Technical Roundup 25 June

Welcome to this week’s Technical Roundup.  

In developments this week, the IFRS Foun­da­tion has launched a new webpage on its site which contains in­for­ma­tion and meeting summaries related to the Technical Readiness Working Group (TRWG); The latest Accountancy Europe blog discusses how the modern economy is flawed as it tends to ignore non-financial ‘externalities’, like the environment, when considering a company’s bottom line. As a result, our planet is at risk of massive environmental degradation.

Read more on these and other developments that may be of interest to members below.

Financial Reporting

The IFRS Foun­da­tion has launched a new webpage on its site which contains in­for­ma­tion and meeting summaries related to the Technical Readiness Working Group (TRWG).

At its meeting this week, the International Accounting Standards Board discussed a possible nar­row-scope amendment to IFRS 17 'Insurance Contracts' presented by the staff. The staff has developed an optional clas­si­fi­ca­tion overlay approach that would address one-time clas­si­fi­ca­tion dif­fer­ences that may arise in the com­par­a­tive in­for­ma­tion that insurers will present on initial ap­pli­ca­tion of IFRS 17 and IFRS 9.

The European Banking Authority has published its Report on management and supervision of ESG risks for credit institutions and investment firms.

On Wednesday 30 June, EFRAG and the IASB will host a webinar: Targeted disclosure: how would it work in practice? Blueprint for future IFRS disclosures. Michael Fechner, EFRAG Board member, will moderate three different panel discussions. The panellists from EFRAG TEG, EFRAG TEG working groups and observers will provide the views of users, preparers, auditors, enforcers and for IAS 19, an actuary, on the topic.

Sustainability

The latest Accountancy Europe blog discusses how the modern economy is flawed as it tends to ignore non-financial ‘externalities’, like the environment, when considering a company’s bottom line. As a result, our planet is at risk of massive environmental degradation.

The Financial Conduct Authority has published new proposals on climate-related disclosure rules for listed companies and certain regulated firms. The proposals follow the introduction of climate-related disclosure rules for the most prominent listed commercial companies in December 2020 which are aligned with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).

Other areas of interest

The Irish Government have approved the publication of the Companies (Rescue Process for Small and Micro Companies) Bill 2021. The Bill amends the Companies Act 2014 to provide for a new dedicated rescue process for small and micro companies. While Ireland’s current rescue framework, examinership, is internationally recognised and successful in its own right, the associated costs mean it may be beyond the reach of small and micro enterprises. The Bill ensures that these companies now have access to an alternative framework; the Small Company Administrative Rescue Process (SCARP). Read the full announcement here.

The Central Bank of Ireland has published an update to their Anti-Money Laundering/Countering the Financing of Terrorism Guidelines. The Guidelines have been amended to reflect changes made to Irish law by the EU’s Fifth Anti-Money Laundering Directive. They have also updated their guidance on internal governance requirements, de-risking and data protection.

The Office of the Director of Corporate Enforcement has issued its 2020 Annual Report outlining the key activities for the year.

For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.