting; Inform the entity’s administrative or supervisory body of the outcome of the assurance of sustainability reporting; and Review and monitor the independence of the assurance provider. The CSRD stipulates the requirement for limited assurance over the reported information. However, it also includes the option for assurance requirements to evolve to reasonable assurance at a later stage. The EU estimates that 49,000 companies across the EU will fall under the requirements of the new CSRD Directive, compared to the 11,600 companies that currently have reporting obligations. The EU has confirmed that the implementation of the CSRD will take place in three stages: 1 January 2024 for companies already subject to the non-financial reporting directive (reporting in 2025 for the financial year 2024); 1 January 2025 for large companies that are not presently subject to the non-financial reporting directive (reporting in 2026 for the financial year 2025); 1 January 2026 for listed SMEs, small and non-complex credit institutions, and captive insurance undertakings (reporting in 2027 for the financial year 2026). A large undertaking is defined as an entity that exceeds at least two of the following criteria: A net turnover of €40 million A balance sheet total of €20 million 250 employees on average over the financial year The final text of the CSRD has also set timelines for when the Commission should adopt further delegated acts on reporting standards, with 30 June 2023 set as the date by which the Commission should adopt delegated acts specifying the information that undertakings will be required to report. European Financial Reporting Advisory Group In tandem, the European Financial Reporting Advisory Group (EFRAG) is working on a first set of draft sustainability reporting standards (ESRS). These draft standards will be ready for consideration by the Commission once the Parliament and Council have agreed a legislative text. The current draft standards provide an outline as to the depth and breadth of what entities will be required to report. Significantly, the ESRS should be considered as analogous to accountancy standards—with detailed disclosure requirements (qualitative and quantitative), a conceptual framework and associated application guidance. Readers should take note—the ESRS are much more than a handful of metrics supplementary to the financial statements. They represent a step change in what corporate reporting entails, moving non-financial information toward an equilibrium with financial information. Moreover, the reporting boundaries would be based on financial statements but expanded significantly for the upstream and downstream value chain, meaning an entity would need to capture material sustainability matters that are connected to the entity by its direct or indirect business relationships, regardless of its level of control over them. While the standards and associated requirements are now largely finalised, in early November 2022, EFRAG published a revised iteration to the draft ESRS, introducing certain changes to the original draft standards. While the broad requirements and content remain largely the same, some notable changes include: Structure of the reporting areas has been aligned with TCFD (Task Force on Climate-Related Financial Disclosures) and ISSB (International Sustainability Standards Board) standards – specifically, the ESRS will be tailored around “governance”, “strategy”, “management of impacts, risks and opportunities”, and “metrics and targets”. Definition of financial materiality is now more closely aligned to ISSB standards. Impact materiality is more commensurate with the GRI (Global Reporting Initiative) definition of impact materiality. Time horizons are now just a recommendation; entities may deviate and would disclose their entity-specific time horizons used. Incorporation of one governance standard into the cross-cutting standard requirements on the reporting area of governance. Slight reduction in the number of data points required within the disclosure requirements. ESRS and international standards By adopting double materiality principles, the proposed ESRS consider a wider range of stakeholders than IFRS® Sustainability Disclosure Standards or the US Securities and Exchange Commission (SEC) published proposal. Instead, they aim to meet public policy objectives as well as meeting the needs of capital markets. It is the ISSB’s aim to create a global baseline for sustainability reporting standards that allows local standard setters to add additional requirements (building blocks), rather than face a coexistence of multiple separate frameworks. The CSRD requires EFRAG to take account of global standard-setting initiatives to the greatest extent possible. In this regard, EFRAG has published a comparison with the ISSB’s proposals and committed to joining an ISSB working group to drive global alignment. However, in the short term, entities and investors may potentially have to deal with three sets of sustainability reporting standards in setting up their reporting processes, controls, and governance. Key differences The proposed ESRS list detailed disclosure requirements for all ESG topics. The proposed IFRS Sustainability Disclosure Standards would also require disclosure in relation to all relevant ESG topics, but the ISSB has to date only prepared a detailed exposure draft on climate, asking preparers to consider general requirements and other sources of information to report on other sustainability topics. The SEC focused on climate in its recent proposal. The proposed ESRS are more prescriptive, and the number of disclosure requirements significantly exceeds those in the proposed IFRS Sustainability Disclosure Standards. Whereas the proposed IFRS Sustainability Disclosure Standards are intended to focus on the information needs of capital markets, ESRS also aim to address the policy objectives of the EU by addressing wider stakeholder needs. Given the significance of the directive—and the remaining time to get ready for it—entities should now start preparing for its implementation. It is important that entities develop plans to understand the full extent of the CSRD requirements, and the implications for their reporting infrastructure. As such, they should take some immediate steps to prepare, and consider: Performing a gap analysis—i.e. what the entity reports today, contrasted with what will be required under the CSRD. This is a useful exercise to inform entities on where resources should be directed, including how management identify sustainability-related information, and what KPIs they will be required to report on. Undertaking a ‘double materiality’ analysis to identify what topics would be considered material from an impact and financial perspective—as required under the CSRD. Get ‘assurance ready’—entities will need to be comfortable that processes and controls exist to support ESG information, and that the information can ultimately be assured. The Corporate Sustainability Reporting Directive represents a fundamental change in the nature of corporate reporting—the time to act is now and the first deadline is closing in.

Brendan O’Hora reports on the findings of the 2022 All-Member Survey Research is conducted to discover new information or reach a new understanding of something, so the Institute’s biennial membership survey is crucial. These have been two years of significant change, and as a membership organisation, it has never been more important for us to act on the findings in a comprehensive, targeted way for the benefit of 31,000 members globally.  The survey was conducted in May and June with over 1,800 members by independent research agency, Coyne Research. This level of participation helps us to build a very accurate picture of the member experience and is much appreciated. It allows us to make the most of this opportunity to check in with members, and to ascertain how we will respond and act on the findings.  This year, we also conducted qualitative research via eight focus groups. This exercise gave us a deeper understanding of member sentiment and reinforced that we are operating in very unusual times.  The operating environment The pandemic may be in retreat, but its effects persist. An ongoing adjustment to hybrid working, declining levels of resilience after extended periods of pressure, and changing priorities among younger members, many of whom qualified or spent their early years in a virtual environment, have had an impact. Compounding this are growing cost-of-living pressures.  The top challenge emerging from the survey for businesses was, unsurprisingly, the competition for talent, up significantly on 2020. Following this is inflationary pressure and increased labour costs. What is resonating with members  Looking at our membership as a whole, the qualification is very highly regarded and a source of great pride. The letters mean a lot to our members, and that pride also extends to the robustness and quality of the education provided.  In reviewing the findings, Bernie Coyne at Coyne Research noted that members are broadly positive about the way the Institute has responded over the last two years to the pandemic.  She said: “As in previous years, members were invited to rate a range of services, based on their experience and degree of satisfaction, with sentiment remaining consistent. Over seven in 10 members rated the webinars and online CPD options as good, with a 20 percent increase in those who experienced them since 2020. The range of specialist qualifications was also rated highly, as was Accountancy Ireland magazine, the weekly Tax News circular, and the knowledge hubs on the Institute’s website.”  The research also pointed to an increase in the number of members who have communicated with the Institute by phone and email since 2020. Roughly seven in 10 rate their experience in communicating positively. While there was strong uptake of the virtual alternatives on offer during the pandemic, there is confidence in returning to face-to-face events. Indeed, the research points to a desire, particularly among younger members, to engage and learn about how they can make their membership work for them and derive the greatest value from it.  Consistent with many of our peers globally, we have seen drops in key member metrics, such as satisfaction and relevance as well as likelihood to recommend the qualification. While, unsurprising, given these unusual times, it is an important alert for the Institute that is already prompting action.   How we are responding to the findings In a changed external environment, and armed with considerable insights, our challenge now is to reposition how we engage with members, with a particular focus on younger members at the start of their career, to optimise their experience of the profession. We are working closely with the Chartered Accountants Student Society of Ireland (CASSI) and the Young Professionals Committee in so doing.  Our members are some of the strongest advocates for the profession, and, at a time when there is a continuing shortage of qualified accountants, it is incumbent upon us to ensure the membership experience is a positive, rewarding, and relevant one for these most important advocates.  One of the ways we will be doing this in the coming weeks and months will be through a campaign to put the tools into members’ hands to make their membership work for them. It will feature real members speaking about how they’ve made the most of their membership and will be accompanied by an updated member section on the website to help users better access and understand what is available, from membership details to Continuing Professional Development, conferences, social events, and supports. Our focus is on giving more control of their experience to our members, so that this experience can be tailored and made to work for the individual.   In closing, I want to return to a theme I touched on at the outset—resilience in the face of sustained pressure. One-in-two respondents reported that COVID had a negative impact on their mental health, compared to 2020. Younger members were less likely to be aware of the Institute’s member support service CA Support, and we will be working to increase awareness of this important resource.  Brendan O'Hora is Director, Members, at Chartered Accountants Ireland