Technical roundup, 10 July

Chartered Accountants Ireland

• Chartered Accountants Ireland has updated the Technical and business updates page on our COVID-19 Hub with updates on Auditing implications of Coronavirus, Financial Reporting implications of Coronavirus and Information for insolvency practitioners.  We have also updated our page on Other Regulator Updates for both ROI and NI / UK in response to COVID-19.  

Ireland

• The Companies Registration Office (CRO) have published their 2019 Annual Report. 

UK

• A SORP engagement process has begun as convenors are appointed to take forward discussions on the next SORP. The Charities Statement of Recommended Practice (SORP) sets out the framework for how larger charities prepare their annual report and accounts.
• The Financial Reporting Council (FRC) has announced its ‘principles for operational separation’ of the audit practices of the Big Four firms.
• The FRC has this week issued a revision of its standard for the identification and assessment of risks of material misstatement in an audit of financial statements. The revised standard (ISA (UK) 315 (Revised – July 2020) - Identifying and Assessing the Risks of Material Misstatement) adopts the revisions made to the underlying international standard issued by the International Auditing and Assurance Board (IAASB).   

• Accountancy Europe have issued their June SME Update.
• The Eumedion Foun­da­tion based in the Nether­lands has published a position paper 'Towards a global, investor focused standard setter for corporate non-fi­nan­cial reporting' calling on the IFRS Foun­da­tion to establish such a stan­dard-set­ter.
• Following an EFRAG Board meeting earlier in the week, the European Financial Reporting Advisory Group (EFRAG) has issued final en­dorse­ment advice on ' Extension of the Temporary Exemption from Applying IFRS 9 (Amend­ments to IFRS 4)'.
• In February 2020, the European Com­mis­sion (EC) launched an ini­tia­tive to review the European Non-Fi­nan­cial Reporting Directive, One of the aspects of the review looks at whether to mandate the use of a common set of non-fi­nan­cial reporting standards and whether these should be es­pe­cially developed European standards. The EC has now sent two letters to EFRAG asking it to undertake prepara­tory work for the possible elab­o­ra­tion of such standards.

 International

• The IFRS Foundation has appointed 21 new members and one observer to the SME Implementation Group (SMEIG) for a three-year term starting 1 July 2020.
• On 7 July 2020, IASB member Ann Tarca delivered a speech at the virtual annual con­fer­ence of the Accounting & Finance As­so­ci­a­tion of Australia and New Zealand (AFAANZ). She discussed digital reporting and included questions for prac­ti­tion­ers, stan­dard-set­ters and re­searchers.