Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month.
In developments since the last edition, the Central Bank of Ireland has appointed Mary-Elizabeth McMunn as Deputy Governor, Financial Regulation. She will take up her role on 1 January 2025. The International Accounting Standards Board and the International Sustainability Standards Board recently launched a webcast series to discuss how IFRS Accounting Standards and IFRS Sustainability Disclosure Standards complement each other.
Read more on these and other developments that may be of interest to members below.
Audit and Assurance
The Institute has published new guidance ‘Technical Alert 04/2024 – Sample CSRD Limited Assurance Report in accordance with ISAE (Ireland) 3000 as required by Section 1613 of the Companies Act 2014’. The Technical Alert has been prepared to assist members reporting on the limited assurance engagements under the Corporate Sustainability Reporting Directive (“CSRD”) and in compliance with International Standard on Assurance Engagements (Ireland) 3000 .
The FRC has published initial feedback on its market study into the audit market for NHS providers and Integrated Care Boards (ICBs).
Financial Reporting
The Financial Reporting Council (FRC) are holding a webinar entitled “How charities can prepare for major amendments to FRS 102 “ which will discuss the impact of the recent amendments to FRS 102 on charities.
The FRC has issued FRED 86-Draft amendments to FRS 101 Reduced Disclosure Framework 2024/25 cycle. This proposes some changes to FRS 101 as part of the annual review of the standard.
The International Accounting Standards Board (IASB) has announced that it has completed its decision making on the revised IFRS Practice Statement 1 Management Commentary, with an updated Practice Statement expected to be published in the first half of 2025.
The IASB has released its IFRS 19 disclosure tracker. This tracker will assist preparers in applying the new standard and maps the disclosure requirements in IFRS 19 Subsidiaries without Public Accountability: Disclosures to their equivalent disclosures in other IFRS Accounting Standards.
The IASB has issued its December 2024 update and podcast.
Following its exposure draft on Contracts for Renewable Energy earlier this year (to which the Institute issued a response to), the IASB has acted swiftly in issuing targeted amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. These amendments are intended to help companies better report the financial effects of nature-dependent electricity contracts, which are often structured as power purchase agreements.
The FRC has issued a draft three year strategy for 2025-28 along with a draft Plan and Budget for 2025-26.
In its recent podcast, the IFRS Interpretations Committee chair, Bruce McKenzie discussed some of the decisions made at its recent committee meeting held on 26th November. This includes discussions on;
- Application of IAS 29 to identify when an economy becomes hyperinflationary
- Expenditure on carbon credits and R&D activities, and whether these meet the requirements in IAS 38 to be recognised as an intangible asset
Accountancy Europe has issued its December 2024 Newsletter.
EFRAG, the European Financial Reporting Advisory Group, has announced that it has completed its due process regarding the Amendments to IFRS Accounting Standards contained in Annual Improvements to IFRS Accounting Standards – Volume 11. Following the completion of this due process, it has submitted its Endorsement Advice to the European Commission, recommending the endorsement of the Amendments.
EFRAG has published its November 2024 update and have also published an updated Endorsement Status Report, which reflects the publication of the targeted amendments to IFRS 9 and IFRS 7 discussed earlier.
The IFRS Foundation have published proposed updates to its Due Process Handbook to reflect the creation of the International Sustainability Standards Board (ISSB).
The UK Endorsement Board (UKEB) has published its Final Comment Letter and Feedback Statement on the IASB’s Exposure Draft on Equity Method of Accounting–IAS 28 Investments in Associates and Joint Ventures
The IFRS Foundation’s annual conference will be held at the Leonardo Royal Hotel London Tower Bridge on 23–24 June 2025 with details to follow in early 2025.
Andreas Barckow, Chair of the International Accounting Standards Board (IASB), delivered a keynote address at the EFRAG Conference on 10 December. He explained how IFRS Accounting Standards build transparency and trust in financial markets and connect global markets through a common financial language.
Sustainability
EFRAG has added further non-authoritative technical explanations to its compilation of explanations that are intended to assist stakeholders in the implementation of the European Sustainability Reporting Standards (ESRSs).
EFRAG has announced that it has delivered its technical advice on the Voluntary SME (“VSME”) standard to the European Commission. The VSME is designed for undertakings that are not in the mandatory scope of the Corporate Sustainability Reporting Directive (‘CSRD’) and the standard aims to replace the current practice of multiple uncoordinated data requests for ESG information with a standardised set of information that stakeholders can use to fulfil their reporting needs. EFRAG has also released some educational videos on the VSME standard.
The International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) recently launched a webcast series to discuss how IFRS Accounting Standards and IFRS Sustainability Disclosure Standards complement each other.
The ISSB has issued its December 2024 update and podcast.
Accountancy Europe has published its December 2024 update.
The FRC, in its role as the Secretariat to the UK Sustainability Disclosure Technical Advisory Committee, has published the Committee’s final recommendations to the Secretary of State for Business and Trade, recommending endorsement of the first two IFRS Sustainability Disclosure Standards for use in the UK. The committee has recommended some minor amendments to IFRS S1 and S2, as well as requesting additional guidance to assist with implementation.
Anti-money laundering /sanctions
The European Commission: Directorate-General for Migration and Home Affairs, has in recent months issued a report mapping and providing an in-depth analysis of High-risk areas of corruption in the EU The report is described by the Commission as a report to advance the EU’s Anti-Corruption Strategy to combat corruption and reduce its harm to society. It maps high-risk areas and provides an in-depth analysis of the nature of and reasons behind these risks.
Artificial Intelligence (AI)
The European Commission recently hosted 2 webinars one on November 28 2024 exploring the Architecture of the AI Act and offering participants an in-depth look into the AI Act objectives, its risk-based framework, and the governance mechanisms it introduces, including the central role of the EU AI Office. The event was public and open to everyone. The recording of the webinar and the slides can be accessed here. Second Webinar on the architecture of the AI Act was held on 17 December 2024 where AI Office experts continued exploring the nature of the AI Act to enable its smooth implementation. Click for further details and to access a copy of the recording.
Central Bank of Ireland (CBI)
CBI has published
- a review of the regulatory framework for credit union lending, and launched a public consultation on proposed changes to the framework.
- its latest Q4 2024 Quarterly CBI Bulletin which contains its projections for the Irish economy. The report headlines steady growth and lower inflation in the Irish economy, but that geo-economic risks are rising.
-the first edition of its ‘Investment Funds Supervision Bulletin’. CBI states that the purpose of the Bulletin is to inform industry participants of the Central Bank’s areas of recent and ongoing focus, and to provide an insight into future priorities. It is intended that the Bulletin will complement other forms of industry engagement, and CBI hopes to publish a bulletin of this nature annually.
CBI also welcomed the publication this month of the outcome of the OECD review of Central Bank of Ireland’s consumer protection supervisory functions. It had commissioned the OECD to review its supervisory functions against the global standards for financial consumer protection. The OECD assessment found that the Central Bank is strongly committed to fostering and upholding the G20/OECD Principles, which are the international standard for effective and comprehensive financial consumer protection frameworks. It also found that CBI aligns with international standards and that its practices are consistent with peer regulators.
Finally in CBI news, CBI has appointed Ms Mary-Elizabeth McMunn as Deputy Governor, Financial Regulation. She will take up her role on 1 January 2025.
Legislation
The Dept. of Enterprise Trade &Employment (DETE) has announced that the Minister of State for Trade Promotion, Digital and Company Regulation has signed the Commencement Order for the Screening of Third Country Transactions Act 2023 with all provisions of the Act commencing on 6 January 2025. Readers will find more information on the Act in a news item of November 2023 on the Screening of Third Country Transactions Act 2023 and details of and a link to draft guidance issued under the Act in our news round up dated 1 March 2024.
Other
In an interesting and thought provoking piece entitled “10 principles for policymakers to reduce administrative burdens for companies”, Accountancy Europe have shared some recommendations for policymakers to ensure that the expected reforms on simplification and administrative burden reduction are genuine and impactful for businesses.
The Financial Reporting Council (FRC) has published a consultation proposing revisions to Technical Actuarial Standard 300: Pensions (TAS 300) to reflect recent developments in pension scheme funding.
The European Securities and Markets Authority (ESMA) is hosting its conference “Shaping the future of EU capital markets” on 5 February 2025 in Paris, France.
The latest December 2024 newsletter has been issued by the Irish Charities Regulator. It includes links to the Regulator’s overview of the latest charities’ legislation and protecting your charity from cybercrime. Please click here to read the Regulator’s overview of the Charities Amendment Act 2024.
Please click to listen to a podcast from Carmichael, the training and support body for non-profits. Here they speak with Director of Civil Enforcement with the Corporate Enforcement Authority Fallon Judge on dealing with compliance with company law. The Director discusses her role in the CEA and the work of the Corporate Enforcement Authority in relation to charities and their directors.
Charities with an annual reporting deadline of 31 January 2025 are being encouraged to submit their annual return to the Charity Commission for Northern Ireland on time.
The Minister for Trade Promotion, Digital & Company Regulation, Dara Calleary TD has appointed Ms Aisling Kennedy as Chairperson of IAASA from 21 December 2024. Aisling is a current member of the board and has broad experience as a company director in a range of areas.
Wishing all of our members a very happy Christmas and all the best for 2025!
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