Welcome to this week’s Technical Roundup.  In developments this week, the Financial Reporting Council has published a revised Audit Enforcement Procedure (“AEP”) and feedback statement. This follows consideration of the responses received to the consultation launched on 22 July 2021 regarding proposed amendments to the AEP; on Friday 10th December, EFRAG along with BusinessEurope and the IASB are holding a joint webinar entitled “Future of IFRS disclosure requirements: What we learnt from the field test with European preparers” Read more on these and other developments that may be of interest to members below. Auditing IAASA has published a thematic paper discussing the use of data analytics in Ireland’s statutory audit market. This paper provides an overview of the areas where auditors perform data analytical audit procedures and supports in place for auditors in using data analysis tools and discusses challenges faced by auditors when using data. The FRC has published a revised Audit Enforcement Procedure (“AEP”) and feedback statement. This follows consideration of the responses received to the consultation launched on 22 July 2021 regarding proposed amendments to the AEP. A link to the revised AEP is available here.  The FRC has announced its areas of supervisory focus for 2022/23, including priority sectors, for corporate reporting reviews and audit quality inspections.  The FRC’s Supervision Corporate Reporting Review team will supplement its routine reviews of corporate reporting with six thematic reviews. These reviews will identify scope for improvement, as well as examples of better practice, in areas of key stakeholder interest. The FRC’s Supervision Audit Quality Review team will pay particular attention in its reviews to areas including climate-related risks, fraud risks, and cash and cash flow statements. The FRC has published a Collection of Perspectives, following the FRC Culture Conference held in June 2021 that brought together a wide range of international experts to explore the important link between culture and high-quality audit.   Financial Reporting The IASB has issued a proposed IFRS Taxonomy Update, 'IFRS Taxonomy 2021 Proposed Update 2 — Technology Update'. The Financial Reporting Council (FRC) has announced its areas of supervisory focus for 2022/23, including priority sectors, for corporate reporting reviews and audit quality inspections. On Friday 10th December, EFRAG along with BusinessEurope and the IASB are holding a joint webinar entitled “Future of IFRS disclosure requirements: What we learnt from the field test with European preparers”. In his address to delegates at the AICPA and CIMA conference on 7th December in Washington, Andreas Barckow, chair of the IASB discussed sustainability, the IASB’s current and future work programme and convergence. The FRC has issued FRED 79- FRS 101 Reduced Disclosure Framework – 2021/22 cycle, which proposes no amendments to FRS 101 as a result of its latest annual review. Comments on FRED 79 are requested by 1 March 2022. Insolvency The Companies (Rescue Process for Small and Mirco Companies) Act 2021, which provides for the Small Company Administrative Rescue Process (SCARP) was commenced on Tuesday, 7 December 2021. The commencement order, associated regulations and prescribed forms will be available on the Department of Enterprise, Trade and Employment’s website in the coming days. Further information about the process can be found on the Department of Enterprise, Trade and Employment’s website. Other Areas of Interest In February 2021, the International Valuation Standards Council (IVSC) published a perspectives paper 'Challenges to Market Value' that looked at the challenges in relation to the availability of market information in a pandemic world. A broad range of feedback was received in relation to the paper that has prompted the IVSC to publish a second paper in the series. The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its latest edition of its Spotlight on Markets Newsletter. The Pensions Regulator recently made a presentation to IAPF Governance Conference on the Authority’s Code of Practice. They talked about pension scheme governance, the Code of Practice and why it is needed and that it sets out the Pension Authority’s expectation of trustees .You can read a copy of the presentation here and click here for the Code of Practice. The Department of the Environment, Climate and Communications recently published Cyber Security Baseline Standards and associated implementation guidelines for use by Public Service Bodies. The main goal of the standards is to improve the resilience and security of information and communications technology infrastructure and systems (ICT) in Public Service Bodies. Follow this link to the publication and read Minister Ossian Smyth’s comments on the publication here . A salutary lesson from the UK shows how organisations must ensure they get the basics of their data security correct. Due to tight timescales and a new IT system in the UK Cabinet Office, a mistake was made which resulted in the disclosure of hundreds of postal addresses online. There was no specific or written process in place at the time to sign off documents and content containing personal data prior to being sent for publication. The error resulted in a fine of £500,000 by the UK Information Commissioner’s Office (ICO) the ICO commenting that the Cabinet Office’s complacency and failure to mitigate the risk of a data breach meant that hundreds of people were potentially exposed to the risk of identity fraud and threats to their personal safety. You can read here what the ICO said and here for details of the monetary penalty notice. The Minister for Enterprise Trade & Employment recently announced that the interim period of the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 is extended to 30 April 2022. The Act makes temporary amendments to the Companies Act 2014 and the Industrial and Provident Societies Act 1893 to address issues arising as a result of Covid-19. It allows companies and industrial and provident societies in Ireland to hold their AGMs and general meetings online, increases the period of an examinership to 150 days and increases the threshold at which a company is deemed unable to pay its debts to €50,000. The Dept of Enterprise Trade & Employment has recently published its December newsletter. Topics covered include the commencement of SCARP legislation, a reminder of the National Minimum Wage increase on 1 January 2022,a masterclass on 14 December next held by Enterprise Ireland (registration required) for those looking to upskill for export growth and who want access to development of  selling skills and a webinar on 11 January 2022 on patenting trends. In its recent article entitled “Sustainability reporting: Why should SMEs care”, Johan Baros, EU Policy Manager at Accountancy Europe discusses the role of the SME and how they should prepare for sustainability reporting. On December 6th, the International Federation of Accountants (IFAC) published its vision for high-quality assurance of sustainability information—calling out best practices identified during its year-long, global engagement campaign related to the State of Play in Sustainability Assurance. This vision addresses the importance of global standards, regulation that supports decision-useful disclosure, and the value of an interconnected approach to sustainability and financial information reporting and assurance. FATF recently held a conference on environmental crime which included as participants heads of international organisations such as the UN’s Office on Drugs and Crime (UNODC) and the UN Environment Programme. FATF President Dr. Marcus Pleyer called for a global push to take the illicit profits out of environmental crimes and participants discussed how to develop partnerships to tackle the dirty money that helps fuel environmental crimes. You can follow the link here to view videos of various speakers. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Welcome to this week’s Technical Roundup.  In developments this week, over the recent months, the Institute of Chartered Accountants in England and Wales published a series of reviews of major standards looking at the differences between International Financial Reporting Standards and International Public Sector Accounting Standards and the suitability of each in public sector financial reporting. The fourth and final part of the series has now been released; EFRAG, Business Europe, and the IASB will host a joint webinar on 10 December 2021 on the IASB’s exposure draft 'Disclosure Requirements in IFRS Standards—A Pilot Approach (Proposed amendments to IFRS 13 and IAS 19)'. Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) has published the exposure draft 'Supplier Finance Arrangements (Proposed amendments to IAS 7 and IFRS 7)' to enhance the transparency of supplier finance arrangements and their effects on a company’s liabilities and cash flows. The deadline for submitting comments is 28 March 2022. The IFRS Foundation has issued a monthly news summary for November 2021. EFRAG has completed its due process regarding amendments to IAS 12 and has submitted its Endorsement Advice Letter to the European Commission, recommending it’s endorsement. The Amendments revise IAS 12 to require entities not to apply the IAS 12 initial recognition exemption to transactions that, on initial recognition, give rise to equal and taxable temporary differences. The objective of the Amendments is to reduce the diversity that currently exists in practice. EFRAG, BusinessEurope, and the IASB will host a joint webinar on 10 December 2021 on the IASB’s exposure draft 'Disclosure Requirements in IFRS Standards—A Pilot Approach (Proposed amendments to IFRS 13 and IAS 19)'. In Accountancy Europe’s recent podcast entitled “Sustainability will never do without Governments”, senior manager Paul Gisby discussed sustainability reporting standards for the public sector and where this might lead to in the future, including the potential role of the accountant. The European Banking Authority (EBA) has published a report summarising the findings arising from the monitoring activities on the IFRS 9 implementation by EU institutions. EBA notes significant efforts in IFRS 9 implementation by EU institutions, but cautions on some of the observed accounting practices, especially in the context of the COVID-19 pandemic. IFAC’s Professional Accountants in Business (PAIB) Advisory Group has compiled insights on how accountants are contributing to value creation and sustainability in their organizations in both the private and public sectors in a new report, The Role of Accountants in Mainstreaming Sustainability. A study published as part of the working paper series of the European Banking Institute (EBI) looks at COVID-19 disclosures in half-year and year-end financial statements 2020 of European banks. ESMA, EBA, IOSCO and IASB communicated in the second quarter of 2020 their expectations on disclosure regarding the pandemic’s impact in order to meet the objective of the IFRS to provide decision-useful information to stakeholders. Over the recent months, the Institute of Chartered Accountants in England and Wales (ICAEW) published a series of reviews of major standards looking at the differences between International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSASB), and the suitability of each in public sector financial reporting. The fourth and final part of the series has now been released. Auditing The FRC has published a Collection of Perspectives, following the FRC Culture Conference held in June 2021 that brought together a wide range of international experts to explore the important link between culture and high-quality audit.     The Collection of Perspectives includes contributions from academics, audit firms, directors, regulators, culture change experts and other parties within the audit ecosystem.   The publication serves to highlight consensus between contributors, as well as thoughts on best practice to encourage learning and continuous improvement in developing a culture to improve audit quality.   The full Collection of Perspectives is available here. A summary from the FRC’s Culture Conference is available here. FRC encouraged by reporting by applicants on Stewardship FRC has published ‘Effective Stewardship Reporting: Examples from 2021 and expectations for 2022’ which analyses reports from the first signatories to the revised Code published in September 2021. There continues to be high quality of disclosures in the areas of governance, resourcing, and the integration of stewardship and ESG factors with investment. However, there is still room for improvement in explaining how they manage stewardship-related conflicts of interest, how managers review and assure their stewardship activities, and how they monitor and hold to account service providers operating on their behalf. Insolvency The Irish network of The International Women’s Insolvency & Restructuring Confederation (IWIRC) is hosting its first webinar ‘A look back on key restructuring and insolvency developments in 2021’ on Thursday, 9 December. Anti-Money laundering, Fraud and Cybercrime The Institute of International Finance and Deloitte have recently published a White Paper which highlights four focus areas where continued reform can build on progress already underway globally to help improve the effectiveness of the anti-financial crime framework: 1. the use of financial intelligence; 2. risk prioritization; 3. technology and innovation; and 4. international cooperation and capacity building. This paper also highlights important instances of ongoing systemic improvements, how similar efforts can be deployed across jurisdictions, and how policymakers could prioritize international cooperation and coherence. The paper is entitled “The effectiveness of financial crime risk management -reform and next steps on a global basis”. Read also Grant Thornton’s recently available report on The Economic Cost of Cybercrime Ireland 2021.  The Financial Action Task Force has recently published its Annual Report 2020-2021   . Read about FATF’s achievements under the first year of its German Presidency including the publication of two reports analysing the opportunities and challenges of new technologies, a report into money laundering from environmental crime, which concluded that most countries are failing to assess this area as part of national or money laundering risk assessments and a report on ethnically or racially motivated terrorist financing. Members may be interested in a webinar FATF is holding on Proliferation Financing Risk Assessment and Mitigation on 16th December. Proliferation Financing is financing for the malicious use of chemical, biological, radiological and nuclear materials and weapons. Other Areas of Interest The Pensions Authority has previously advised that from 1 December 2021, trustees must notify the Authority when they enter an outsourcing arrangement for the provision of the internal audit and risk management key functions. Trustees who have entered these arrangements since 22 April 2021 must also notify the Authority. The Authority has now issued instructions on how to notify  it of the arrangements. The Pensions Authority has also recently issued an information note on various regulations signed by the Minister for Social Protection on 25 November 2021. The regulations make amendments to existing regulations under the Pensions Act 1990, as amended, in relation to disclosure, scheme registration, trustee investment qualifications, funding standard, cross-border requirements, and bulk transfers; and revoke and replace the existing investment-related regulations under that Act. Click here for the link to the website which gives further information and links to the regulations. The Central Bank recently issued its Cross Industry Guidance on Operational Resilience. The pandemic has put firms’ operational resilience to the test and highlighted the importance of being more operationally resilient. The guide applies to regulated financial service providers and communicates how to prepare for, respond to, recover and learn from an operational disruption that affects the delivery of critical or important business services. It is also to communicate the Central Bank’s expectations in this regard. The Central Bank recently published its second financial stability review of 2021 which outlines key risks facing the financial system and the Central Bank’s assessment of the resilience of the economy and financial system to adverse shocks. Findings show that economic recovery has continued over the past six months, but more medium-term vulnerabilities have been building up. You can read full details of the review here  and the Central Bank Governor’s remarks on the publication here. HMRC recently issued its Modern slavery statement. This statement details the work HMRC is currently undertaking to eliminate modern slavery in supply chains and to ensure modern slavery risks are identified and managed. The Government has recently agreed that the Dept. for Public Expenditure and Reform undertakes a review of the statutory framework for ethics in public life before it brings forward proposals for legislative reform in 2022.The Dept. has issued a consultation document entitled “Reform and Consolidation of Ireland’s Statutory Framework for Ethics in Public Life” which gives background to the current framework and a proposed policy approach. The Dept is seeking views on a number of questions in the consultation document .Please follow the link to the consultation and document. Submissions can be made up to 5pm on Thursday 23rd of December 2021. A short informative video is now available to view from the A &L Goodbody Corporate Crime Regulation Summit 2021 .Here Ian Drennan of the ODCE talks to Kenan Furlong of ALG  about the ODCE’s work and the imminent establishment of the Corporate Enforcement  Authority which is expected to be established by year end .Ian Drennan talks about the resourcing increase for the new Authority, new powers (which will come on stream over time ) and the important part that technology plays in their work. The European Data Protection Supervisor recently issued its monthly newsletter .It announces its proposed summer 2022 Data Protection conference, “the future of data protection: effective enforcement in the digital world”, it highlights a report on “Biometric And Behavioural Mass Surveillance In EU Member States”  and it comments on a European Digital Identity Wallet. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Dave Riordan ACA, Recruitment Specialist & Career Coach, Chartered Accountants Ireland Careers Team, writes: Recruitment into practices, large and small, is a challenge in the current climate. We know this. So what can we do to make our recruitment processes easier and more effective? Here are some tips that I deem essential to attracting and onboarding suitable additions to your team: The senior management team should incorporate into their Practice Strategy some core objectives and KPI’s on the firm’s candidate attraction (and retention) approach. This needs to be a permanent fixture in quarterly management meetings for the firm and constantly updated. Conduct one comprehensive, all encompassing, interview that allows you make a quick decision about the candidate – no second interview needed. This way you have a time advantage and first mover advantage versus competing practices. As well as traditional jobs boards, use social media channels to get the word out LinkedIn, Instagram, Facebook, Twitter etc. Align your message across each and post simultaneously to each platform for full reach to your audience on the same day. Develop your Practice Brand as an employer of choice in the practice-sphere. This will mean differentiating your firm to increase attractiveness. Train your own – take the longer term view and hire trainees to grow them in your culture. Hire Part-time/ flexible workers – the world is shifting towards the ‘gig-economy’ mindset, so why not employ FCAs who are seeking part-time roles? This way, you can benefit from the vast experience they can bring to the role, and they benefit too as they can balance their role with wider family needs. Many members are now very focused on work-life balance and, even if they are nearing retirement, they could be in a position to contribute some of their best years to your firm. Many FCA’s with 30 years+ experience would be delighted to contribute a wealth of experience to a role in practice for a few days a week, and it doesn’t necessarily need to be at a senior level. Flexible core hours or work to facilitate school drops and pickups are another obvious element in this. Consider ‘Returners’ (members who have been off work travelling or developing home life for a few years). They may often be a ‘little’ flexible on salary to get a foot back on the ladder that then enables them to restart their career. Returners not only have a wealth of experience to bring to a role, but they also have maturity and life experience that can be hugely beneficial. If it’s hard to find the Audit and Tax people you are seeking, why not start to build a branded presence on LinkedIn. Raise the profile of your firm so that ACA’s are aware of it and how good your practice is to work for from an early stage in their career. This will ensure you tap into a pool of passive candidates and attract interest over a period of time. Offer different elements in your remuneration package: e.g. gym membership, social Fridays each month, pension, commission structure, phone paid etc. Often a well run internal candidate-referral reward scheme can be a highly effective way of incentivising current employees to bring in ACA’s that they feel would be a fit for your firm. Done well, this can extend your reach into the market for candidates significantly and also help maintain a consistent culture. Use a highly regarded recruitment agency. Partnering with an agency closely can be very advantageous in the market if you do it right! Some tips on this: Meet the consultant you are working with; Have a regular scheduled update call (e.g. weekly); Accept speculative CVs from the agent; Be flexible on the fee rate. If you get an exceptional candidate they can be worth it and remember it’s contingency based, so no fee is applicable if the process is incomplete; Keep updating the agent about the news in your firm; Offer to work exclusively with the recruitment firm, but ask what steps they will go through to find/headhunt the right candidate for you; Make sure you have created an excellent job spec and offer to assist with the advert text; Recruiter fees can appear high on the face of it, but a good recruiter can allow you get on with the day job of billing clients while they streamline the candidate selection process saving you time and money; Make the partnership a positive one where you share background (but always confidential) information with the recruiter, ensuring you are on the same page & wavelength regarding the person and role; If you trust your recruiter to know what you are looking for and he/she recommends a candidate that does not look like an obvious fit on paper, give the recruiter the benefit and trust their judgement and meet them. I would also be generally open minded on applications. For example, if a candidate is not a right fit for your current active role, consider whether they might be suited to your firm in a different role where they will add value, or perhaps consider them as a short-term contract addition to the team if that could alleviate a work backlog for you. Candidates in the practice market in 2021/22 are savvy and have built shortlists of their preferred employers that match their career pathway. You need to be on their shortlists as an employer of choice. As an interviewer, be clear and well-practiced in the selling points and differentiators of your firm and communicate them warmly during the meeting. Refine your interview techniques and get honest feedback on them to ensure the interview experience for the candidate is a positive professional reflection of the organisation. As an additional guide I can highly recommend a Chartered Accountants publication by Mary E Collins – “Recruiting Talented People”if you are looking for additional detail. I always recommend looking for opportunities each quarter/year to stay close to the Institute, and so partnering with the Careers Team in Chartered Accountants Ireland for your recruitment needs is a good idea to ensure you are attuned to the market, and first in line for ACA candidates who prefer to tentatively explore a practice career move with the confidentiality and assurance of their own Institute. If you would like to speak to the Chartered Accountants Ireland Careers Team, please email us at careers@charteredaccountants.ie.  

Julia Rowan answers your management, leadership, and team development questions. My team works hard and to a high standard, but a couple of people on my team turn every team meeting into a moan about the company. I’m worried that this will affect new team members. The company is a pretty decent employer. What can I do? A. It seems that there are two issues here. First, dealing with the moaning (I will use your word here) and second, making sure that it does not affect new team members. Let’s deal with them separately. When team members moan, our natural tendency can be to jump in, explain, defend, etc. And sometimes that may be the right thing to do, but there is often a “yes but” no-win game being played. There are a couple of things you could do. You could just listen, thank the team member and move on without comment. Or you could listen and ask, “who do you need to talk to about this?” or “who needs to know this?” Or you could have a one-to-one with the moaning team member and try to get under the issue. Only do this if you can be genuinely curious. You could ask questions like “how does that affect how you show up?” and “how can I support you here?” Many people work hard and moan hard, in which case I would praise them for working hard despite their misgivings. If you have a good conversation, you could share your concern that their negativity affects new team members. Loud complainers can create a strong gravitational pull, and you are right to be concerned about their impact on new team members. Make sure to spend plenty of one-to-one time with the new team members, opening up a two-way dialogue, establishing a good feedback relationship, meeting with them regularly, talking about their development, etc. The manager-employee relationship is the most important relationship at work – make sure it’s a good one. I feel my team regressed in the last work from home period. Now we’re working from home again, what can I do to hold the team together? A. Leadership is so important when people are working remotely, as everything is moving online. Five-minute conversations in the canteen often turn into 30-minute Zoom conversations. And you only see your own team and key stakeholders, with none of that easy connection with ‘corridor friends’. Be proactive here. Bring the team together and take some time to review the learning from the last lockdown (what worked well, what worked less well) and invite them to create a set of guidelines (sometimes called a team charter or ground rules) to help them navigate this period. Make this a live document. Check whether it is working and ask, “what else can we do to make this easier for everyone?” You can’t fix this on your own; step back so that the team can lean in. Create a ‘social only’ meeting once a week and get it into people’s diaries. If your team is large, put people into small breakout rooms of two to four people for 15 minutes to give time for connection. If budget permits, send a small gift from time to time. One-to-one check-ins are critical too. Julia Rowan is Principal Consultant at Performance Matters, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie.

A successful COVID-19 vaccine roll-out, a growing economy and shifting priorities – 2021 may not have been the year we expected, but it has definitely delivered change and opportunity. Four members review the challenges they overcame, the surprises they faced and their hopes for the future.  Thady Duggan Senior Manager of CFO & Enterprise Value in Accenture At the beginning of 2021, I was expecting the impact of the pandemic to diminish faster than it did. Given the success of working from home and the fact that we proved, by and large, that many of us can do our job from home, I did not think things would return exactly to the way they were, but I did expect to be in our offices and our client offices more often. The biggest challenge, however, was home schooling. My sister is a teacher and I used to tease her about her holidays – she deserves them! However, professionally, it was continuing to work remotely. We have great collaboration tools and have become smooth at remote workshop facilitation, but there is something to be said for the personal touch. Conversely, because I was working from home, I was able to work on some global projects that I might not otherwise have had the opportunity to do. Under normal circumstances, a portion of my work could be in the UK or, to a lesser degree, Europe, but this year I was able to work with our US team on one of the world’s largest M&A deals. In 2021, I have been pleasantly surprised at how quickly we have galvanised around sustainability and climate. Work was clearly being done over previous years but there seems to be momentum, certainly from individuals and businesses, around these topics that were not there previously. I am also probably a little surprised that the rate of change we saw in the second half of 2020 has not slackened.  After the last year, I take more joy from smaller things and focus on the benefits small actions can have. I have probably done less socially over the past 12 months, but I try to enjoy each activity more. I hope COVID-19 peters out into just being like flu season, and we get back to having face-to-face client engagements again. Stephen Prendiville Head of Sustainability at EY I really didn’t know what to expect of 2021. For a while it was hard to see beyond the next week, not to mind the coming year. But when EY globally stepped out at Davos early in the year and committed to being net-zero in line with science-based targets for 2025, I knew the year was going to be dominated by the pursuit of that commitment. Over the course of 2021, we also became carbon negative, offsetting and removing more carbon than we emit.  On a personal level, it was a year of change. My family and I moved closer to extended family in Donegal and I took on the role of Head of Sustainability. Taking on the role came with a dual purpose: pursuing and supporting our internal sustainability goals at EY, but also structuring our teams to respond to the ever-increasing and challenging focus on the broad concept of sustainability and decarbonisation.  A professional highlight for me this year was representing EY and Irish business at COP26. While the climate diplomacy of COP can be difficult to appreciate, in the wings I had the opportunity to meet people at the cutting edge of technology and business that really do speak to the vastness of our new economic prospects. Prior to COP26, I would have considered that Irish business had a lot of common ground with the Irish Government. What I now see is that both the Irish Government and Irish business have more in common with the climate activist compared to our peers. Ireland can be a great disruptor. When we speak, people listen. We need to use that power not only to help the planet, but also to position ourselves in the new forthcoming global economy. In 2022, we need more dialogue. We need to get deeper on climate action. With the carbon budgets now in place, and the Climate Action Plan 2021 setting a sense of tone of direction, I think 2022 will nurture a great national dialogue and step-change in action for Irish business in particular.  Chalene Gallagher Regulatory Data Senior Associate at the Federal Reserve Bank of New York With everything that happened in the United States last year that served to highlight the inequities faced by minority groups throughout US history, it felt even more important for me to do more in the diversity, equity and inclusion (DE&I) space. The murders of Ahmaud Arbery, George Floyd, Breonna Taylor and too many others felt personal to me. Although I did not grow up in the US, as a black woman, the situations that led to their deaths could just as easily happen to me, a member of my family, or a friend.    The effects of the pandemic also served to compound disparities, as the loss of life and livelihood was felt most by communities of colour and by women who were the predominant employees working in the most impacted industries and who now had to take on more care-giving roles. Although the US and global economies are in recovery mode, it is by no means equitable, creating a K shaped recovery that further serves to highlight the struggles faced by minority groups.    My perspective really changed during the year in that instead of focusing on the feelings of frustration felt in 2020, in 2021, I chose to focus on action. Although I had been balancing my day role as a Regulatory Data Specialist with supporting people and culture-related efforts within the Bank, I personally felt the need to do more. So, I worked with my manager at the start of the year when I became the Vice President of the Women’s Employee Resource Network to intentionally split my time between regulatory reporting analysis and DE&I. Raising awareness, having tough conversations and trying to meet people where they are on their DE&I journey to help move the needle has been a challenge and an emotional investment. But is has been worth it.   Although there is still a lot of work to be done, I feel like we’re moving in the right direction.  For 2022, I hope we can continue to keep these topics at the forefront of the conversations we have in public and behind closed doors so that we can keep the momentum going and make real, tangible and sustainable change.  Sinead Fitzmaurice CEO of TransferMate Global Payments The COVID era has applied pressure to companies’ capital and cash flows, but those who experienced a surge in demand needed immediate information on cash flow and supply chain aspects. As we entered 2021, I expected to see a rise in demand from CFOs for the modernisation of payments infrastructure via digital platforms, and that theme has indeed dominated 2021.   The challenge is always the same: it’s about striking the right balance between personal and professional lives. They are both joined at the hip, like it or not, and both can be stressful in their own way. Striking the right balance is dependent on the talent you surround yourself with, and I am honoured to work with such a talented team at TransferMate who help us achieve our corporate goals daily.  I am always surprised at the resilience of the human spirit and our adaptability in the face of adversity and change. This has been tested to the extreme over the past 20 months in our personal and professional lives. We have a philosophy at TransferMate: “it is our people who make us who we are”. I can honestly say that I am inspired every day by our teams. They consistently rise to any challenge and deliver with utmost professionalism time and time again, regardless of the circumstances. The events of the past 12 months (20 months, actually) have been dominated by COVID-19 and for most of us, our lives have been put ‘on hold’. Yes, we have carried on as best we can within tight constraints, but we still have never really felt completely free. If nothing else, I have come to appreciate the freedoms we had taken for granted – the freedom to interact with people the way I want to, the freedom to travel, etc. In 2022, I hope we emerge from the pandemic for the better; we never forget the sacrifices that people have made as we wrestled with defeating it. I hope we learn not to be complacent about the possibilities of new threats rising and be prepared to defend ourselves when they do. On a professional level, 2022 promises to be a breakout year for my organisation. My goal will be to execute the plan flawlessly and blow through every milestone along that journey to the end of the year for everyone at the company.

Despite persistent and difficult challenges, Dawn McLaughlin is bullish on the north-west’s prospects for 2022 and beyond. This time of year is often a natural time to reflect and contemplate what has happened over the past 12 months. 2021, for all its challenges and difficulties, has been a greater whirlwind than the preceding year in many ways. While still profoundly challenging, businesses have got to grips with issues like the pandemic and the Northern Ireland Protocol, adapting to the challenges before them and seeking new ways of working to meet their customer needs and obligations. I have witnessed the hardship and listened to stories of decimation and uncertainty. But I have also been heartened by how businesses reacted to the crisis, putting their people before themselves. As we look towards 2022 and consider all that it may bring, it is important to look at the challenges we have faced, what we have achieved, how we have progressed, and what still needs to be done. For the north-west, it has been a year of optimism and positivity as well as change and progression. February saw the heads of terms signed off on the £250 million Derry and Strabane City Deal, an investment package that will see 7,000 jobs created over the next decade and an extra £210 million in GVA (gross value added) generated in our regional economy annually. It is difficult to overstate the transformative potential this deal could have for our region – a part of the island that has historically been underfunded, underdeveloped, and under-prioritised. If we get this right, there is an opportunity to carve out the north-west as a leading location in Western Europe for technology, health and life sciences, diagnostics, artificial intelligence, and other emerging industries that will become increasingly important to the global economy over the next decade. It has been a joy to finally see future doctors and consultants training in the city, with the opening of Derry’s new School of Medicine in September. The further expansion of Ulster University’s Magee campus is something that City partners are committed to making a reality, and we will continue to work collaboratively towards this goal. We have welcomed new Executive ministers this year, new MLAs in Foyle, and new party leaders. Ahead of the next Assembly election in Spring 2022, we have been working hard to get our message out there and tell our local candidates precisely what they must support to see our region flourish and prosper. We hope that issues like our regional connectivity and infrastructure, the expansion of our local university, job creation, attracting new investment, and skills development will be front and centre for our elected representatives in May. Specific issues still linger as we look ahead to 2022. Continuing disagreement over the Northern Ireland Protocol does no one any favours, especially businesses. Companies crave certainty, and they thrive when things are stable. While the Protocol is by no means perfect and difficulties are still to be ironed out, these are not insurmountable. Both sides can come to a positive conclusion through committed dialogue, and Northern Ireland can begin to take serious advantage of access to both the UK and EU markets. With growing inflation, a squeezed labour market, and rising costs of materials, services, and utilities, businesses face persisting challenges as we go into the New Year. However, I have spoken regularly about my optimism for the north-west throughout the past 12 months. This optimism has not abated, and I still believe 2022 will be a year of opportunity and prosperity for our region. Dawn McLaughlin FCA is Founder of Dawn McLaughlin & Co. Chartered Accountants  and President of Londonderry Chamber of Commerce.

A recent global compliance study of 890 senior compliance professionals in 25 countries highlights an increasing emphasis on compliance as a value creator. Mairéad Divilly analyses how compliance professionals are factoring in this shift, the benefits to business, and the challenges ahead. Following a year of economic uncertainty arising from the COVID-19 pandemic, businesses worldwide are considering how to extract more value from their operations. The compliance function is no exception. In the past, companies tended to commoditise global compliance, seeing it purely as an overhead. More recently, there is growing evidence that businesses increasingly appreciate both the tangible and intangible values of good global compliance. Analysis of the global compliance survey results suggests that businesses are now much clearer on the benefits and opportunities of good compliance. According to the survey, 58% of compliance professionals now view global compliance as an opportunity to create value rather than an obligation that results in a net cost, as indicated by 37% of respondents. More specifically, 65% of respondents feel that good compliance increases investor confidence, while 64% say it increases client and customer trust and 61% say it helps build a good reputation. The benefits of good global compliance Recognition that good compliance brings returns in the form of a stronger reputation and greater revenue is increasingly evident, particularly when we consider that compliance failures carry significant repercussions. Compliance leaders know the considerable risks of falling short, with 77% saying their business has faced accounting and tax compliance-related issues somewhere in the world during the last five years. These consequences most commonly include reputational damage, internal disciplinary action, and fines. Pivoting from obligation to opportunity Squeezing extra mileage out of good compliance requires businesses to shift their approach from purely tactical to one that sees compliance as a strategic investment. It requires more engagement by top executives to drive real efficiencies, increase opportunities, and become more competitive. It’s an approach not lost on our survey respondents where compliance is seen as a core function of modern businesses, with C-suites devoting more time and attention to proactively managing it. According to the survey, the executive committees and boards engage with compliance at least once a quarter in 75% of businesses, and 39% engage monthly or more. Compliance as a commercial priority featuring more regularly on the calendars of senior leaders is validated by 44% of respondents who say the main reason decision-makers engage is to explore new insights or business opportunities. Only 28% say their senior people primarily focus on compliance to deal with an urgent issue or crisis. So again, we see compliance emerging as a business imperative that drives opportunities and not something seen as low priority or as a reaction to external developments. Reflecting this shift of top management focus is the continued growth of compliance funding, with three in five businesses having increased funding for global compliance over the last year and 68% planning to increase funding in the next five years. Regarding specific funding projects, 73% of respondents predict investment in developing new skills and capacities within teams, while 34% see monitoring external developments in accounting and tax as significant areas for investment. However, the biggest beneficiary of funding will be new technology to achieve compliance goals and drive future improvements, with over 78% of businesses looking to invest in new accounting and tax compliance technology in the next five years and 42% planning a major new investment, according to the survey. This focus on technology is not surprising as 39% of respondents say effective technology is the biggest factor in meeting their compliance goals today. In addition, 45% say new accounting and tax compliance technology will be the most significant factor in the compliance function’s improved performance in five years. Of those who plan to invest in technology, 49% of compliance leaders say artificial intelligence (AI) and machine learning (ML) are their biggest priorities for investment in the next five years. Robotic process automation (RPA) and blockchain are the top priority for 25% and 24%, respectively. Regarding specific compliance function technology-related investments, 38% state that tax compliance will be their priority, while 28% plan to explore the potential of risk management tools. Navigating the challenges ahead Despite this shift to global compliance being viewed as a strategic investment, companies face significant challenges in developing a strategy that takes them to the next level. While 82% of respondents express a high level of confidence in meeting compliance obligations now and in the near future, there is an acknowledgement that the increased complexity of tax rules, new compliance legislation, and the aftermath of COVID-19 will test abilities and compliance functions to the max. According to the survey, some 38% expect the ongoing impacts of the pandemic and increased complexity of compliance to be the two toughest challenges ahead. Meanwhile, 36% expect new legislation in the countries they already operate in to be one of their biggest challenges and 35% cite expansion into new countries. Political disruptions such as those connected to Brexit are also a factor, but are seen as a less likely disruptor with only 23% of respondents citing it as one of their most pressing challenges. Challenges compliance leaders expect to face In contrast, COVID-19 has raised new global challenges with over 75% of compliance leaders saying it has had an impact. The biggest challenge here is remote working, with 52% of respondents citing moving to home environments for work, particularly when in a different country to their employer’s location, has increased compliance needs, adding more pressure on the tax and accounting compliance functions. There is also an acceptance that new legislation and standards are leading to stricter compliance. Over the last few years, compliance reporting obligations not only doubled and sometimes tripled in size, but changes have been complex and fast-moving. As well as seeking the help of experts, the survey highlights that, as discussed above, businesses are investing in technology to leverage compliance functions and meet the need for real-time reporting obligations. While these are welcome improvements, the rise in cybercrime presents an additional risk that needs to be factored in when introducing any technology. Nor are automated and integrated compliance tools risk-free. Machines and algorithms are only as good as the information they are fed. Lack of knowledge remains a significant challenge in meeting compliance obligations, with 42% of respondents citing the need to develop the knowledge and skills of their compliance teams. The combination of skills shortages and the introduction of new technology can often add a new and unexpected layer of risk to the compliance function. Pockets of success lead the way forward The study does, however, highlight pockets of success in navigating the challenges of global compliance. COVID-19, for example, is seen as having a positive impact on individual employees by giving them more flexibility and forcing compliance leaders to become more vigilant. Additionally, while not a new phenomenon, more companies have begun to surpass legislative requirements on tax transparency. Over two-thirds of organisations (70%) voluntarily publish more than the law requires, 45% choose to publish some extra information, while a quarter publishes extensive, detailed information well above what is required by law. Tax transparency is now seen as a microcosm of the broader compliance story. Over one-third (36%) of compliance leaders cite building trust with tax authorities, politicians, and regulators as a key benefit of publishing extra information about the taxes their business pays. Plus, a third say improving their organisation’s public reputation is a crucial benefit of enhanced tax transparency. A further measure we see implemented by businesses that goes above and beyond is the inclusion of compliance strategies in annual reports. This sends a strong message to regulators and clients that can help improve company reputations. Looking ahead, we can expect tax transparency to evolve and measures like publicly available country-by-country reporting to become the norm. While large multinationals are likely to take the lead, tax transparency appears high on the agenda of all businesses irrespective of size and location, according to the survey. The global findings demonstrate that compliance professionals are also aware of the future direction of travel. Compliance-related demands on businesses will increase, leading to the dedication of more resources to meet compliance goals. At the same time, over half of businesses expect meeting compliance requirements to be more challenging in the future. Next steps In terms of the next steps, businesses should review and refresh their organisational setup and compliance functions to adapt to changing circumstances. This will include focusing on regulation as well as management processes to reduce risk and seize opportunities. Anticipating new laws and having the ability to react is vital. In particular, firms must understand their limitations to mitigate the risks linked to compliance. Nurturing agility will allow leaders to anticipate changes so their teams can keep up with global compliance rather than being hindered by it. The return on compliance investment may often be indirect and hard-won, but it should never be underestimated given its importance to growing businesses. Technology can also help companies with global compliance, but the development of skills and knowledge has to be addressed simultaneously. Using internal and external expertise to find the right balance between humans and technology is essential. With over a third of international respondents citing a more complex global compliance landscape as a significant challenge over the next five years, it’s clear that increased complexity will be a feature for years to come. As a result, businesses planning to expand globally will need to be secure in their ability to comply with employment, taxation, payroll, and company legislation in other jurisdictions. As the study demonstrates, when global compliance is done well, it builds investor confidence, increases client and customer trust, and shapes a positive reputation with the outside world. Shifting compliance from an obligation to an opportunity is something all businesses should now explore. Mairéad Divilly is Lead Partner, Outsourcing and Compliance Services, at Mazars Ireland.

Dr Brian Keegan explains why less is often more when it comes to the written word, despite the innate tendency to elaborate rather than edit. The first draft standard from the International Sustainability Standards Board (ISSB) was published last month. Dealing with climate, it runs to a mere 39 pages. But then you have to add on the appendices, which run to well over 500 pages. Even though it is still in draft, that’s a lot of material for people to get their heads around. There will be changes before it is finalised, and I wouldn’t bet that those changes will make it shorter. James Joyce rarely cut sentences when he edited his own work; he just added more words. Many of us subscribe to the Joycean approach. The business and regulatory environment has undoubtedly become more complex. That has a bearing on the volume of information we need to process, but it is not the only reason. Annual reports are growing in length; witness the growth in the size of the published accounts the Leinster Society considers and awards each year. Senior figures in the profession are now predicting the emergence of a more narrative form of assurance on corporate results. More reporting reflects business complexity and stakeholder expectations, of which the new ISSB draft standard is a paradigm example. Much of what we write shows a desire to be seen to have written rather than showing that we want to be read. We may literally be the authors of our own misfortune. Copy and paste functions aid and abet the blossoming of word counts. In this age of email and social media, it is trivial to point out that it is easier to send than to receive; it is certainly quicker. By tolerating this growth, we all do ourselves a disservice. One distinguished senior member and non-executive director put it succinctly to me earlier in the year, as he glumly surveyed yet another multi-volume set of board materials. The bigger the pile of papers, the more it suggested to him that the board didn’t trust management, that management didn’t trust the board, and that everyone assumed that everyone else had too much time on their hands. Even if none of that was true, it would be hard to disprove given the evidence. The tide may be turning, at least in some quarters. Many websites and journals now advertise the length of time it will take to read an article. This tactic is not without its risks either, as it insults fast readers and panics slow ones. Yet, we communicate best when the reader is minded to hear what we have to say. An assurance that the communication won’t take up too much of their time is a good way of getting an audience onside. The French philosopher, Blaise Pascal, is credited with first making the excuse for something he wrote being too long – because he had no time to make it shorter. Time cutting the verbiage is time well spent; the reader is much more likely to hear the message, but it’s not easy. We need to stop hiding behind executive summaries and elevator pitches and instead manage better what we write in the first place. I propose to lead by example. This column is supposed to be 600 words long, but it will be a little shorter this month. I hope the editor is okay with that. I hope you are too. Dr Brian Keegan is Director of Advocacy and Voice at Chartered Accountants Ireland.

In Irish tax developments Revenue is issuing ROS notifications to employers about EWSS payments and PRSI credits made in error between 18 and 28 October, and 10,000 more Form 11s were filed on the November 2021 income tax deadline compared to last year. On the UK front, HMRC has published updated guidance on the tax treatment of COVID-19 supports and tax administration and maintenance day is due to take place next week. While in international news, OECD and Eurasian officials discuss the BEPS Inclusive Framework. Ireland Revenue will issue ROS notifications to employers who claimed Employment Wage Subsidy Scheme (EWSS) payments and PRSI credits in error between 18 and 28 October. Revenue is also in the process of deregistering another cohort of employers not actively claiming EWSS. Revenue told Chartered Accountants Ireland that the number of Form 11 returns filed for 2020 is 560,267 which is 10,000 higher than last year. Revenue is processing requests from 137 tax agents seeking extensions for approximately 3,400 clients under Revenue’s exceptional circumstance facility. UK                 Read HMRC’s updated guidance on the tax treatment of COVID-19 supports. Tax administration and maintenance day is due to take place next week. International Eurasian Countries recently discussed the development and monitoring of international tax standards with the OECD. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount.

Updated 28 February 2022 to include the response from chartered Accountants Ireland.  Corporate reporting by listed companies is the bedrock of capital markets as it gives investors the essential information they need to make sound investment decisions such as information about the financial situation of companies. Moreover, it enables stakeholders to hold companies accountable on, for instance, sustainability issues. The quality and reliability of public reporting by listed companies rely on three main mutually reinforcing pillars: (i) corporate governance in these companies; (ii) statutory audit; and (iii) supervision and enforcement by public authorities. Several recent failures of companies in Europe (e.g. Wirecard, Carillion) suggest that the three pillars that underpin the quality and reliability of corporate reporting by listed companies have not fully played their intended role. European Commission has initiated a broad review on the three core pillars of corporate reporting for large companies. This review will directly feed into an impact assessment that the Commission will prepare in 2022 with a view to: assessing problems with the quality of corporate reporting; and comparing possible options to remedy these problems. Five-part consultation The consultation is divided into five parts seeking views about the overall impact of the existing EU framework for the three pillars of high-quality and reliable corporate reporting: corporate governance, statutory audit and supervision. It also seeks views about the interaction between the three pillars: The first part seeks views about the overall impact of the EU framework on the three pillars of high quality and reliable corporate reporting - corporate governance, statutory audit and supervision. It also seeks views about the interaction between the three pillars. The second part of the questionnaire focuses on the corporate governance pillar, as far as relevant for corporate reporting. It aims to get your feedback in particular on the functioning of company boards, audit committees and your views on how to improve their functioning. The third part focuses on the statutory audit pillar. The first questions in this part aim at getting views on the effectiveness, efficiency and coherence of the EU audit framework. It focuses in particular on the changes brought by the 2014 audit reform. Subsequently, the questions aim to seek views on how to improve the functioning of statutory audit. The fourth part asks questions about the supervision of PIE statutory auditors and audit firms. Finally, the consultation will ask questions about the supervision of corporate reporting and how to improve it This consultation, which runs until 4 February 2022, will directly feed into an impact assessment that the Commission will prepare in 2022 with a view to possibly amend and strengthen the current EU rules. What the Institute is doing A working party from the Institute's committees will be reviewing the consultation, debating the issues and submitting a consultation.  We welcome comments from members interested in the project. Please send any comments to us via email. UPDATE: You can read the Institute's response here.  The three pillars of corporate reporting Corporate governance The consultation questionnaire seeks feedback on the effectiveness, efficiency and coherence of key features of the EU corporate governance framework relevant to corporate reporting. These include board responsibilities for reporting; internal control, fraud prevention obligation to establish an audit committee. Statutory audit The bulk of the consultation document is centred on audit, in particular the impact of the changes brought about by the 2014 EU audit reform package, focused on public interest entities (PIEs). The Commission’s last market monitoring report issued earlier this year had already revealed a number of deficiencies with audit quality (based also on inspection reports) and divergent use of the country options allowed under EU audit rules. General questions are raised on independence, firm rotation, the content of the audit and audit reporting, the provision of non-audit services, transparency rules and the internal governance of firms. Specific questions also ask for feedback on whether joint audits for PIEs should be incentivised or mandated; whether caps on auditor liability should be increased or removed; and whether a passporting system should be established to ease the cross-border provision of audit services.  Supervision Reflecting a number of concerns with the supervision of corporate reporting – the third pillar of the consultation document – feedback is also sought on deficiencies in the EU’s supervisory framework. These address the roles and responsibilities of national authorities, the exchange of information between authorities, the need for greater enforcement powers, as well as the role of the European Securities and Markets Authority. Background High quality and reliable corporate reporting are of key importance for healthy financial markets, business investment and economic growth. The EU corporate reporting framework should ensure that companies publish the right quantity and quality of relevant information allowing investors and other interested stakeholders to assess the company’s performance and governance and to take decisions based on it. High quality reporting is also indispensable for cross-border investments and the development of the capital markets union. In the context of this consultation, corporate reporting comprises the financial statements of companies, their management report that includes the non-financial and corporate governance statements, and sustainability information pursuant to the proposed Corporate Sustainability Reporting Directive. The consultation takes into account the outcomes of the 2018 consultation on the EU framework for public reporting by companies and the 2021 Fitness Check on the EU framework for public reporting by companies. This current consultation focuses on companies listed on EU regulated markets that is a subset of the companies subject to public reporting requirements under EU law. Find out more Commission consultation page and questionnaire ESMA letter to Ms Mairead McGuinness Commissioner in charge of Financial services, financial stability, and Capital Markets Union following Wirecard: Microsoft Word - ESMA32-51-818 Letter to EC on next steps following Wirecard (europa.eu) The European Commission’s second audit market monitoring report which takes stock of changes to the European audit market several years after the implementation of the 2014 audit reform package.

Welcome to this week’s Technical Roundup. In developments this week, the Financial Reporting Council and Financial Conduct Authority have jointly written to CEOs of UK issuers who are required to start producing their 2021 annual financial reports in a structured electronic format; the Committee of European Auditing Oversight Bodies has issued revised “CEAOB guidelines on the auditors’ involvement on financial statements in European Single Electronic Format (ESEF)”. They replace the initial guidelines issued by the CEAOB in 2019. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) have published a staff factsheet on climate related matters to assist preparers of annual reports under FRS 102 The factsheet provides guidance on how climate-related matters may impact a set of financial statements. The first part of this factsheet outlines the ways in which climate related matters may impact a set of financial statements prepared under FRS 102 and the second part summarises current and proposed legislative requirements applicable to companies in the UK in relation to climate and associated matters. The FRC and Financial Conduct Authority (FCA) have jointly written to CEOs of UK issuers who are required to start producing their 2021 annual financial reports in a structured electronic format. The letter reminds such entities of their obligations and of the FRC and FCA’s quality expectations. The European Financial Reporting Advisory Group (EFRAG) have issued a detailed five-month status report outlining the progress to date for the elaboration of sustainability reporting standards following the recommendations of the Project Task Force on European sustainability reporting standards. The International Accounting Standards Board have announced that they expect to publish the Exposure Draft Non-current Liabilities with Covenants on 19 November 2021. The UK Endorsement Board (UKEB) has published its [Draft] Endorsement Criteria Assessment: IFRS 17 Insurance Contracts and welcomes stakeholders’ views on the potential adoption of IFRS 17 for use in the UK. The comment period runs to 3 February 2022.    The UKEB has also launched a survey on subsequent measurement of goodwill and are keen to hear views. You can take part in the survey until 26 November here. The UKEB invites stakeholders to attend a series of upcoming roundtables as it develops its response to the following IASB consultations: Post Implementation Review – IFRS 9 Financial Instruments, Classification & Measurement ED/20212/7 Subsidiaries Without Public Accountability: Disclosures Auditing A new report from the UK Financial Reporting Council (FRC) has set out the key elements required by audit firms to ensure they are delivering high quality audit. The Committee of European Auditing Oversight Bodies (CEAOB) has issued revised “CEAOB guidelines on the auditors’ involvement on financial statements in European Single Electronic Format (ESEF)”. They replace the initial guidelines issued by the CEAOB in 2019.  ESEF is the new electronic reporting format for annual financial reports published by issuers whose securities are admitted to trading on a regulated market in the European Union for financial years beginning on or after 1 January 2021. Other Areas of Interest The Pensions Authority has published FAQs on  investment and borrowing for one-member arrangements under the Pensions Act, 1990, as amended. It has also given notice of forthcoming information on  final Code of Practice and guidance for one-member arrangements (OMAs) during this week, instructions on outsourcing notification, guidance for the public and employers about the minimum standards they should expect from master trust vehicles and a findings report from the Authority’s engagements with master trust, DB and DC schemes during December .We will bring you details when published. The organisation, Irish Rule of Law International (a joint initiative of the Law Societies and Bars of Ireland and  Northern Ireland), is running a commercial law conference on November 25th.Readers may be interested in the paper on “Recent Developments Concerning Auditors Liability” by Gerard Sadlier and spoken to by Michael Coonan of McCann FitzGerald LLP. Tickets cost from €10-€30 euro and the conference can be booked here . The Public Interest Law Alliance together with a number of law firms is promoting Pro Bono week from 22nd to 26th November. Readers may be interested in the session on Implementing the Charities Governance Code on Wednesday, November 24 2021 - 12:00pm to 1:15 pm where legal professionals will discuss the Code, the organisational role played by trustees, the essential elements of good governance, the key legal duties of charity trustees, and provide tips to NGO's for compliance. The Decision Support Service (DSS) has launched a number of consultations recently as part of its preparations for the commencement of the Assisted Decision-Making (Capacity) Act 2015. One of the consultations is on the code of practice for financial professionals and financial service providers. This code will provide guidance for financial professionals and financial service providers on how to engage with and advise customers who are relevant persons under the 2015 Act. It also provides guidance on working with decision supporters and interveners.   You can access the draft code here. Feedback can be given by completing the online questionnaire or by downloading the questionnaire. The DSS asks that the financial professional draft code be read alongside the main  Code of Practice on Supporting Decision-making and Assessing Capacity. The consultation closes at 5pm on Friday 7 January 2022.   The Central Bank Governor recently spoke at a round table event focused on the changing landscape of the financial system, including issues such as the impact of climate change, technology and the need for firms and regulators to be future-ready. He said greenwashing was an area of concern as ‘green’ market practices are currently almost exclusively based on voluntary principles and standards, which leaves a lot of room for different interpretations. The Central Bank Director of Financial Regulation also spoke about climate change in his recent speech delivered at Irish Association of Corporate Treasurers (IACT) Annual Conference. In other Central Bank news, feedback on a consultation paper on engaging with stakeholders  from earlier in the year is now available .Also, the Central Bank recently published its Anti Money laundering bulletin focussing on Fund and Fund Management companies . For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Welcome to this week’s Technical Roundup.  In developments this week, IAASA has published a consultation on its intention to amend the definition of ‘listed entity’ in its Glossary of Terms, which defines the terms used in the Irish auditing and assurance standards; the European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its latest edition of its Spotlight on Markets Newsletter. Read more on these and other developments that may be of interest to members below. Financial Reporting In their October 2021 monthly podcast, Andreas Barckow and Sue Lloyd, Chair and Vice-Chair of the International Accounting Standards Board (IASB) respectively, spoke about the discussions that took place in recent meetings, as well as some highlights from the previous month. The IASB has also released a series of three webcasts explaining the proposals set out in the Exposure Draft Subsidiaries without Public Accountability: Disclosures. The series discusses the objectives & scope of the project, proposed disclosure requirements and the structure and application of the draft standard. Auditing Organisation of the public oversight of the audit profession in 30 European countries.  Enhancing companies’ credibility through audit ensures that stakeholders make informed decisions based on these companies’ financial statements. In parallel, public oversight ensures audit quality. The European Union (EU) statutory audit rules significantly impact how the public oversight of statutory auditors and audit firms is organised. Designated national public oversight bodies have the ultimate responsibility for the oversight of the audit profession. This survey by Accountancy Europe: presents the impact of the 2014 EU audit legislation. The findings show that the national public oversight bodies now carry out many activities previously in the competence of the professional bodies. Nevertheless, professional bodies continue to play an important role in this area working together with public oversight bodies to reinforce audit quality. The survey also provides an overview of how the public oversight is organised in each of the 27 EU Member States and Iceland and Norway as members of the European Economic Area (EEA). Organisation of the public oversight of the audit profession in 30 European countries - Accountancy Europe IAASA has published a consultation on its intention to amend the definition of ‘listed entity’ in its Glossary of Terms, which defines the terms used in the Irish auditing and assurance standards. The consultation is available here Insolvency The Insolvency Technical Committee – Northern Ireland has responded to the Joint Insolvency Committee consultation on changes to Statement of Insolvency Practice 3.1 - Individual Voluntary Arrangements.  SIP 3.1 applies in England and Wales and Northern Ireland. A copy of the consultation response can be found here. Other Areas of Interest The Financial Action Task Force (FATF) is considering proposals for tougher global beneficial ownership rules to stop criminals from hiding their illicit activities and dirty money behind shell companies. Read more here on the proposals and a consultation affecting stakeholders. ICAS are hosting a public webinar on Tuesday 30 November to discuss the results and practical recommendations from a large-scale research project on reporting of Intangibles from the University of Ferrara (Italy). The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its latest edition of its Spotlight on Markets Newsletter. The Central Bank recently published its Strategy for 2022-2024 with  four connected themes for the Bank’s strategic direction :future-focused, open & engaged, transforming and safeguarding. Matters which may be of interest are the aim to strengthen the resilience of the financial system to climate-related risks and its ability to support the transition to a low-carbon economy, promoting  the provision of choice and access to payment instruments in Ireland, including cash and electronic payments and prioritising financial and operational resilience and AML/CFT. You can also watch a video on the strategy here. The Minister for Finance and president of the Eurogroup Paschal Donohoe recently chaired its November meeting .One of the topics was a discussion on the digital euro which he said could offer a European solution in a context of increased demand for alternative means of payments. Read also European central bank information on the digital euro. In the same vein HM Treasury and the Bank of England have this week  announced the next steps on the exploration of a UK Central Bank Digital Currency . The Irish Central Bank Deputy Governor Ed Sibley spoke recently to the National Supervisors’ Forum AGM for credit unions. The theme of the AGM was the Fifth Anti Money Laundering Directive. He spoke about how important they  consider the continued success of the credit union movement, as a necessary component part of the wider financial services system serving the needs of the people of Ireland and the wider Irish economy. You can read his remarks in his speech here. Charity Trustees’ week is taking place from 15-19 November 2021. The event is hosted in partnership by the Charities Regulator, Boardmatch Ireland, Carmichael, The Wheel, Volunteer Ireland, Charities Institute Ireland, Pobal and Dóchas. Minister Paschal Donohoe’s opening statement to the committee on finance public expenditure and reform included comments on the forthcoming Central Bank (Individual Accountability Framework)  Bill and the minister stated that the objective of the legislation is to underpin a thorough transformation of the culture in the financial services industry . In last month’s round up news we brought you details of the government’s proposals to amend freedom of information legislation. Minister McGrath has this week announced the launch of a public consultation as part of the review. The consultation asks participants to briefly identify key issues with the FOI system as they see it, to help the Department in defining the scope of the review. You can take part in the survey here. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Chalene Gallagher ACA is truly a global citizen who now calls New York home. She somewhat stumbled into becoming a Chartered Accountant - her background being in Business and Management. She values the career options her qualification has presented her, as well as the opportunity to give back to her community and causes she values. Can you introduce yourself and tell us where are you from?   My name is Chalene Gallagher and I was born in the United States and raised in Antigua & Barbuda. I now live in New York with my husband, Brian, and our pandemic pup, Daisy. Tell us why you chose to become a Chartered Accountant? It happened unexpectedly, actually. I was living and working in London back in 2008, and decided it was time to make a change. Several people ranging from family members to one of my Masters professors (who happens to be an FCA) had suggested that I pursue professional accountancy, but I didn’t really take it to heart until then. Also I had visited Dublin a few times before then and always had a lovely time. So when I finally decided to dabble in accounting, I thought, "why not go study there for a while?" I applied to the Dublin Institute of Technology (now the Technology University Dublin) for the one year Post Graduate Diploma in Accounting, attended a career fair during the first couple weeks and ended up getting a role in PwC. The rest is history.  How you got to where you are today?  When my training contract ended, I wanted to use the natural opportunity that created to change things up again. Although I was born in the States, up until that point I had never lived here. So when a company called Cross Country Consulting was looking for Chartered Accountants to work in the States, I jumped at the opportunity. Once I got here, I worked as a consultant for a few years in a couple of firms, but really wanted to find a role that balanced accounting with my desire to give back to the community. A friend who worked at the Federal Reserve suggested that it would be  good for my career goals, and I have been working here as a specialist in income statement/balance sheet based regulatory reports ever since.  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? My training as a CA really helped to strengthen my ability to hit the ground running when dealing with new clients and be able to manage multiple projects simultaneously. Also Chartered Accountancy is very much focused around a value system that is critical for working in a mission-driven organisation such as the Federal Reserve. I’ve also been able to bring an international perspective to the table.  As a member living in the USA, can you talk to us about how your membership has been of value to you globally and if there is anything you would like to see your Institute do more of to support members overseas?   In addition to the international perspective being a CA reinforced for me, being able to locally tap into a network of such a diverse group of professionals who span a range of tenures and industries has really contributed to my growth personally and professionally. It has been invaluable to me during my time serving on the members Board and now as the chapter head of the greater New York chapter of Chartered Accountants Worldwide Network USA.  And finally Chalene, if you weren’t an accountant, what do you think you would you be/have been?  Honestly, a few things but most likely an artist of some kind. I’ve always had a creative streak, and I always look for ways to express it.   Chalene Gallagher                      

Alan Fagan has been living and working in the US for almost 10 years and has had some great experiences in that time. He comes from a family of Chartered Accountants and has some good tips for anyone considering a move to the USA, especially about the benefits of getting involved with CAW Network USA. 1. What is your name and where are you from? My name is Alan Fagan and I was born and raised in Dublin. I now live in New York with my wife, Susie and two children Eva and Felix. 2. Can you tell us why you chose to become a Chartered Accountant? You could really say it was like a family business…My Dad, Gerry, and two of my older sisters, Jen and Suzanne, are all Chartered Accountants so it was a proven career path in my household by the time I decided to do it. Accounting and Business were also my two favourite subjects in school and college so it was a natural choice for me. 3. And how did you get to where you are today, and what your qualification brings to your career and society? Can you tell us more about how your compliance work and family life during Covid in New York has been, and how it differs from Ireland? I started at KPMG in Dublin, which really set me up for having a successful career. I worked with and for some amazing people and learned so much in my five years there. It was my training and experience at KPMG that gave me confidence to apply for and ultimately land a role with CrossCountry Consulting in the US. My training at KPMG and studying and obtaining my CAs helped instil a great work ethic in me and also helped develop the skills needed to be successful both professionally and personally. I recognise that I have been extremely lucky with all the opportunities that have been presented to me in my life so try to pay that back to society as much as I can. Although my career in the US started out working in Accounting, when I moved to CrossCountry Consulting’s NY office in 2014, the focus was on more Risk and Compliance work. Although it wasn’t exactly what I had planned to do, I embraced the challenge and dedicated a lot of time to becoming a subject matter expert in areas such as Credit Risk, Anti-Money Laundering, Operational Resiliency and more recently LIBOR. Even more recently, I once again pivoted my career path to focus on Fintech companies and now lead the Fintech practice for CrossCountry in the US. I have been extremely lucky with the opportunities presented to me throughout my career but key to my success has been my ability to change direction and focus on new areas and industries and ultimately make a success of them. In my nine years in the US, I have been lucky enough to work with great colleagues in three great cities (Chicago, Washington DC and now New York) and work with some of the biggest companies in the world.  As I said, I believe the key to my success to date has been embracing new opportunities and challenges, even if they weren’t quite in line with where I saw my career going.  4. How are working and family life different in New York, especially during Covid? The biggest difference between working in the US and Ireland is definitely the culture. In the US, you need to be your own biggest cheerleader and really let people know about the value you are bringing as there are a lot of big personalities in the US. The same is true around networking and building relationships, you have to put yourself out there and really go outside your comfort zone to develop that network. I learned pretty early on that the things that made me successful in Ireland may not be the same things that make me successful in the US so had to really adjust my way of doing things to more align with the US way of working.  Covid was challenging for everyone, but on balance we were very lucky that we did not have too bad an experience. NY in the early days of pandemic were tough but from June 2020 things started to improve and we didn’t really have much setbacks in terms of the city reopening. The hardest part was definitely being away from family and my kids not getting to see their grandparents but we were fortunate enough to be able to go back in June this year and have another trip planned for Christmas.  5. As a member living overseas, can you talk to us about how your membership has been of value to you globally and if there is anything you would like to see your Institute do more of to support members overseas?  Since I moved to the US in 2012, I have been actively engaged with Chartered Accountants Worldwide Network USA (formerly ACAUS), that I am member of as part of my Chartered Accountants Ireland membership. This has been a great network to meet people with a similar background and learn how to be successful in the US, leveraging the CA qualification. I am very passionate about the value of this network and recently joined the Executive board of CAW Network USA as Treasurer. I am looking forward to continuing to engage with CAs moving from Ireland to the US so that they can also benefit from it. My one ask of the Institute is to continue to raise awareness of CAW Network USA to members moving to the US as it can be such a valuable resource for those trying to start careers in a new place.   6. And finally Alan, if you weren’t an accountant, what do you think you would you have been? Probably a lawyer – I was always fascinated by law growing up and liked the idea of working in a courtroom but in the end I found numbers more interesting than text so went with accountancy!     

Welcome to this week’s Technical Roundup.  In developments this week, the FRC has published the annual review of corporate reporting which outlines the top ten areas where improvements are needed, IAASA has published a video briefing for audit committees and the EFRAG has released it’s third of three podcasts on “good practices in reporting the business model, sustainability risks and opportunities”. The Financial Reporting Lab has published a report to help companies prepare for mandatory TCFD reporting. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting, which outlines the FRC’s ‘top ten’ areas where improvements to reporting are required. These include reporting on judgements and estimates, revenue and cash flow statements. https://frc.org.uk/news/october-2021/frc-to-focus-on-climate-related-reporting-as-new-d The IASB has prepared a series of five bitesize webcasts on the Exposure Draft Management Commentary. This has been produced to address frequently asked questions about the International Accounting Standards Board’s proposals for a new framework for preparing management commentary. The European Financial Reporting Advisory Group (EFRAG) released it’s third of three podcasts on “good practices in reporting the business model, sustainability risks and opportunities”. This third and final episode in the series highlights the current and potential role of technology in sustainability reporting. FRC publishes oversight responsibilities and independent supervisor reports The FRC has also published its annual report to the Secretary of State for Business, Energy, and Industrial Strategy (BEIS) on how the FRC has discharged its oversight responsibilities in 2020/21 and its Report of the Independent Supervisor on Auditors General. The Financial Reporting Lab (the Lab) has published a report to help companies prepare for mandatory TCFD reporting.  It includes practical advice and examples that better address aspects of TCFD reporting from those companies already adopting the framework on a voluntary basis. https://frc.org.uk/news/october-2021/preparing-for-mandatory-tcfd-reporting,-including Auditing IAASA have published videos for those who would like to view their recent Audit Committee Briefing. Sustainability 57 organizations have released an open letter for the European Union to act on ESG disclosure standards. They encourage the European Commission to promote a global baseline set of standards through supporting the IFRS Foundation on the launch of the International Sustainability Standards Board (ISSB). The Irish Central Bank Deputy Governor Sharon Donnery was a panellist at the recent awards ceremony for G20 Tech Sprint 2021 on green and sustainable Finance  where the central banks’ mandate and roles in the area was discussed including the dedicated climate change units. Fraud and money laundering The UK Government recently published a fraud sector charter containing an assessment of fraud threats in the accountancy sector.  This voluntary charter sets out actions to tackle fraud in the accountancy sector including improving information regarding fraud and enhancing Companies House data. The UK National Economic Crime Centre has launched a campaign aimed at raising awareness of payment diversion fraud. The aim is to help small and medium sized businesses and home-buyers protect themselves. Click here to read more about the campaign. The European Data Protection Supervisor recently issued its latest newsletter  which contains information on the EDPS views on matters such as  the European Commission’s proposed Anti-Money Laundering legislative package  which it supports but suggests improvements to protect individuals’ personal data.  Other Areas of Interest The Department of Enterprise Trade and Employment has published the revised work safely protocol recently. Entitled the “COVID-19 National Protocol for Employers and Workers” it has been reviewed by employers and employee representative groups following the most recent public health advice received by Government.  On 20 October 2021, a guidance note was published by the Labour Employer Economic Forum, which supports the guidance set out in the Protocol. Following on from its recent Annual Conference 2021 - Opportunities and Aspirations for the Assisted Decision-Making (Capacity) Act 2015, the National Disability Authority has added presentations and other resources to their website. Also, recordings of the conference sessions can be watched via the NDA Youtube channel. The Property Services Regulatory Authority (PSRA) issued its Annual Report which presents an overview of the activities and outputs of the Authority in 2020. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Welcome to this week’s Technical Roundup.  In developments this week, the UK Financial Stability Board has welcomed the publication of the 2021 status report by the industry-led Task Force on Climate-related Financial Disclosures; Public trust and confidence in charities research has recently been published by the Charity Commission for Northern Ireland. According to new research 87% of respondents marked 'doing what they say they will do' as a major factor that influences their trust in a charity. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has published the findings of its review into IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, which has been identified as a recurrent problem area by the FRC.  The International Accounting Standards Board (IASB) is currently consulting on proposals for a new accounting standard that would permit eligible subsidiaries to apply IFRS Standards with reduced disclosure requirements in their financial statements. The comment period is open until 31 January 2022. The IASB recently released a short video which introduces the board’s proposals set out in the exposure draft. The European Financial Reporting Advisory Group (EFRAG) released it’s second of three podcasts on “good practices in reporting the business model, sustainability risks and opportunities”. In this second podcast, Giuseppe Milici, Task Force member and Sustainability Services Senior Manager at Deloitte Italy, provides insights on the good practices identified in the report’s supplement, the selection process set by the Task Force, observed common threads among the identified good practices and the challenges encountered by the Task Force. The UK Endorsement Board secretariat has published its survey on IASB Exposure Draft ED/2021/3 Disclosure Requirements in IFRS Standards – A Pilot Approach (the Disclosure Pilot). The ED proposes replacing today’s mandatory disclosure regime with a series of disclosure objectives, giving companies more freedom to decide what should be disclosed to meet the objectives. Read more here. Q&A We have published a number of Questions & Answers to answer some of the most common questions members and other stakeholders have in relation to audit and assurance engagements financial reporting and insolvency. Other Areas of Interest The Financial Stability Board (FSB) has welcomed the publication of the 2021 status report by the industry-led Task Force on Climate-related Financial Disclosures (TCFD), which reports on the further progress in TCFD-aligned disclosures by firms. The Irish Pensions Authority recently published information on trustees obligations to notify the Authority of outsourcing arrangements. From 1 December 2021, trustees must notify the Authority when they enter an outsourcing arrangement for the provision of the internal audit and risk management key functions. Trustees who have entered these arrangements since 22 April 2021 must also notify the Authority. As part of Charity Trustees’ Week  on 15-19 November 2021 the Irish Charities’ Regulator together with Boardmatch Ireland, Carmichael, The Wheel, Volunteer Ireland, Charities Institute Ireland, Pobal and Dóchas, have put together a timetable of diverse events to suit trustees from every type of charity such as the Charities Governance Code Workshop for Small Non-Complex Charities on 18 November 2021 and the Charities Governance Code Workshop for Registered Charities on the 19 November. Places are limited so register now if interested. Public trust and confidence in charities research published by the Charity Commission for Northern Ireland. According to new research from the Charity Commission for Northern Ireland, 87% of respondents marked 'doing what they say they will do' as a major factor that influences their trust in a charity. Fraud and Money laundering The ICAEW has produced a useful insights article on payment diversion fraud. It outlines what it is and how businesses can avoid it for example by training and vigilance. It also provides advice  on what to do if it happens to your business and a link to the NCA brochure. HMRC has recently updated its guidance “Help and support for money laundering supervision”. There are a series of webinars on its pages on money laundering supervision containing information for all businesses and sectors including Accountancy Service Providers and Trust or company service providers registered with HMRC . For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Our 30,000th member, Richard Akpan, trained with KPMG in Dublin and is now embarking on a move to Edinburgh to take up a new role in a new city. We caught up with him to find out about his preparations and feelings about this adventure. Can you tell us a little about how the circumstances of your move came up? Besides my summer in Berkeley/San Francisco on a J-1 visa back in 2016, I’ve lived in Dublin for as long as I remember. While I do love home, I’ve always been keen to live abroad as a professional. Further afield is a lot more uncertain with Covid-19, but mainland UK offers something different that is still close to home. Myself and my girlfriend (who is also a Chartered Accountant) were between choosing London and Edinburgh to move to. What drew us to Edinburgh was that it was a smaller city where you can walk to everywhere, combined with both of us having family and friends scattered across Edinburgh, Glasgow and Aberdeen, led us to believe that it would be an easier city to settle in. The timing works out nicely with me finishing up with KPMG as a Chartered Accountant and looking towards the next steps of my career. What about the proposition made it a "yes"? There definitely were a number of factors.  I visited Edinburgh a few months ago and instantly fell in love with the city. I had visited when I was a child, but the feasibility of it as a potential place to relocate to was lost on my five year old self. What I like about Edinburgh is that while the Old Town is in the heart of the city centre, it doesn’t feel like a city centre. It has a really homely feel to it. Edinburgh was ranked the second biggest predominantly English speaking financial services centre in Europe in 2020, so there were a lot of suitable roles for both myself and my girlfriend to apply to.   Edinburgh is also a big rugby city – a sport of which I am an avid fan and incredibly average player of. I intend on joining a club when I move over in order to keep fit and get to know new people. A trip to Murrayfield is definitely on the bucket list.   The cost of renting is a lot more reasonable in Edinburgh. The housing market in Dublin is a nightmare, as anyone from my generation will tell you. The current rent I’m paying in Dublin for a one-bedroom in Ranelagh would get me a two-bedroom apartment in Edinburgh’s city centre, so there is a lot more bang for your buck.   The people there are very friendly. I find that the Scottish and the Irish have a very similar sense of humour too. What are you particularly excited about? I’m particularly looking forward to the change of scene. There’s so much that goes on in Edinburgh – such as the Fringe Festival in August and Christmas markets. I certainly envisage myself doing a lot of hosting with friends and family using visiting me as an excuse for a holiday! I am really looking forward to discovering a new city. What are you nervous about? I’m definitely nervous about starting my new role and making friends over there, but definitely in an excited way. It will very much have a "first day of school" feel to it – going from being very much settled in Dublin to a complete change in Edinburgh. I’ll be moving to a new city and a new apartment, starting a new job in a new company and joining a new club. There will be a lot of new firsts and there will be plenty of things to be nervous about along the way but I am looking forward to throwing myself into it. Now that you're ready to go, what have you learned along the way that might have helped you to know in advance? I would definitely make sure that if you’re looking to move abroad, to make sure that you start the job hunting process with a few months to go. A lot of employers may require a notice period that is as long as three months, so that is definitely a timeline to factor in.  A lot of companies are also inundated with applications to roles and can be slow to respond, so make sure to apply to a few roles that you are interested in and allow for a few weeks to progress to the next stage.   Make sure to confirm with your employer whether you are required to also become a member of their local accountancy body. Chartered Accountants Ireland is part of an international network so you should be able to maintain your membership at home as well as being a membership abroad, but it is definitely something to consider.   I remember reading a publication from Barden that was sent out alongside an Accountancy Ireland magazine back in late-2019.  On their moving abroad section, they said  “only apply to a job abroad if you would apply to the same role if you weren’t moving.”  I can’t stress how important that advice has been when job hunting. It meant I spent time reflecting on what direction I want my career to go and applying to suitable roles to get me there.   Make sure that you have the right to work in the country you are hoping to move to.  As Ireland is part of the Common Travel Area agreement with the UK, Irish nationals are automatically entitled with a right to work in the UK. It’s also good to have an idea about the National Insurance number – the UK equivalent of the PPS number. This can take some time to receive but it is good to look into it ahead of moving.   It probably goes without saying but I would heavily recommend spending some time in the city you would like to move to if at all feasible, just to make sure that the city is a good fit for you personally. What will you miss most about home? My family and friends. I’ve made a promise to my mum to visit home every 6-8 weeks! A flight back home is quicker than most people’s morning commutes, so I can at least make it back home on a regular basis and quite easily as well! Richard Akpan was admitted to membership in June 2021, becoming the Institute's 30,000th member.               

The details of the procedure for accountants in exceptional difficulty to make an arrangement with Revenue for the income tax deadline are set out in our Irish tax developments, along with confirmation from Revenue that arrangements for accountants reporting turnover for VAT Form 56A continue to apply. On the UK front, read this week’s updates on HMRC administered COVID-19 supports and we also bring you news of a new economic crime levy. While in international news, with Ireland signing up to the OECD global minimum tax agreement, 136 jurisdictions including all EU Member States and OECD members have agreed the two pillar plan.     Ireland Revenue set out the process for accountants in exceptional difficulty for the upcoming income tax deadline to seek to put an arrangement in place. Long-standing arrangements for accountings to support a client’s VAT Form 56A application continue to be recognised by Revenue. UK           Read this week’s updates on HMRC administered COVID-19 supports. HM Treasury has published more information on a new economic crime levy on professional firms and financial institutions. International The OECD two pillar plan on international tax reform is agreed by 136 jurisdictions, including Ireland. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax Newsletter by updating your preferences in MyAccount. 

Welcome to this week’s Technical Roundup.  In developments this week, the recently published Companies (Corporate Enforcement Authority) Bill 2021 (the Bill) establishes the Office of the Director of Corporate Enforcement (ODCE) as a standalone statutory body with a commission structure, to be called the Corporate Enforcement Authority (CEA); In its third quarterly podcast, the IFRS Interpretations Committee Chair and Vice-Chair of the International Accounting Standards Board Sue Lloyd joined Technical Staff Member Patrina Buchanan to talk about recent activities to support the consistent application of IFRS Standards during the third quarter of 2021 Read more on these and other developments that may be of interest to members below. Auditing The International Auditing and Assurance Standards Board (IAASB) has issued a proposed International Standard on Auditing of Financial Statements of Less Complex Entities. The consultation is open until 31 January 2022. The Institute's Audit and Assurance Technical Committee is considering this proposal in detail. To keep our members informed and updated on this important development we have published a webpage where members can access the consultation papers and submit their comments to us. IAASA have issued a revised version of ISA (Ireland) 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. The main changes to the standard are designed to provide increased clarity about the auditor's obligations to detect material fraud and enhance the requirements for the identification and assessment of the risk of material misstatement due to fraud and the procedures to respond to those risks. Read more here. Financial Reporting In its third quarterly podcast, the IFRS Interpretations Committee Chair and Vice-Chair of the International Accounting Standards Board Sue Lloyd joined Technical Staff Member Patrina Buchanan to talk about recent activities to support the consistent application of IFRS Standards during the third quarter of 2021. Topics discussed in the podcast included; Non-refundable VAT on lease payments Accounting for warrants that are financial liabilities on initial recognition Demand deposits with restrictions on use Cash received via electronic transfer as settlement for a financial asset. The FRC’s Lab published a report that supports companies in the move towards high-quality digital reporting. The Lab report sets out key considerations and tips for companies covering: how to set up the structured reporting process; how to enhance the usability of structured reports; and common tagging issues to avoid. The Financial Reporting Council (FRC) has published the findings of its review into IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, which has been identified as a recurrent problem area by the FRC. In it’s latest podcast, the European Financial Reporting Advisory Group (EFRAG) provided an insight into the European Lab Project Task Force on the reporting of non-financial risks and opportunities and the linkage to the business model (PTF-RNFRO) report : Towards Sustainable Businesses: Good Practices for Business Model, Risk and Opportunities, Reporting in the EU and Supplementary Document: Good Reporting Practices. Other Areas of interest The recently published Companies (Corporate Enforcement Authority) Bill 2021 (the Bill) establishes the Office of the Director of Corporate Enforcement (ODCE) as a standalone statutory body with a commission structure, to be called the Corporate Enforcement Authority (CEA). Listen to the Association of Compliance Officers’ podcast series. Compliance files- Season 2, Episode 1.This week they speak with Ian Drennan, Director of Corporate Enforcement, on the role and powers of his Office, the implications of the Hamilton Report and the Implementation Plan which can be found on the Department of Justice website. One of the strands is the Advisory Council one of the key responsibilities of which will be developing Ireland’s first multi annual strategy for combatting crime and economic corruption. The director also makes reference to the above Bill which he says the legislature hope to have in force by year end, so a recent priority of his office has been work in this area to have the CEA ready to go by January 2022. As part of European Cybersecurity Month ISME are hosting a webinar on cybercrime with Department of Justice and  An Garda Síochána on protecting your business from cybercriminals.    The free webinar is on 28 October, and you can register by clicking the link above. The Department of Enterprise Trade and Employment has issued a Budget day newsletter with a link to the department’s Budget 2022 allocation. The newsletter gives details of some of the business focused measures contained in Budget 2022 such as enhanced tax arrangements for remote working and funding for digital and green funds. The Central Bank’s Director General Derville Rowland spoke recently at  the A&L Goodbody Corporate Crime and Regulation Summit about the evolution of enforcement at the Central Bank. She referred to  areas such as establishing and maintaining the credible threat of enforcement by the Central Bank and also about the proposed Individual Accountability Regime under the General Scheme of the Central Bank (Individual Accountability Framework) Bill 2021 making reference also to the UK experience in relation to this. HMRC has issued its October edition of its  bi-monthly magazine for employers and agents giving them the latest information on topics and issues that may affect them. Also, in the anti-money laundering supervision area, HMRC has recently updated its Guidance on Understanding risks and taking action for Trust or Company Service Providers. Sustainability Sustainable Finance Ireland in conjunction with the UN-convened FC4S, has launched Ireland's Sustainable Finance Roadmap, in collaboration with public and private stakeholders across Ireland including the Department of Finance, Skillnet Ireland, and internationally. Developing sustainable finance talent will be prioritised as a key pillar of the roadmap. In launching the report, the Minister for Finance Paschal Donohoe said the roadmap was a priority Action Measure under the Ireland for Finance Action Plan 2021, demonstrating sustainable finance’s increasing prominence as a priority for Ireland and an essential tool in addressing the climate crisis. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Susan Rossney, Public Policy Officer, writes: It seems that everyone is talking about sustainability nowadays. Accountants in SMPs are watching the news and listening to the debate. You may well be asking questions like: “What can I do in the face of a global issue?” “How will this affect my practice and my clients’ businesses?” “What questions will my clients ask me next?” “ What expertise should I be developing now?” “How will sustainability work for me?” The sense of urgency to address climate change across the world is intensifying. Droughts, floods and wildfires are increasing, ecosystems are collapsing, and in response people are calling for change. But climate change is part of a broader sustainability challenge – one that can be summed up as ‘environment, social and governance’, or ESG. The responsibility to meet this challenge falls on all businesses and firms, including small ones. As ESG continues its rise up the political and corporate agenda, smaller businesses now more than ever need to meet certain ESG criteria so they can access finance, win contracts or be part of larger companies’ value chains. Clients and consumers also expect businesses to have a positive impact on the environment and to be doing their part to contribute to change. Companies that want to prosper in the future will have little choice but to become sustainable. Small businesses have a crucial role in the transition to more sustainable economies and societies. Accountants are key financial advisors for those businesses, but also need to understand and implement sustainability practices for their own businesses. This article discusses the opportunities for small businesses – and their advisors – in embracing sustainability. “Practices who want to engage particularly with the next generation of staff and clients need to be able to take sustainability seriously and need to be able to demonstrate that” Conal Kennedy, Head of Practice Consulting, Chartered Accountants Ireland Environmental, social and economic issues present huge risks for businesses. Examples include: losing out to competitors; having reduced access to capital; developing weaknesses in supply chains; developing succession risks; and failing to meet the requirements of stakeholders, including consumers, clients, banks, business partners, staff and regulators. Accountants can identify and quantify these risks for their own practices, and develop policies for themselves and their clients to address them. But managing risks against ESG factors can also benefit businesses directly. As this article will show, if properly addressed, it impacts employee welfare, improving employee experience and leading to greater output; it affects ability to access finance; it enhances an organisation’s reputation, helping to attract new business and staff; and it can help companies comply with supply chain requirements of their larger clients. Preparers and auditors of financial statements will also need to consider these issues going forward. Generating new business Many accountants are now adding “sustainability consulting” to their services to clients. As trusted advisors, they can play a key role in helping SME clients think about their potential sustainability risks, and leverage opportunities offered by the sustainable transition. For example - Accountants can help clients to: assess sustainability impact and risks improve efficiencies reduce costs avail of grants acquire finance identify opportunities to expand their range navigate the changes Sustainability is also an increasingly important factor in tendering for contracts with larger organisations which have stricter sustainability goals. Some of these large organisations perform assessments of potential suppliers. Others also carry out regular risk screenings of existing supply-chain suppliers, and/or conduct internal audits and onsite supplier audits to verify that their supply chain suppliers are conforming to their policies. Accountants have a huge role to play in helping companies prepare this information, and in doing so themselves if they are part of these supply chains or are tendering for contracts. Accessing Finance Embracing sustainability is working towards ensuring the financial future of accountants’ businesses or their clients’ businesses. Investors are actively looking to invest in sustainable projects, and are screening out certain sectors or companies (like those heavily reliant on fossil fuels, for example). Businesses seeking this investment benefit from being able to collect and report on their sustainability-related activities against a recognised standard. Many banks are also adopting sustainability criteria and may require proof of sustainable practices from companies looking to avail of finance. There are also business grants as well as support schemes and tax incentives available for organisations looking to transition to more sustainable practices. Again, accountants have a huge role to play in guiding clients through this. Savings Operating in a sustainable manner saves costs. While there may be short-term costs associated with transitioning to a sustainable business model, businesses can recoup the investment they make and can also reduce their business costs by introducing more sustainable ways of working. According to the Sustainable Energy Authority of Ireland (SEAI), the average SME can save up to 30% on its energy bill by becoming more energy efficient. A business with an engaged and motivated team is also less likely to experience high employee-turnover and associated costs. In a drive to decarbonise Ireland’s economy, the rate of carbon tax increased by €7.50 in October 2020 from €26 to €33.50 per tonne/CO2. Reducing your carbon emissions will reduce your cost. Ultimately, though, any costs associated must be reframed as the cost of compliance or risk management. The greater costs are the costs of not being sustainable. Reputation With social media increasing access to companies, there are very few places to hide for organisations which are falling short of sustainability-related expectations. Staff expect it, and customers demand it. Companies not being transparent about their sustainability achievements, or their goals, will be called out by their customers and staff. Likewise, there is little patience for companies that are ‘green-washing’, i.e. presenting a false or misleading green public image. “64 percent of customers are ‘belief-driven buyers’ who will choose, switch, avoid or boycott a brand based on its stand on societal issues.” 2019 Edelman Trust Barometer Special Report: In Brands We Trust? Mobile Survey Attracting clients On the flip side, though, organisations that do embrace sustainability are in a strong position to attract clients. They can do this by becoming more visible in their community. Supporting local literacy or numeracy projects, participating in local charities or sports clubs, or engaging in local-tree planting initiatives not only increases brand awareness of a firm or business: it builds trust with a community. Remember – not everyone may be doing this, so you will have a first-mover advantage if you do. As a greater number of large companies are either required to or decide to report on human rights, diversity and climate-related policies, a greater number of local businesses supplying those companies will also be obliged to disclose their own sustainability practices, and will need help from a financial advisor to do so. Accountants who are experienced in offering clients this support may attract more clients looking to comply with the sustainability requirements of large organisations. Attracting & retaining talent Candidates are actively seeking jobs in companies with strong ESG credentials and are rejecting jobs in those companies not aligned with their own values. What was identified by McKinsey in 1997 as the ‘war for talent’ is as fierce as ever within the professional services sector, and organisations are going to great lengths to recruit talent. These same companies are now including their commitment to ESG values as a competitive differentiation. This is a trend seen by Karin Lanigan, Head of Member Experience in Chartered Accountants Ireland: “I have worked in recruitment for more than 20 years and in recent years, I have noticed a growing trend whereby candidates have become more and more discerning about types of organisations they’ll work for. They are not just considering salary and package; they are looking at the sector, at the reputation of an organisation, and asking themselves ‘will I feel proud if I’m out with my friends on a Friday night to say that I work with whatever the organisation is or whatever the sector is that they are in?’ They want to have sense of pride in their place of work.” Remember: a commitment to ESG does not have to mean having a large sustainability department or running an eco-business. It can also mean being a firm or company that looks after its employees, provides good training and promotion opportunities, and is active in its local community. “With ‘measurements’ everyone thinks of ‘carbon footprint’. But it doesn’t have to be. You can measure staff satisfaction through surveys. You can measure employee-turnover and retention or absenteeism. Encourage staff to measure the number of hours they spend giving back to others in the community.” Teresa Campbell, PKF FKM Impact on Financial Statements Preparers and auditors of financial statements should consider the impact on sustainability and climate change on every entity. Quoted companies, and some categories of larger companies have defined obligations to report on the impact of environmental matters on the companies’ businesses. These specific reporting requirements do not apply to private limited companies reporting under FRS 102. However, climate change and sustainability are major and developing issues that cannot be ignored by anyone. Both IAASA and the FRC have recently commented on matters that they expect to see considered in financial statements. Whilst their comments were largely made in the context of the IFRS framework, much of what they have said is directly applicable to financial statements prepared under FRS 102. Accountants should consider and report on how climate change has impacted on the assets and liabilities of the company, what additional risks have emerged and whether new or increased provisions are necessary. How has climate change impacted on the estimates and judgements applied, and do these need to be disclosed? Consider such matters as the useful lives of property, plant and equipment. Consider also the impact on impairment assumptions. Does the entity have an obligation to remediate environmental damage caused by any of its activities? Have any of its contracts become onerous, or are they likely to? The financial statements, taken as a whole, should contain sufficient information to be useful to stakeholders, and preparers should avoid the use of non-specific boilerplate. See IAASA’s recent observations on published financial statements. The Institute will cover these areas in more detail in future issues of Practice Matters, broadcasts of Practice News, and CPD courses. Some member resources Find more on the Institute’s Sustainability Hub with resources from articles, podcasts and webinars to a glossary explaining the acronyms and terms. You can also find tips in the Institute’s guide on Sustainability for Accountants. This free guide for accountants describes what to do – and where to start – to operate sustainably, successfully and cost-effectively.