Welcome to this week’s Technical Roundup.    In developments this week, the International Sustainability Standards Board has published Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards; the European Securities and Markets Authority has decided to postpone to 2024 the amendment of the European Single Electronic Format (ESEF) Regulatory Technical Standard (RTS). Read more on these and other developments that may be of interest to members below.  Financial Reporting The European Financial Reporting Advisory Group (EFRAG) has published its draft comment letter in response to the International Accounting Standards Board’s (IASB) Exposure Draft 2023/2 Amendments to the Classification and Measurement of Financial Instruments. Comments are requested by EFRAG until 30 June 2023. EFRAG, along with ICAS and EFFAS have published The production and consumption of information on intangibles: An empirical investigation of preparers and users. This academic study looks at the measures and disclosures on unreported intangibles that are considered useful for decision making in financial statements. The Financial Reporting Council (FRC) has published a consultation to revise Technical Actuarial Standard 300 (TAS 300) and introduce Technical Actuarial Standard 310 (TAS 310), aimed at ensuring the actuarial standards in relation to pensions remain relevant and reflect developments in the pension industry. Audit The Commission for the Regulation of Utilities (CRU) has issued updated guidance for PSO Notification to Suppliers - Engagement of Auditors 2023-24, the updates reflect the revised ISRS 4400 Engagements to perform Agreed-upon Procedures regarding Financial Information. https://www.cru.ie/publications/27473/ Anti money laundering The UK National Crime Agency has issued its latest SARs in Action Issue 20. It deals with topics such as key trends in fraud, romance fraud, money mules and fraud communications and the accountancy sector as an attractive target for payment diversion fraud. Sustainability Public Sector Guidance to Report on Sustainability Program Information.  The International Public Sector Accounting Standards Board (IPSASB®), developer of IPSAS, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued Reporting Sustainability Program Information—Amendments to RPGs 1 and 3: Additional Non-Authoritative Guidance. To access this guidance, its summary At-a-Glance document, and webcast, visit the IPSASB website. The International Sustainability Standards Board has published Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards.  The document will be available to download from the Open for comment section and from the International Applicability of the SASB Standards project page. The Irish Central Bank has recently issued a financial stability note entitled “Going Green, The Growth in Green Mortgage Financing in Ireland” .Content includes an overview, characteristics of green mortgages and comparison of green and non-green market shares. Click to read an article on “How Ireland Is Becoming a leader in Renewable Energy Technology” Other The European Securities and Markets Authority (ESMA) has decided to postpone to 2024 the amendment of the European Single Electronic Format (ESEF) Regulatory Technical Standard (RTS). This decision is in part due to the limited changes in the 2023 update to the International Financial Reporting Standards (IFRS) Taxonomy. On May 8th, 2023, the Dept. Of Enterprise Trade and Employment (DETE) launched a public consultation on proposals to enhance the Companies Act 2014. Please click the link for the DETE press release on the consultation and here to access the consultation and submissions can be e mailed to companylawconsultation@enterprise.gov.ie. The Institute will be working with the various committees to respond to the consultation on behalf of members The closing date is no later than 5pm on 9 June 2023. The consultation is divided into four sections and below you can read a summary of what each section entails if you click onto an Institute news article here. The Institute recently hosted a webinar on the Protected Disclosures (Amendment) Act 2022 which was moderated by Stephen Lowry, Public Policy manager at the Institute. Panellists were Barry Robinson of BDO Ireland, Michael Deeny, an experienced compliance officer and Annelie Demred of Whistlelink, and Institute Technical Manager, Lilian Halpin. The webinar gave an overview of the new legislation, client insights and their experience of implementation together with a demonstration of a whistleblowing compliance tool. You can view a recording of the webinar here: https://lnkd.in/erP92edn Government approval has been welcomed for the priority drafting of legislation to enhance the protection of employees in collective redundancies following insolvency. According to DETE the Bill will further enhance the protection of employees in a collective redundancy situation following their employer’s insolvency by amending the Protection of Employment Act 1977, which governs collective redundancy rules, and the Companies Act 2014. The Bill will also provide for the establishment of a new statutory Employment Law Review Group which will advise the Minister for Enterprise, Trade and Employment on all aspects of employment and redundancy law. The Bill will strengthen the already robust legislative protections and safeguards afforded to the employees. The Companies Registration Office (CRO) has issued the revised date for the requirement to provide a company director’s PPSN for certain filings. The date is now Sunday 11th June 2023 and the CRO has published FAQs to provide further information.    Click to read the Governor of the Central Bank’s blog on crypto and how we can protect the consumer. He discusses the Central Bank’s position on the monitoring and regulation of crypto, decentralised finance, and the scope for leveraging its potential. He references the crypto ecosystem and the risks from crypto and how to address the crypto risk. He also welcomes the European Parliament’s recent approval of the Markets in Crypto Assets Regulation (MiCA). The Minister for Finance recently spoke at a dinner for the Irish Funds sector .He spoke generally about the sector and also mentioned recent Cabinet approval for a review of the Funds sector which  will seek to ensure that the funds sector framework is up-to-date and fit for purpose in the years ahead and that it continues to support national and regional economic growth, as well as job creation. The review will involve a consultation and a 3-month period for completion of submissions.  The Workplace Relations Commission recently published its annual report for 2022. In the report you can read about its activities for the year, and it includes information on Inspection and Enforcement Service, inspections in 2022 and Civil Enforcement of Adjudication Awards together with complaints in 2022, details of its Conciliation, Advisory and Mediation Services and its legal division. In other news on the WRC, it has been directed under Section 20(2) of the Workplace Relations Act 2015, to prepare a Code of Practice on the ‘Right to Request Remote Working’ as required under Part 4 of the Work Life Balance and Miscellaneous Provisions Act 2023. See here for WRC website also for further information. To that end it is undertaking a public consultation with a view to drafting a Code of Practice on the Right to Request Remote Working. Submissions on this matter to be submitted to the WRC by 5pm on 9 June 2023. For further technical information and updates please visit the Technical Hub on the Institute website. Technical Hub on the Institute website.     

Welcome to this week’s Technical Roundup.    In developments this week, the Financial Reporting Council has welcomed the Financial Conduct Authority's recently published consultation on Primary Markets Effectiveness, which propose significant reforms to improve the framework for listing commercial companies' equity shares; IDA Ireland has published its May 2023 monthly e-zine where you can read its latest industry news including about the EU’s Chips Act and Irish aerospace collaboration securing €2.5m Disruptive Technologies Innovation funding. Read more on these and other developments that may be of interest to members below.  Financial Reporting The Institute has recommended, in its response to FRED 82, that the FRC allow small companies an additional three years before they must apply the proposed leasing amendments set out in the Periodic Review of FRS 102. This recommendation is in recognition of the increased compliance demands and reporting requirements which some smaller companies will be exposed to as a result of the changes, as well as the potential consequence that some companies will increase in size as a result of the change. The European Financial Reporting Advisory Group (EFRAG) has issued its April 2023 update. This summarises public technical discussions held and decisions taken during the month. The Financial Reporting Council (FRC) has welcomed the Financial Conduct Authority's (FCA) recently published consultation on Primary Markets Effectiveness, which propose significant reforms to improve the framework for listing commercial companies' equity shares.   The FCA's proposals aim to improve the competitiveness of the UK equity market by creating a more attractive and compelling option for companies considering a share listing in the UK. The proposals include replacing the current standard and premium listing share categories with a single listing category for commercial company issuers of equity shares, retaining the sponsor regime with modifications, and retaining discrete listing categories for other types of instruments. Audit Chartered Accountants Ireland has responded to the IAASB consultation on the Proposed Part 10, Audits of Group Financial Statements of The Proposed ISA For Audits of Financial Statements of Less Complex Entities (ISA for LCE).  The initial proposed ISA for LCE (in 2022) excluded all groups from the scope of the standard, the proposed changes would include some groups, a move we welcome in our response. The IAASB envisions approving a final standard in December 2023. Institute responses to recent consultations can be read here. Accounting The International Accounting Standards Board (IASB) have issued their April 2023 Update which highlights preliminary decisions and projects affected by these decisions. Anti money laundering In April 2023 the UK National Crime Agency has issued its latest edition of its booklet “Suspicious Activity Report (SAR) Glossary Codes and Reporting Routes” and this booklet replaces all previous glossary codes publications. Sustainability Would you like to know more about the Corporate Sustainability Reporting Directive (CSRD)? Join Dee Moran, Professional Accountancy Lead, Chartered Accountants Ireland and Lisa Campbell, Head of Operations in IAASA to understand more about the directive and what future developments might mean for your organisation. There will also be an overview of the proposed European Sustainability Reporting Standards, an update on the assurance of sustainability reporting and an opportunity to ask questions. The webinar will take place on 25 May at 10am and you can register here to attend. Other IDA Ireland has published its May 2023 monthly e-zine where you can read its latest industry news including about the EU’s Chips Act and Irish aerospace collaboration securing  €2.5m Disruptive Technologies Innovation funding. The Charities Regulator has recently issued its latest newsletter  and includes new guidance on charity registration and information on the Charities Regulator stakeholder forum . For further technical information and updates please visit the Technical Hub on the Institute website.   

Chartered Accountants Ireland has issued its response to the Financial Reporting Council’s (FRC) Exposure Draft Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs("FRED 82"). FRED 82 forms part of the periodic review of FRS 102 and other standards maintained by the FRC (such as FRS 105). The most significant changes proposed by the FRC in FRED 82 include proposals to change the Revenue and Leasing requirements in FRS 102 to an accounting regime similar to that in IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leasing respectively, both of which have been in effect at IFRS level for several years now. Some of the key points raised by the Institute in its response include: The Institute conceptually agrees with the proposal to align lease accounting requirements in FRS 102 to reflect the on-balance sheet model from IFRS 16. The Institute recommended that smaller entities are given an additional three years to implement the proposed leasing amendments. This recommendation is in recognition of the increased compliance demands and reporting requirements which some smaller companies will be exposed to as a result of the changes, as well as the potential consequence that some companies will increase in size as a result of the change. The Institute has called for more guidance to be issued in defining the “obtainable borrowing rate” when accounting for leases and how this differs from the “incremental borrowing rate” under IFRS 16. While agreeing with the proposals to update sections 23 and 18 (Revenue) of FRS 102 and FRS 105 respectively, the Institute strongly recommended the inclusion of worked examples in an appendix to demonstrate the differentiating factors that may lead to changes in revenue recognition if the proposed amendments are adopted. The Institute highlighted some concerns regarding simplifications made to IFRS 15 principles in the proposed changes to FRS 102 and FRS 105, instead believing that these simplifications will add complexity to revenue recognition. Following the closing of the invitation to comment period on 30 April, the FRC will now consider the responses received and are expected to publish the final amendments later this year. An effective date of 1 January 2025 has been proposed for the changes.

Welcome to this week’s Technical Roundup.   In developments this week, the European Commission’s EU Green Week is an opportunity to raise awareness, promote and discuss European environmental policy and will take place from Saturday, 3 June to Sunday, 11 June 2023 under the overarching theme of the European Green Deal; the Central Bank has published research and information on ongoing work to ensure consumers are protected in a changing economic landscape.    Read more on these and other developments that may be of interest to members below.   Financial Reporting The European Financial Reporting Advisory Group (EFRAG) is consulting on its draft endorsement advice letter on International Tax Reform – Pillar Two Model Rules. Comments are requested by EFRAG by 24 May 2023.  EFRAG has also issued its Recommendations and Feedback statement which summarises the main comments received by EFRAG on its recent discussion paper- Better Information on Intangibles – Which is the best way to go?  The IFRS Foundation has published its annual report and audited financial statements for the year ended 31 December 2022. Marking a transformative year for the IFRS Foundation, the report highlights significant accomplishments by its two boards, the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB). The two boards are united in the mission to provide better information about companies all over the world so that investors and other capital market participants can make better decisions―better information for better decisions.  Audit The Staff of the International Ethics Standards Board for Accountants released a jurisdictional PIE database to further support the adoption and effective implementation of the revisions to the definitions of listed entity and PIE in the International Code of Ethics for Professional Accountants. The revised PIE provisions specify a broader list of categories of entities as PIEs whose audits should be subject to additional independence requirements to meet stakeholders’ heightened expectations concerning auditor independence when an entity is a PIE.  The International Auditing and Assurance Standards Board issued proposed revisions to its current standard on going concern, International Standard on Auditing 570 (Revised), Going Concern.  The proposed changes aim to:  Promote consistent practice and behaviour and facilitate effective responses to identified risks of material misstatement related to going concern;  Strengthen the auditor’s evaluation of management’s assessment of going concern, including reinforcing the importance, throughout the audit, of the appropriate exercise of professional skepticism; and  Enhance transparency with respect to the auditor’s responsibilities and work related to going concern where appropriate, including strengthening communications and reporting requirements.  Comments are requested by August 24, 2023.  Sustainability  The European Single Electronic Format’s (ESEF) implementation has taught us that timely preparation and communication are the most important factors for the success of relevant IT projects. Now, EU Member States have started implementing the Corporate Sustainability Reporting Directive (CSRD) for transposition. Accountancy Europe is hosting a webinar on 16 May – ‘Towards digital corporate reporting with CSRD’ to explore this area.    The European Commission’s EU Green Week is an opportunity to raise awareness, promote and discuss European environmental policy. Organised by Directorate-General for Environment every year, this high-level event attracts policymakers, leading environmentalists, stakeholders from across Europe to discuss pressing issues related to environmental protection and sustainability. This year’s topic highlights the urgent need for sustainability in decision-making.  EU Green Week 2023 will take place from Saturday 3 June to Sunday 11 June 2023 under the overarching theme of the European Green Deal.  In the April 2023 issue of the ISSB podcast, ISSB Vice-Chair Sue Lloyd talks to Chair Emmanuel Faber about the latest developments and discussions from the board.  The discussion covers:  an update on foundational work;  summary of decisions made at the ISSB’s supplementary April 2023 meeting; and  decisions made at the April 2023 ISSB meeting on the ISSB’s Consultation on Agenda Priorities and the International Applicability of the SASB Standards project.  Accountancy Europe has issued a call for an ambitious EU Due Diligence Framework to meet the objectives of the Corporate Sustainability Due Diligence Directive. In its call, Accountancy Europe has set out its recommendations under the following headings;  Support Affected SMEs  Maintain Directors’ role and duties  Set up high quality independent third-party verification  Ensure workable rules for civil liability enforcement  In a recent webinar hosted by the International Federation of Accountants (IFAC), the International Public Sector Accounting Standards Board (IPSASB) and Accountancy Europe the issue of sustainability reporting in the public sector was discussed and the need to develop public sector specific sustainability reporting standards.  Other Areas of Interest   The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) have issued their Spring 2023 Joint Committee Report on risks and vulnerabilities in the EU financial system. While noting that EU financial markets remained broadly stable despite the challenging macro environment and recent market pressure in the banking sector, the three Authorities are calling on national supervisors, financial institutions and market participants to remain vigilant in the face of mounting risks.  A new resource, offering advice on how to improve your cyber security and links to information on dealing with cyber-attacks, has this week been published by NICVA (The Northern Ireland Council for Voluntary Action).  The resource, available at Advice for those experiencing cyber attacks | NICVA, was published following the news that hackers had stolen data from charities and community organisations in a cyber-attack on a Londonderry-based IT company.  The Central Bank has published research and information on ongoing work to ensure consumers are protected in a changing economic landscape.  This new research sheds light on the resilience of households to these developments and, more broadly, on how credit markets have been evolving in this rapidly evolving environment. The Central Bank is also publishing a note on the ongoing  work to ensure regulated firms meet the expectations set in its November 2022 Dear CEO Letter on protecting consumers in a changing economic landscape, relating to mortgages secured on a borrower’s primary residence.  The Irish Competition and Consumer Protection Commission recently launched a major campaign to help Irish consumers with their financial dilemmas. Read more in their news release here. The campaign highlights the CCPC’s online financial information hub (ccpc.ie/money) and the CCPC Money Tools – a suite of user-friendly online calculators and comparison tools designed to help everyone make good financial decisions. As part of the campaign, the CCPC is rolling out a series of videos answering real-life consumer questions collected from members of the public across Ireland.  The Decision Support Service was launched this week following the full commencement of the Assistant Decision-Making (Capacity) Act 2015 (as amended). The Act has established a modern legal framework to support decision-making by adults who may have difficulty making decisions without help. One of the key reforms is the abolition of the wards of court system. The DSS have published  13 Codes of Practice to provide essential guidance in relation to the practical implementation of the Act. For more information on the DSS, visit www.decisionsupportservice.ie.  The Minister for Finance recently signed an order to commence a large part of the Central Bank (Individual Accountability Framework) Act 2023 with effect from 19 April 2023. The Minister in a press release described the new legislation as a significant enhancement of the powers of the Central Bank and said he looks forward to commencing the remainder of the Act later this year. He said cultural and practical change in the banking sector and throughout the financial services industry is required to rebuild trust in the financial sector. The Central Bank (Individual Accountability Framework) Act 2023 should make a significant contribution to bringing about this needed cultural change. This is the ultimate aim of this legislation.  Please join us on 9 May for a webinar on “Navigating Ireland's New Protected Disclosures Law - Legal and Practical Insights” The session will be moderated by Stephen Lowry, Public Policy Manager in the Institute and Lilian Halpin, Technical Manager will take part in the panel with Barry Robinson, Head of Forensic Services at BDO in Ireland, Michael Deeny, Compliance Consultant and Annelie Demred, VP Strategy and Growth Whistlelink. There will be an overview of the new legislation, client insights and experience of implementation. We will also discuss European cross sector experience of protected disclosures legislation and there will be an option to stay on the webinar to view a demonstration of a compliance tool.  The Department of Enterprise, Trade and Employment is holding a webinar on Responsible Business, to be held on Tuesday, 23 May, from 10:00am – 11:30am. Responsible Business encompasses a range of initiatives – some voluntary, some mandatory – aimed at promoting positive business impacts on issues such as climate action and human rights, and it corresponds in important ways with the ESG (environment, social and governance) agenda that is now an established aspect of good corporate governance. In this online event, Minister Simon Coveney TD will provide opening remarks on the Responsible Business agenda. Officials from the Department will follow with short presentations, explaining three Responsible Business initiatives of which enterprises should be aware. The webinar will conclude with a Q&A session. You can register for the webinar here.   For further technical information and updates please visit the Technical Hub on the Institute website.      

The National Crime Agency in the UK has recently issued its April 2023 edition (Issue 19) of SARs IN ACTION. It contains items such as a summary of the 2022 SARs Annual Report (which can be accessed in full here), which features statistics covering the years 2020-21 and 2021-22, an article on modern slavery and human trafficking, and looks at SARs related to cryptocurrency and  trust or company service providers. It also has some information on the new SARs portal and on two new podcast episodes on Evolving Payments and Banking Firms and the UK Fraud Communications Toolkit.

Welcome to this week’s Technical Roundup.   In developments this week, the Financial Reporting Council has issued a new web page providing conversation starters to help promote better engagement between investors and audit committees; the European Securities and Markets Authority has published the third edition of its Data Quality Report under the European Markets Infrastructure Regulation (EMIR) and the Securitised Financing Transactions Regulation (SFTR) reporting regimes. Read more on these and other developments that may be of interest to members below.  Financial Reporting The FRS 102 & FRS 105 Periodic Review Consultation (FRED 82) closes on 30 April. Individuals and organisations wishing to contribute to the future direction of Irish and UK accounting standards can submit a response to this. Details of the questions raised by the FRC and how to respond are contained in the “Invitation to comment” section of FRED 82. A summary of the changes proposed in FRED 82 can be found in our recent event with the FRC. The IASB have issued their Supplementary Update April 2023.  This Update highlights preliminary decisions of the International Accounting Standards Board (IASB). Projects affected by these decisions can be found on the work plan. The UK Endorsement Board (UKEB) has published the 2023 IFRS Standards on behalf of the UK Government. Audit and Assurance  IAASA has published its annual Profile of the Profession for 2022. This contains statistical data provided by the six Prescribed Accountancy Bodies (‘PABs’) within IAASA’s supervisory remit. The Profile of the Profession presents an overview of the PABs’ members and students and includes statistics about the PABs’ regulatory and monitoring activities. The FRC has issued a new web page providing conversation starters to help promote better engagement between investors and audit committees. The goal of this is to facilitate better understanding of companies and their approach to financial reporting and internal control. Sustainability The International Sustainability Standards Board (ISSB) will shortly be seeking feedback on its future priorities for the next two years. In May 2023, the ISSB plans to publish a request for information about its agenda priorities with a comment period of 120 days. Anti money laundering, terrorist financing The National Crime Agency in the UK has recently issued its April 2023 edition (Issue 19) of SARs IN ACTION. It contains items such as a summary of the 2022 SARs Annual Report (which can be accessed in full here), which features statistics covering the years 2020-21 and 2021-22, an article on modern slavery and human trafficking, and looks at SARs related to cryptocurrency and  trust or company service providers. It also has some information on the new SARs portal and on two new podcast episodes on Evolving Payments and Banking Firms and the UK Fraud Communications Toolkit. Other Areas of Interest   Accountancy Europe’s latest online blog ‘Beyond the books: soft skills as important for accountants as technical knowledge’ by Jens Poll, AE Deputy President, discusses how, if the profession wants to be a part of the transition and accompany clients through it, we must adapt and be open to change. Soft skills and openness help build long-lasting client relationships based on mutual communication. With time and trust, our advice becomes more diverse and personal. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the third edition of its Data Quality Report under the European Markets Infrastructure Regulation (EMIR) and the Securitised Financing Transactions Regulation (SFTR) reporting regimes.  The report highlights the increased use of transaction data by EU financial regulatory authorities in their day-to-day supervision and identifies significant quality improvements following a new approach to data monitoring. The Dept. of Enterprise Trade & Employment has published its April 2023 Enterprise newsletter. It includes details on a couple of consultations, one on the EU proposal for a directive on liability for defective products and a consultation on guidelines for the export of cyber-surveillance items. It also includes the latest round of the Online Retail Scheme where retailers can access up to €25,000 in grant funding to strengthen their ecommerce capabilities. Details of application requirements including provision of statutory accounts can be found in the link in the newsletter and submissions should be made by 3rd May 2023 at 12.00pm (noon). The Companies Registration Office has delayed the implementation of the CRO PPSN project which was due to go live on April 23rd. The CRO have indicted that it is a short delay and we will keep you updated. In the meantime, members are advised to continue to prepare for the new requirements. We are pleased to have recently launched new webpages providing information and resources to members in the area of protected disclosures legislation. The pages are located on the Institute’s technical hub. Click here for the protected disclosures landing page. The pages cover both the Republic of Ireland and the UK and deal with areas such as updates to Irish legislation since the commencement of the Protected Disclosures (Amendment) Act 2022 earlier this year. For example, an expanded definition of worker, wrongdoing and penalisation. The pages also deal with reporting requirements including the new internal reporting channel and procedures required under the 2022 Act. The pages also collate some of the many resources available on the topic. We hope members will find the new resource useful. For further technical information and updates please visit the Technical Hub on the Institute website.