Welcome to this week’s Technical Roundup.
In developments in recent weeks, IAASA has published a Consultation Paper on its proposals to adopt Standards for Investment Reporting (Ireland) (‘SIRs (Ireland)’); Accountancy Europe is calling for the European Union and its national governments to move to a sustainable and resilient economy as part of recovering from the pandemic.
Read more on these and other developments that may be of interest to members below.
Financial Reporting
IAASA has published summary information of its financial reporting enforcement activities undertaken during 2021. The Snapshot document may be accessed here.
The European Financial Reporting Advisory Group (EFRAG) have issued a summary report entitled “Targeted disclosure: what we learnt from the field test with European preparers”. The report summarises the results of fieldwork conducted by EFRAG and the IASB on the IASB Exposure Draft Disclosure Requirements in IFRS Standards - A Pilot Approach.
The International Accounting Standards Board (IASB) has published an article on its Extractive Activities project.
EFRAG has published its draft comment letter in response to the IASB's Exposure Draft ED/2021/10 Supplier Finance Arrangements and seeks constituents' views on the proposals. Comments on the draft comment letter are requested by 9 March 2022.
Each year, the FRC carries out an annual review of FRS 101 to provide additional disclosure exemptions as IFRS evolves and to respond to stakeholder feedback about other possible improvements. In its 2021/2022 annual review of FRS 101 which is contained in FRED 79- FRS 101 Reduced Disclosure Framework- 2021/22 cycle, the FRC is proposing no amendment to FRS 101. The Institute has agreed with the proposal in its response to the consultation which runs until 1 March 2022.
Sustainability
Accountancy Europe is calling for the European Union and its national governments to move to a sustainable and resilient economy as part of recovering from the pandemic.
Accountancy Europe has also issued its Sustainability January 2022 update.
The IFRS Foundation Trustees have appointed Emmanuel Faber as Chair of the International Sustainability Standards Board.
Audit
IAASA has published a Consultation Paper on its proposals to adopt Standards for Investment Reporting (Ireland) (‘SIRs (Ireland)’). The proposed effective date of the SIRs (Ireland) is for reporting accountant engagements commencing on or after 15 September 2022. Responses are requested by Friday 15 April 2022.
The FRC has published its 3-year Plan for 2022-25 which acknowledges the FRC’s continued commitment to being an effective and transparent regulator as it prepares to transition to the Audit, Reporting and Governance Authority.
Insolvency
At a recent meeting of the Eurogroup (see further below) Ministers had a discussion on the solvency situation of the corporate sector and potential measures to facilitate corporate restructuring and economic adjustment in the euro area in the recovery after the global COVID-19 pandemic. You can read the technical note to the group which gives insight into the view on policy support measures going forward including that the phasing-out of support measures should be accompanied by the adaptation of insolvency frameworks.
Other Areas of Interest
The Irish Charities Regulator recently published its third Statement of Strategy focussing on proportionate regulation and greater communication with charities and the public. It includes a new classification standard for charities and the provision of more support material and guidance to ensure that they are well-governed. You can read the press release here and the statement of strategy here.
The Central Bank of Ireland issued a press release recently giving details of its commencement of a public consultation on the application of the Minimum Competency Code 2017 and the Minimum Competency Regulations 2017 to credit union core services. The minimum competency standards were first introduced by the Central Bank on 1 January 2007 and established minimum professional standards for staff of financial service providers with particular emphasis on staff dealing with consumers in relation to retail financial products.
The Minister for Finance Paschal Donohoe recently attended a meeting of Eurogroup of which he is president. Remarks he made following the meeting can be found here. Some of the matters discussed were economic adjustment and resilience in terms of recent performance of the euro area compared to international peers. You can read more about that here. They also discussed the draft European council recommendation on the economic policy of the euro area for 2022 and the solvency situation in the corporate sector (see above).
The UK Government recently published its National Cyber Strategy 2022. The Minister introducing it stated that it will ensure that the UK remains confident, capable and resilient in the digital world and continues to adapt, innovate and invest in order to protect and promote UK interests in cyberspace. The strategy sets out 5 pillars to its framework with actions and outcomes intended to be achieved by 2025.
The Irish Health and Safety Authority’s new Strategy Statement 2022 – 2024 and Programme of Work 2022 were launched recently. Readers may be interested in its stated key goals of its strategy statement of tackling current and emerging challenges and opportunities in Ireland’s workplaces including the introduction of remote/hybrid working, advancements in technology and the green economy, the ‘gig economy’, and the particular needs of vulnerable workers and migrant groups.
The UK Financial Conduct Authority is strengthening its financial promotion rules for high risk investments, including crypto assets .It is consulting on proposed changes to: its classification of high-risk investments; the consumer journey into high-risk investments; strengthening the role of firms approving and communicating financial promotions; applying its financial promotion rules to qualifying cryptoassets. Click here for the FCA information page and here for the consultation paper. The consultation closes on 23 March 2022.
The Advisory Scientific Committee of the European Systemic Risk Board recently published its report on Digitalisation and the future of banking. The report considers how digitalisation may change the way financial services are provided in the future, identifying financial and non-financial risks and forming possible policy responses to them.
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