Welcome to this week’s Technical Roundup. In developments this week, the IFRS Foundation has issued a summary of the recent World Standard Setters Conference held on 26-27 September. This includes updates on recent, ongoing and upcoming work by the IASB and ISSB and the European Securities and Markets Authority (ESMA) and the EU’s financial markets regulator and supervisor, has recently 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 The Financial Reporting Lab is launching a project to understand how companies develop, assess and use materiality and to consider how enhancements to disclosure about materiality processes might assist investors. The project is expected to cover financial and non-financial reporting. The IASB have released the final instalment of its Dynamic Risk Management (DRM) webcast series. These webcasts explain the DRM project based on the IASB’s tentative decisions to date. The IFRS Foundation has issued a summary of the recent World Standard Setters Conference, held on 26-27 September. This includes updates on recent, ongoing and upcoming work by the IASB and ISSB. The FRC will be holding a webinar on Structured digital reporting – improving quality and usability on 8 November. This will cover some of the key points raised in the FRC Lab’s recent report on Structured Digital Reporting. The FRC will also be holding a webinar on this year’s Annual Review of Corporate Reporting on 2 November. EFRAG has released its educational session on the Primary Financial Statements project. Audit - Quality Management IAASA over recent weeks has published a series of videos designed to provide information on the new suite of Quality Management Standards in Ireland. The full series is available here. To accompany the video series, IAASA has published a factsheet for each Quality Management Standard available here. The new standards apply to periods from 15 December 2022. See our QM resource pages for links to the standards and further guidance. Anti-money laundering, sanctions Click here for the “Inside FCA Podcast: Fighting Financial Crime” where the FCA Executive Director of Markets speaks at the Financial Crime Summit in London. Also see the remarks by the  interim Chair of the FCA and Chief Executive of the FCA delivered recently at the FCA's 2022 Annual Public Meeting. The UK National Crime Agency’s latest edition of SARs in action is now available. It includes items on the red alert issued by the Joint Money Laundering Intelligence Taskforce in July 2022 on Russia elite and enablers, non-fungible tokens and money laundering and trade-based money laundering. Please click here to access the October issue. Other The Corporate Enforcement Authority, (CEA), has drafted an Information Note concerning the European Union (Preventive Restructuring) Regulations 2022. The Note will provide a list of potential early warning indicators which may help directors to identify that the company is approaching financial difficulties. It will also give information on the restructuring options available to companies facing financial difficulties, but which may otherwise have a reasonable prospect of survival. CEA is inviting interested parties to submit their views on the draft Information Note by 5pm on 1 November 2022.Readers can access the draft information note here. Revenue has announced a 12-month extension to the Debt Warehousing Scheme to continue to support businesses. Under the scheme, businesses with warehoused debt were due to enter into an arrangement with Revenue to deal with that debt by the end of the year - or by 1 May 2023 for those subject to an extended deadline.  But given the current economic uncertainty, Revenue said it was now extending that timeline to 1 May 2024. Th Minister for Business, Employment and Retail recently introduced draft legislation, the Employment Permits Bill 2022 which if enacted will help modernise the Employment Permit system in Ireland. You can read the press release and access the draft bill on this page. The Deputy Governor of Central Bank of Ireland recently spoke at Climate Finance Week 2022 on the topic of addressing Climate Risk in the Financial System today. She talked about prioritising climate risk at the Central Bank and how firms should identify and manage climate risks. You can click here to read the speech. Announcing the Northern Ireland Charity Commission’s first public meeting since pre COVID-19, Chief Charity Commissioner, Nicole Lappin, highlighted the event as an important opportunity for the charity sector, and for the Commission itself.  The event will include an overview of the Commission’s work and development in recent years, the changes brought in following new Charities Act (Northern Ireland) 2022 as well as the regulator’s plans for the future. Date: Wednesday 16 November 2022 Time: 10am – 12.30pm (registration from 9.45am, refreshments will be available) Venue: Chestnut Suite, Lagan Valley Island, Lisburn The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has recently published its latest edition of its Spotlight on Markets Newsletter. For further technical information and updates please visit the Technical Hub on the Institute website. 

Welcome to this week’s Technical Roundup. In developments this week, IAASA has published a paper setting out information requests that it has raised with companies on their climate-related disclosures in their annual financial reports and did you know about the European Commission’s podcasts? Short episodes are released at the same time as the monthly EU Commission Finance Newsletter on topics related to banks, capital markets, insurance, digital or sustainable finance, anti-money laundering, sanctions, etc. Read more on these and other developments that may be of interest to members below. Financial Reporting In their latest edition of “Insight from SME accountants” series, Accountancy Europe looks at how sustainability matters for the new generation of accountant. The IASB has produced a series of eight webcasts to explain the Dynamic Risk Management project to date. The FRC Lab has published a report on the disclosure of net zero commitments. This provides tips for companies on how to consider when disclosing their commitments. IAASA has published a paper setting out information requests that it has raised with companies on their climate-related disclosures in their annual financial reports. Anti-Money laundering, sanctions On 6 October 2022 the European Union announced its eighth package of sanctions. Click here for a press release on the eighth package of sanctions and please also visit our sanctions webpages “Europe & International” for more details of what the eighth package consists of. HMRC in the UK has recently issued an economic crime supervision annual self-assessment report for the period  1 April 2021 to 31 March 2022 which it says  analyses the extent to which HMRC is meeting its obligations under the Money Laundering Regulations 2017, as well as comparing it to the standards set for professional body anti-money laundering supervisors. The National Cyber Security Centre Ireland has a quick guide to phishing to help to avoid being phished, spotting the giveaway signs of phishing e-mails, and what to do if you think you’ve already clicked the attacker’s bait. Other The Minister for Public Expenditure and Reform recently signed the commencement order for the Protected Disclosures (Amendment) Act 2022 to set 1 January 2023 as the date on which the Act will commence in its entirety. Readers may be aware that the new legislation will substantially amend the Protected Disclosures Act 2014. It will expand the categories of protected person to include protections for volunteers, shareholders, board members and job applicants for the first time. It also expands the wrongs in respect of which a protected disclosure can be made. It imposes requirements on organisations to put internal whistleblowing procedures in place and a new Office of the Protected Disclosures Commissioner will be established. You can read more in the Department’s press release on its website here and we will provide more information to members in due course on this topic. The Department of Enterprise, Trade and Employment has published its October's Enterprise Newsletter. This includes information about Budget 2023 helping businesses and families with escalating energy costs, the Cross-Government launch of a new National Implementation Plan for the Sustainable Development Goals 2022-2024, and EU trade sanctions in response to situation in Ukraine. There are also details of a new pay agreement providing pay increases and wage structure for early learning and childcare workers, publication of the Final Report of the LEEF High-Level Working Group on Collective Bargaining, and public consultation on the Single Market Emergency Instrument. The newsletter can be found here. The Pensions Authority has published the results of a survey conducted on trustees’ IORP II preparedness. The survey provides information on pension scheme trustees’ progress since a similar survey was carried out in 2020. The survey findings indicate that while significant progress has been made by scheme trustees to meet the requirements of the Act, there is still work to be done by trustees to ensure compliance ahead of the 1 January 2023 deadline. The survey findings also indicate that most DB scheme trustees surveyed intend to continue their scheme, while almost half of the DC trustee respondents noted an intention to wind up their scheme and move to a master trust. Further information and the results can be found here. Did you know about the European Commission’s podcasts? Short episodes are released at the same time as the monthly EU Commission Finance Newsletter on topics related to banks, capital markets, insurance, digital or sustainable finance, anti-money laundering, sanctions, etc. The latest one “the on about Anti Money laundering dated 29 September 2022 can be accessed now. Please also click here to read the European Commission’s latest Banking and Finance newsletter where DG FISMA's Director-General talks about topics including the energy crisis and  sanctions, and includes a short discussion about cryptocurrencies, the current ‘crypto winter’, and the digital euro. Cathy Shivnan, the Corporate Enforcement Authority’s (CEA) Director of Insolvency Supervision, sat down recently with Graham Kenny of Eversheds Sutherland LLP to talk about the role of the newly established CEA. The CEA is now the competent authority in Ireland for the investigation of breaches of the Companies Acts and the taking of necessary enforcement actions. You can listen here. For further technical information and updates please visit the Technical Hub on the Institute website. 

The FRC Lab has published a report entitled "Net zero disclosures". This report, which highlights examples of current practice, discusses some of the key considerations for investors who use net zero disclosures and the elements of net zero disclosures that investors want to understand. The report builds on three key elements of net zero disclosures (commitments, impacts and performance) and discusses areas of consideration and challenge within these topics. The report provides some useful guidance for preparers seeking to navigate the difficult area of reporting on their greenhouse gas emission reduction commitments.

Welcome to this week’s Technical Roundup. In developments this week, the IFRS Foundation has published its September 2022 monthly news summary which highlights the news and events from the past month and in a recently released episode of the International Accounting Standards Board podcast, Chair Andreas Barckow and Executive Technical Director Nili Shah, talk through the highlights from the September 2022 IASB meeting. Read more on these and other developments that may be of interest to members below. Financial Reporting IAASA has published its annual Observations paper highlighting matters that those charged with governance should consider when preparing their financial statements for 2022. The Financial Reporting Council (FRC) Lab have issued their September 2022 news roundup. EFRAG, the European Financial Reporting Advisory Group has published its September 2022 update. In its September 2022 podcast, the ISSB discuss the highlights from its recent board meeting. The IASB have also released its September 2022 podcast. The IFRS Foundation has published its September 2022 monthly news summary which highlights the news and events from the past month. The FRC has published a report on Navigating barriers to senior leadership for people from minority ethnic groups in FTSE 100 and FTSE 250 companies.  Auditing and Assurance The Financial Reporting Council (FRC) has opened a post implementation review of the auditing standard (ISA) (UK) 540 (Revised December 2018) Auditing Accounting Estimates and Related Disclosures. This ISA became effective for audits of accounting periods beginning on or after 15 December 2019. Interested stakeholders are also invited to attend one of two roundtables to support the call for feedback. These are being held on: Wednesday 23 November 2022, 14:00-15:00 (online) Thursday 24 November 2022, 11:00-12:00 (in person at the FRC’s offices) To RSVP for the roundtables please email stakeholderengagement@frc.org.uk. The call for feedback is open until 13 January 2023. Accounting In a recently released episode of the IASB podcast, Chair Andreas Barckow and Executive Technical Director Nili Shah talk through the highlights from the September 2022 IASB meeting. Ethics and the Ukraine Conflict The Staff of the International Ethics Standards Board for Accountants have released the Staff Alert, The Ukraine Conflict: Key Ethics and Independence Considerations. The publication draws the attention of professional accountants in business and in public practice, including firms, to a number of important provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) with which they must comply in carrying out their work as they navigate the unprecedented challenges and risks arising from the Russia-Ukraine war. Other The Pensions Authority has published its Annual Report and Accounts for 2021. The Annual Report and Accounts for 2021 and an accompanying statement from the Pensions Regulator, Brendan Kennedy, can be read here. Also in Pensions Authority news, they recently published information in relation to exit charges, trustee annual reports and audited accounts for one member arrangements (OMAs) migrating into a master trust. You can read more details from their website here. The Pensions Authority has also published an update for trustees in relation to trustee annual reports and audited accounts for group schemes with less than 100 active and deferred members transferring to a master trust or PRSAs. The UK Financial Conduct Authority has published research showing that a quarter of consumers it surveyed would withdraw pension savings earlier to cover cost of living – making them vulnerable to scammer ‘misdirection’. It has recently launched its latest ScamSmart campaign aimed at giving consumers the knowledge and tools to avoid pension scams and you can read more about it here. The Central Bank has recently announced a review of the Consumer Protection Code 2012 (“Code”) to modernise it and ensure it is fit for purpose. The Code is a set of principles and rules that regulated financial firms must follow when they sell financial products and services, give financial information or advice, advertise financial products or services and handle complaints of consumers. A discussion paper has been published and you can click on the link to access the discussion paper and complete the survey. The Central Bank published its final Quarterly Bulletin of 2022 and  you can read the press release here. Chartered Accountants Ireland Western Society was pleased to co-host the launch of the Bulletin in the Galmont Hotel Galway on 6 October 2022. The event was an opportunity to discuss the general outlook for the Irish economy and the Bulletin which noted that energy-driven inflation is causing uncertainty and challenges for domestic growth. Following a short presentation, attendees were invited to ask questions from the panel moderated by Dr Brian Keegan, Director of Advocacy and Voice, Chartered Accountants Ireland.  The panel included Robert Kelly, Director of Economics and Statistics, Ireland; Tara McIndoe-Calder – Senior Economist, Central Bank of Ireland and Cathal O'Donoghue – Established Chair, Social and Public Policy, National University of Ireland, Galway. Please click here to access a podcast by Europol on Ransomware. A number of cybercrime specialists speak about how law enforcement dealt with a cybercriminal network selling ransomware services. Also in Ireland on this topic, the National Cyber Security Centre and the Garda National Cyber Crime Bureau this week launched a joint public awareness campaign for European Cyber Security Month. The campaign this year is focused on the twin themes of phishing and ransomware, urging vigilance and outlining their potential impacts on the everyday lives of Irish citizens and businesses. You can read more in the Dept. of Justice press release here. On Wednesday of this week there was a cross government launch of  the new National Implementation Plan for the Sustainable Development Goals 2022-2024. Its purpose is to  increase Ireland’s ambition and strengthen implementation structures to achieve the Sustainable Development Goals (which are set out in the plan). The Minister of State at the Department of Finance with special responsibility for Financial Services, Credit Unions and Insurance, Seán Fleming, recently launched an update of the Ireland for Finance strategy. This update charts the future development of the international financial services sector in Ireland to the end of 2026. Under the updated strategy the government has a target to grow employment in the sector by 5,000 net new jobs. You can read the press release here and access the updated strategy by clicking here and clicking the Updated Ireland for Finance Strategy. For further technical information and updates please visit the Technical Hub on the Institute website. 

Welcome to this week’s Technical Roundup. In developments this week, the Irish Pensions Authority recently published information for trustees on the appointment of a service provider to carry out more than one key function and the Financial Reporting Council has published the revised ISA (UK) 600 (Revised September 2022) Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors). Read more on these and other developments that may be of interest to members below. Financial Reporting The UK Endorsement Board (UKEB) has published a report entitled “Subsequent Measurement of Goodwill: A Hybrid Model”. This report contributes to the ongoing international debate on the subsequent measurement of goodwill. The Financial Reporting Council Lab has published a report entitled “Structured Digital Reporting - Improving quality and usability”. This report identifies lessons learned from the first year of mandatory structured digital reporting. The FRC are holding a joint webinar with the Financial Conduct Authority (FCA) to discuss the regulators views on the first year of TCFD-aligned disclosures. The FRC has also published its thematic review of the accounting and reporting for business combinations. The European Financial Reporting Advisory Group (EFRAG) has published a discussion paper on Accounting for Variable Consideration from a Purchaser’s Perspective, and invites constituents to comment by 31 May 2023. IAASA has published a Consultation Paper on its proposed revised Policy Paper – Publication of information regarding IAASA’s financial reporting supervision activities. The International Accounting Standards Board (IASB) has issued narrow-scope amendments to IFRS 16 Leases, which add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction. These amendments will apply for periods beginning on or after 1 January 2024, with early adoption permitted. The IASB has issued its September 2022 update. The taskforce on Disclosures about Expected Credit Losses has published a report entitled “Recommendations on a comprehensive set of IFRS 9 Expected Credit Loss disclosures”. The guidance is aimed primarily at the biggest UK-headquartered banks and building societies but is also likely to be relevant to a much wider group of preparers. Auditing and Assurance Revisions to ISA (UK) 600 The FRC has published the revised ISA (UK) 600 (Revised September 2022) Special Considerations -Audits of Group Financial Statements (Including the Work of Component Auditors). IAASA has published its fourth video in a series designed to provide information on the Quality Management Standards in Ireland. This video provides an overview of International Standard on Quality Management 2 – Engagement Quality Reviews. Click here to access the video. Sustainability The IFRS Foundation staff has prepared the staff request for feedback on the draft of the IFRS Sustainability Disclosure Taxonomy. The document outlines staff recommendations reflecting the proposals in the two exposure drafts published by the International Sustainability Standards Board: [Draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information; and [Draft] IFRS S2 Climate-related Disclosures. The European Securities and Market Authority (ESMA) has updated its sustainable finance implementation timeline with an interesting infographic. EFRAG is establishing Community Sector Groups across a number of sectors to allow a range of external stakeholders to provide their input in the development of sector specific draft European Sustainability Reporting Standards. Stakeholders with a direct interest in the sectors listed below can apply to join these groups via the EFRAG website. The groups being established cover the following sectors; Agriculture, Farming and Fishing Coal Mining & Mining Energy and Utilities Food and Beverages Motor Vehicles Oil and Gas Mid to Downstream & Oil and Gas Upstream Road Transport Textiles, Accessories, Jewellery and Footwear The International Sustainability Standards Board (ISSB) has issued its September 2022 update. Corporate Governance The Wates Principles have been widely adopted by large private companies and have become an important part of the UK’s corporate governance environment.  The FRC invites you to an event on 25 October that will explore benefits and opportunities the principles bring to individual companies and the good practice in corporate governance. Other The Irish Pensions Authority recently published information for trustees on the appointment of a service provider to carry out more than one key function. Read further information in their press release. The Authority reminds trustees that they must notify the Authority of any arrangement concerning the outsourcing of a key function within a certain timeframe and it also provides guidance on its website on how to notify the Authority of key function holder appointments. The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has this week published its Report on the distributed ledger technology pilot regime (DLT Pilot). The Central Bank is holding a conference on 2/3 November 2022 the theme of which will be Supporting the Economy, Delivering for the Consumer. Discussions will cover the challenges and opportunities facing the financial system, including climate change, consumer protection, innovation, disruption and regulation. There is a good line up of speakers already with more to be announced. Interested readers can go to the relevant webpage here for further information. Arbitration Ireland recently published “A Concise Guide to Arbitration in Dublin”. It describes the guide as providing the essentials for anyone participating in an arbitration in Dublin, from the basis of the arbitration agreement, the appointment of arbitrators, to the making, challenging and enforcement of the award. This text includes a synopsis of decisions under the Arbitration Act 2010, a summary of the Commercial Court in Ireland and considers the role of Ireland’s designated arbitration judge in addition to general guidance on Irish contract law. Interested readers can download their free copy by following this link. The Financial Conduct Authority in the UK has recently updated its page on Cryptoassets: AML / CTF regime. Click the link to access the page for further information. In the UK the government has recently introduced the Economic Crime and Corporate Transparency Bill  Click here to read the UK Government press release on the Bill  and click here for a government factsheet. According to an article on the Bill by Eversheds Sutherland the Bill builds on the Economic Crime (Transparency and Enforcement) Act 2022 which came into effect in the UK on 15 March 2022. The Bill proposes to expand the powers given to Companies House and to improve transparency over UK companies to better protect the UK economy and improve its reputation as a place of legitimate business. It also includes plans to expand the Serious Fraud Office’s  investigative powers. Also see here an article from Reynolds Porter Chamberlain LLP solicitors (RPC) on the provisions in the Bill to make it quicker and easier for law enforcement agencies, such as the National Crime Agency, to seize, freeze and recover cryptoassets used by criminals to launder the proceeds of crime. According to RPC the Bill is due to have its second reading in October and a number of amendments can be expected before the Bill is enacted. In its fifth episode of “The Fast Future with IFAC” Amy Bridges, Professional Development Manager at CPA.com offers an expert view of the market for client advisory services and a wide range of opportunities and challenges for Small and Medium Practitioners. The Department of Children, Equality, Disability, Integration and Youth has informed the Decision Support Service (DSS) that a ‘go-live’ date of 21 November 2022 has been selected for the full commencement of the Assisted Decision-Making (Capacity) Act 2015 (the 2015 Act). The DSS will provide further updates in advance of its commencement. For further technical information and updates please visit the Technical Hub on the Institute website.   

Insolvency practitioners in particular and other readers may find of interest the recent judgment of Butler J in the Irish High Court in the case of Bayview Hotel (Waterville) Limited (the “Company “) and the Companies Act 2014. The judgment can be accessed free of charge on the BAILII website by clicking the link to the judgment. There were two opposing groups of creditors of the Company. The petitioner applied for the Company to be wound up on grounds set out in the Companies Act, 2014 either of being unable to pay its debts (under section 569(1)(d)) or on the basis that the court is of the opinion that it is just and equitable to wind the Company up (under section 569(1) (e)). There was much dispute as to the business dealings of the two opposing groups and poor records of transactions and prior recollections were given little weight by the judge in the case. Some considerations which may be of interest in the case include: The position of a creditor who opposed the winding up petition to speak on behalf of the Company. This creditor was also a director of the Company. The judge said that this creditor personally had much to gain if the court were to accept the arguments that he now purports to advance on behalf of the Company. In the circumstances of board deadlock between rival interests and a dispute about ownership of shares it would not be in the interests of justice to allow one of the two competing factions to speak on the Company’s behalf. A review of the law as to whether or not the Company was able to pay its debts. The court set out the test for insolvency: is the Company able to pay its debts as they become due? On a review and application of the law to this case the judge was satisfied that the Company was unable to pay its debts within the meaning of S 569(1)(d) of the Companies Act, 2014. Winding up on the just and equitable ground. The court was satisfied that the company could be wound up because it was unable to pay its debts. Therefore, it was not necessary for the judge to give a decision on winding up on the just and equitable ground. However, she outlined her views which are obiter and persuasive only, in case the matter was taken further. She said that in the circumstances there has been a complete falling out between the parties, there was deadlock on the board of directors and there is no evidence that agreement could be reached on the voluntary sale of the hotel. The judge said she would be minded to also grant the petition to wind the Company up on the just and equitable ground. The judge also gave some consideration to the exercise of discretion by the court and made reference to some recent Irish caselaw in the matter. These pages are provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by Chartered Accountants Ireland in the preparation of these pages, we do not guarantee the accuracy or veracity of any statement, resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. Chartered Accountants Ireland is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.